## Unit Three: Individuals and Markets

1. Discussed today's topics: individual and total consumer surplus; effects on consumer surplus with changes in price. Homework: Unit 3 packet distributed today, due day of Unit 3 exam (March 5-6); read pp. 142-146; Answer and Look #1, p. 142; Problem Set 2.15, in packet; and extra credit, #1 & 4, pp. 157-158. [2/15]

2. Discussed today's topics: individual and total producer surplus; effects on producer surplus with changes in price. Homework: read pp. 147-156; Answer and Look #1, p. 146; Problem Set 2.16 from packet; and extra credit, Problem Set 2.11 (in packet) and #2 & 3, pp. 157-158. [2/16]

3. Discussed today's topics: total surplus; reallocation of resources; market failure; efficiency costs of a tax; and deadweight loss. Homework: read pp.160-164; answer and look #1, p. 164; answer #1 and 3, p. 178--due Wednesday; and Article 1-10: Economic Systems, also due Wednesday. [2/19]

4. Discussed today's topics: explicit versus implicit costs; accounting versus economic profit; and the implicit cost of capital. Homework: read pp.165-173; answer and look #1 and 2, p. 173; answer #6-10, pp. 179-80--due Thursday. [2/20]

5. Discussed today's topics: marginal cost curve; marginal benefit curve; optimal quantity; total net gain; sunk costs; and MB = MC;. Homework: read pp.173-177; answer and look #1, p. 177; from packet, Activity 1-11 (Anything Worth Doing. . . .); and extra credit, Problem Set 5.1 (MB & MC), and Handout 3-2-1 (Marginal Decisions), both found in packet. [2/21]

6. Discussed today's topics: interest rates; present value; time value of money; Rule of 70; and net present value. Received Unit Three Review sheet. Homework: read pp.230-234; answer and look #1 and 2, p. 234; answer #12 and 13, page 180--due Tuesday; from packet, Problem Set 2-6-1 (Making Choices at the Margin). [2/22]

7. Discussed today's topics:utility; consumption bundle; marginal utility theory; law of diminishing marginal utility. Homework: read pp.234-241 AND 257-70; answer and look #1, p. 241 and #2, p. 258; and from packet, Problem Set 1.7 (Marginal Utility Problem). [2/23]

8. Discussed today's topics: indifference curves; budget lines; optimal consumption bundle; tangency condition. Homework: Read pp. 241-244; Answer and Look #1 & 2, p. 245; from packet, Problem Set 3.1 (Budget Lines), Problem Set 3.2 (Indifference Curves), Problem Set 3.3 (Indifference Curves and Budget Lines and Consumer Satisfaction), and Problem Set 3.5 (Indifference Curves and Budget Lines and Demand Curves); #7 &8, p/ 251; and #1 & 2, p. 278--all extra credit. [2/26]

9. Discussed today's topics: marginal utility theory; marginal utility per dollar; optimal consumption. Homework: Read pp. 245-249; Answer and Look # 1-3, 277; Read pp. 270-277; Answer and Look #1 & 2, p. 277; Answer #9, p. 252--due Thursday. [2/28]

10. Discussed today's topics: substitution effect and income effect on the demand curve; purchasing power; how income and substitution effects can be described using indifference curves and budget lines. Homework: Answer and Look #1 & 4, p. 270; from packet, Activity 2.2 (Why is a Demand Curve Downward Sloping?); Answer #1& 2, 8 & 9, pp. 279-280--extra credit. [3/1]

11. Review for Unit 3 exam. Free Response Questions exam on Monday, Multiple Choice exam on Tuesday. [3/2]

12. Unit 3 exam, Free Response Questions. Unit 3 packet tomorrow. [3/5]

13. Unit 3 exam, Multiple-Choice Questions. Unit 3 Packet due today. Homework: Read pp. 181-189; answer and look #1, p. 189 [3/6]

2. Discussed today's topics: individual and total producer surplus; effects on producer surplus with changes in price. Homework: read pp. 147-156; Answer and Look #1, p. 146; Problem Set 2.16 from packet; and extra credit, Problem Set 2.11 (in packet) and #2 & 3, pp. 157-158. [2/16]

3. Discussed today's topics: total surplus; reallocation of resources; market failure; efficiency costs of a tax; and deadweight loss. Homework: read pp.160-164; answer and look #1, p. 164; answer #1 and 3, p. 178--due Wednesday; and Article 1-10: Economic Systems, also due Wednesday. [2/19]

4. Discussed today's topics: explicit versus implicit costs; accounting versus economic profit; and the implicit cost of capital. Homework: read pp.165-173; answer and look #1 and 2, p. 173; answer #6-10, pp. 179-80--due Thursday. [2/20]

5. Discussed today's topics: marginal cost curve; marginal benefit curve; optimal quantity; total net gain; sunk costs; and MB = MC;. Homework: read pp.173-177; answer and look #1, p. 177; from packet, Activity 1-11 (Anything Worth Doing. . . .); and extra credit, Problem Set 5.1 (MB & MC), and Handout 3-2-1 (Marginal Decisions), both found in packet. [2/21]

6. Discussed today's topics: interest rates; present value; time value of money; Rule of 70; and net present value. Received Unit Three Review sheet. Homework: read pp.230-234; answer and look #1 and 2, p. 234; answer #12 and 13, page 180--due Tuesday; from packet, Problem Set 2-6-1 (Making Choices at the Margin). [2/22]

7. Discussed today's topics:utility; consumption bundle; marginal utility theory; law of diminishing marginal utility. Homework: read pp.234-241 AND 257-70; answer and look #1, p. 241 and #2, p. 258; and from packet, Problem Set 1.7 (Marginal Utility Problem). [2/23]

8. Discussed today's topics: indifference curves; budget lines; optimal consumption bundle; tangency condition. Homework: Read pp. 241-244; Answer and Look #1 & 2, p. 245; from packet, Problem Set 3.1 (Budget Lines), Problem Set 3.2 (Indifference Curves), Problem Set 3.3 (Indifference Curves and Budget Lines and Consumer Satisfaction), and Problem Set 3.5 (Indifference Curves and Budget Lines and Demand Curves); #7 &8, p/ 251; and #1 & 2, p. 278--all extra credit. [2/26]

**ACT Day, February 27 Juniors only at school today.**9. Discussed today's topics: marginal utility theory; marginal utility per dollar; optimal consumption. Homework: Read pp. 245-249; Answer and Look # 1-3, 277; Read pp. 270-277; Answer and Look #1 & 2, p. 277; Answer #9, p. 252--due Thursday. [2/28]

10. Discussed today's topics: substitution effect and income effect on the demand curve; purchasing power; how income and substitution effects can be described using indifference curves and budget lines. Homework: Answer and Look #1 & 4, p. 270; from packet, Activity 2.2 (Why is a Demand Curve Downward Sloping?); Answer #1& 2, 8 & 9, pp. 279-280--extra credit. [3/1]

11. Review for Unit 3 exam. Free Response Questions exam on Monday, Multiple Choice exam on Tuesday. [3/2]

12. Unit 3 exam, Free Response Questions. Unit 3 packet tomorrow. [3/5]

13. Unit 3 exam, Multiple-Choice Questions. Unit 3 Packet due today. Homework: Read pp. 181-189; answer and look #1, p. 189 [3/6]