AP微观经济知识点.doc

精品文档】如有侵权，请联系网站删除，仅供学习与交流AP微观经济知识点.....精品文档......Sherry Yao2013530299AP MICRO REVIEW1. Basic Economic Concepts (8%-14%)A. Scarcity, choice, and opportunity costØ Scarcity: the limited nature of society’s resourcesØ Economics: the study of how society manages its scarce resourcesØ People face trade-off (efficiency or equality)Ø Opportunity cost: whatever must be given up to obtain some itemB. Production possibilities curveØ The production possibilities curve shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology Qy 1. The opp cost of Qx equals the slope of curve 2. The opp cost of Qx is higher, the curve is steeper 3. opp cost is constant, the PPF is strict line 4. Technology advance → PPF shiftInefficient QxC. Comparative advantage, absolute advantage, specialization and tradeØ Comparative advantage: the ability to produce a good at a lower opportunity cost than another producerØ Absolute advantage: the ability to produce a good using fewer inputs than another producersØ Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage.D. Economic systemE. Property rights and the role of incentivesØ Property rights: the ability of an individual to own an exercise control over scarce resources Market powerØ Market failure: allocate resources inefficiently ← Negative externalityØ Incentive: something that induces a person to act (the prospect of a punishment or a reward)F. Marginal analysisØ Marginal change: a small incremental adjustment to a plan of actionØ People make choice when marginal benefit ＞ marginal cost2. The Nature and Functions of Product Markets (55%-70%)A. Supply and Demand (15%-20%)a) Market equilibriumØ A situation in which the market price has reached the level at which quantity supplied equals quantity demandedb) Determinants of supply Ø Income: income↓, demand of normal goods↓, demand of inferior good↑Ø Prices of related goods: price of substitute↓, demand of another good↓ price of complements↓, demand of another good↑Ø TastesØ Expectations: expect higher income, demand↑Ø Number of buyers: buyers↑, demand↑c) Determinants of demandØ Input price: input price↑, supply↓Ø Technology: advance in technology, supply↑Ø Expectations: expect the price of goods↑, supply↑Ø Number of sellers: number of sellers↑, supply↑d) Price and quantity controlsØ Demand→, price↑, quantity↑Ø Supply→, price↓, quantity↑e) ElasticityØ Demand Curve Inelastic: Price↑, total revenue↑Ø Demand Curve Elastic: Price↑, total revenue↓Ø Normal Goods & Income Elasticity:The Quantity of Normal Goods moves the same direction with the Percentage of Income 对normal goods的需求量与收入变动同方向运动The Elasticity of Normal Goods is usually positiveØ Inferior Goods & Income ElasticityThe Quantity of Inferior Goods moves the opposite direction with the Percentage of Income 对inferior goods的需求量与授予变动反方向运动The Elasticity of Inferior Goods is usually negativeØ Exy＞1, substitute, Exy＜1, complementaryf) Consumer surplus, producer surplus, and allocative efficiencyØ Consumer surplus: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for itØ Producer surplus: the amount a seller is paid for a good minus the seller’s cost of providing itØ Allocative efficiency: the last unit provides marginal benefit to consumer = the marginal cost to producerg) Tax incidence and deadweight lossØ Tax incident: the manner in which the burden of a tax is a shared among participants in a marketØ Elasticity↑, the tax burden↓Ø Deadweight loss: the fall in total surplus that results from a market distortion such as taxB. Theory of consumer choice (5%-10%)a) Total utility and marginal utilityØ Total utility: The aggregate level of satisfaction or fulfillment that a consumer receives through the consumption of a specific good or serviceØ Marginal utility: gain from an increase, or loss from a decrease, in the consumption of that good or serviceb) Utility maximization: equalizing marginal utility per dollar. (MUX/PX=MUY/PY)c) Income and substitution effectsC. Production and Costs (10%-15%)a) Production functionsØ Production function: the relationship between the quantity of inputs used to make a good and the quantity of output of that goodØ The quantity of the input↑, the production function gets flatterb) Marginal product and diminishing returnsØ Marginal product: the increase in the amount of output from an additional unit of 。