A.P. ECONOMICS - SUMMER READING ASSIGNMENT - “THE ...

A.P. ECONOMICS - SUMMER READING ASSIGNMENT - “THE UNDERCOVER ECONOMIST”Welcome to A.P. Economics! Economics is the study of “choice-making” and youhave made the choice (rational or not) to take Economics at the Advanced Placementlevel. With all choices in life there are TRADE-OFFS, what we economists call“opportunity costs” of your decision. “There’s no such thing as a free lunch”, as there arecosts associated with all decisions! The trade-off for taking this rewarding course is theneed to complete a summer reading assignment that follows. Again, choose to do it or notdo it, you will quickly learn the concept of opportunity costs that are attached to yourdecision-making! Economist like rational decisions – those that weigh the costs andbenefits. Choosing to starting the course off with a zero as a first impression doesn’tseem very rational, esp. when college is approaching.By signing up for A.P. Economics, you also enter the world of WACHECON!WACHECON is our class website that has been recognized among several economicsteachers nationally as being one of the better sites for AP Economic resources. I havespent tireless number of hours creating this site for you. You will find it to be very helpfuland convenient if you choose to commit to using it. It can even be converted to a App. Foryour smart phone and you can follow WACHECON on Twitter! More than just a website,wachecon is an experience!I will need ALL OF YOU TO OFFICIALLY JOIN THE SITE AS A MEMBER THIS SUMMER.This must be done by the first week of school. To do so, simply:1. Go to www.wachecon.com - click on AP Economics and scroll to the middle of thepage where it says JOIN HERE in green.2. Click on JOIN HERE and follow directions. PLEASE USE A GMAIL ACCOUNT! Ifyou do not have one, make one.(* Note: I will be working on the site this summer so it will be up and down)The following pages include your summer reading assignment. This summer I selectedthe book “The Undercover Economist” by Tim Harford. This book can be found onAmazon.com for under $12.00 and I have a link to purchasing it on my websitewww.wachecon.com. There original version (2007) has a green background cover and theupdated (2012) version has a black background. I does not matter which version you use,I believe the questions match both editions. There is also a Kindle version for $9.99.The summer reading assignment is broken into two parts – Part 1 is due the first classmeeting and Part II is due the first Friday of school.I look forward to working with you all next Fall and hope you commit to the course! Asalways, feel free to e-mail me any questions during the summer atKevin_Magnani@wrsd.net.Have a great summer!Mr. Magnani

A.P. ECONOMICS - SUMMER READING ASSIGNMENT - “THE UNDERCOVER ECONOMIST”PART 1: After reading the assigned book, “The Undercover Economist” by Tim Harford, TYPEa FULL, DETAILED response to each of the following questions below. All responses must betyped in 12 size font, double-spaced. This Part I is due on the first day on class, worth 50points on term #1. Late assignments receive 10 pts off each day late, 20 over a weekend.Introduction What is your initial impression of how an economist sees the world?After reading the book, how would you describe the economist's way of looking at the world?Chapter 1 Key concepts: scarcity, marginal, modelWhat is the connection between "relative scarcity" and "bargaining strength"?What does it mean to say that something is "marginal"? Why does this matter?How would you describe Ricardo's model? What are the limitations of the model?What is "objective" about economics?Chapter 2 Key concepts: price elasticity (sensitivity), price discrimination (targeting)What is the difference between "first degree price discrimination" (unique target) and "second degreeprice discrimination" (group target)? Does targeting seem fair to you?What are the advantages and disadvantages of price-targeting?Chapter 3 Key concepts: perfectly competitive, efficiency, equityWhat are the four results of perfectly competitive markets?Explain the following: "you can't get more efficient than a perfectly competitive market".What is the difference between efficiency and fairness (equity)?Chapter 4 Key concept: externalityWhat would be an example of a negative (positive) externality?What is the relevance of "average price" and "marginal price" to externalities?Chapter 5 Key concepts: asymmetric information, adverse selection, moral hazard, signalingHow is adverse selection (the lemons problem) different from moral hazard?What would be some (partial) solutions to problems related to asymmetric information?Explain what Harford means by "keyhole economics".Chapter 6 Key concepts: random walk, fundamental analysisGiven what you've read, what would a rational investment strategy look like?Chapter 7 Key concepts: game theory, auctionWhat are the advantages and disadvantages of an auction?Chapter 8 Key concepts: diminishing returns, catch-up effect, infrastructure, self-interest, incentivesWhat is the traditional view of the origins of economics wealth?How has the traditional view changed over the last ten years?Chapter 9 Key concepts: comparative advantage, globalization, trade barriersAre Harford's views consistent or compatible with your own?Are his arguments convincing? Why, or why not?Chapter 10 Key concepts: planned economy, market economy, choiceExplain why China moved only gradually from a planned economy toward a market economy.Why is China doing better economically than India? than Cameroon? According to Harford, what is economics about?

A.P. ECONOMICS - SUMMER READING ASSIGNMENT - “THE UNDERCOVER ECONOMIST”PART II:“The Undercover Economist” – Online Presentation Assignment Choose an economic concept covered by Tim Harford’s book, The Undercover Economist. Identify a current event/ economic issue that demonstrates this concept at work and create an online presentation to submit on the first week of school. Online Presentation After identifying an economic concept and corresponding current event, you will be required to submit an online presentation. The online presentation will be submitted to the teacher in the form of e-­‐mail at Kevin_Magnani@wrsd.net, on flash drive (formatted for a Macbook), or a DVD. The online presentation is simply a report using the medium of power point, virtual online tools, media, etc. in lieu of a typed report. The online presentation MUST be formatted and organized as shown below: The presentation should be organized to include: 1. A detailed explanation / definition of the economic concept from Harford’s book, with proper citations from the book where needed. 2. Description of the current event / economic issue that connects with the concept and an explanation of just how it demonstrates the concept. 3. Detailed description of the opposing viewpoints of the current event issue. 4. Your economic opinion (using economic logic) as to the current event you chose. Essentials within your report: • Citations from the summer reading book Undercover Economist • Citations from any research source you used • Illustrations to accompany your information – photos, visuals, video stream • Length: Power point = min 20 slides, video = min. 15 minutes NOTE: PLAGAIRISM OF ANY INFORMATION OR SHARING OF INFO BY STUDENTS WILL RESULT IN A FAILED GRADE!! Evaluation You will be evaluated based on the following: • Punctuality • Economic reasoning / accuracy • Research and organization • Creativity / Originality • Detail / completeness Point Values The project will be worth a total of 100 points. 15 pts off each day late (30 over weekend) Due Date: Part II is due the First Friday of school BE SURE YOU FORMAT YOUR WORK TO BE COMPATIBLE WITH MAC BOOK!