A lump sum only effects total cost or total profit. Marginal cost, (be it private or social) determine the price, so a lump sum would have no effect.</p>
Here’s one for just Macro!</p>
<a href=“http://talk.collegeconfidential.com/history-social-sciences/1146378-official-ap-macro-economics-discussion-2011-a.html#post12621204[/url]”>http://talk.collegeconfidential.com/history-social-sciences/1146378-official-ap-macro-economics-discussion-2011-a.html#post12621204</a></p>
3000 is correct! 
Thanks for responding! The way you showed how was helpful too, Staller & graceee!</p>
Things just keep getting worse for me. I said that the lump-sump would eliminate the DWL. Again, would I only lose 1 point (and not 2) if my reasoning for eliminating the DWL was correct?</p>
^^YESSS!!! Then for the graph prior to that one, did you have a MC curve, a horizontal MSB/P curve and then the MSC to the left of the MPC?</p>
I dont get it… wouldnt the lump sum tax make the supple curve go to the left!!!</p>
No. For a negative externality there is a decrease sloped line for demand, and two increasing slope lines. One is MSC and one is MPC. MSC is more to the left than MPC.</p>
In the macro problems it does shift the supply up, however, for the quantity to be made, by an individual firm, depends entirely on the MC, since when MC = MR that’s the optimal production amount.</p>
^^@Staller: So would i get partial credit then? i had MSC farther to the left than MPC?</p>
For a government imposed ceiling, the new quantity would be wherever the demand and the ceiling meet, no?</p>
QUESTION: Do you guys think they’d take credit off if I drew straight lines instead of curved lines for things like MSC and MPC as long as the slopes and everything were correct?</p>
If you want to discuss Macro only, go to:</p>
<a href=“http://talk.collegeconfidential.com/history-social-sciences/1146378-official-ap-macro-economics-discussion-2011-a.html#post12621204[/url]”>http://talk.collegeconfidential.com/history-social-sciences/1146378-official-ap-macro-economics-discussion-2011-a.html#post12621204</a></p>
Macro: MC wasn’t bad, some of them I wasn’t sure on but I think I got no more than 10 wrong. FRQ was pretty easy, except the last question was tricky and 2a…hopefully I guess right on those.
Micro: MC was difficult, FRQs were a really easy except 1 f ii (I think I got it right but only because that’s the only number that made sense to me) and g i (I think I guessed right though, assuming that MR was zero at ten).</p>
If there was a girl named Susan, do you think she would be frictionaly unemployed?</p>
Frictional unemployment is unemployment right before you get another job, be it you quit or are new to the labor force and have yet to choose a job.</p>
Man. I completely blanked on how to draw negative externalities. I had MSC going up (looked like supply curve) and MPC going down (looked like demand curve). Is this good for like a couple points off? Again, if I kept everything consistent with my incorrect graph, will I get credit for that?</p>
Hey for the micro FRQ #3, how does the lump sum tax affect the deadweight loss?</p>
Uuuuuuugh micro. I’m actually more concerned for my teacher reading my answers than for my actual AP grade; we were told to rewrite all our answers in the green scrap booklet and it’d be counted as our final grade in school. In addition to wasting a ton of actual time, I’m 99% sure my teacher is going to think I’m the biggest idiot because I drew the graph on #3 completely wrong.</p>
But on the other hand, who even cares. Done with AP!</p>
A lump sum tax on a negative externality will decrease deadweight loss.</p>
i dont think what people on this forum makes sense… because why would they ask to draw the effects of the lump sum tax??? if it didnt change anything, then why would we graph it???</p>
A lump sum will do nothing. Notice that the determinants of externality price and quantity are marginal social cost curve, and marginal private cost curve. A lump sum has no effect on the marginal cost, only the total cost and total profits. So it would have no effect on the marginals curves, and would not decrease the deadweight loss.</p>
Thats what I think at least.</p>