Subject
- Class
- AP Microeconomics – Marginal Analysis
- Targeted learners
- High school learners with the objective of achieving a 4 or 5 on the AP Microeconomics test
Objective
- Provide a relatable example of first principles, microeconomics as the study of the firm in the allocation of scarce resources.
Vocabulary
- paradox
- resolution
- price (aka, market price)
- value
- marginal
- think “derivative” – for those who know differential calculus, whenever you hear “marginal” in the social science, make a connection to derivative.
- utility
- Adam Smith
Prerequisite Knowledge
- An understanding of the first principles of microeconomics
- the study of firms (individuals) in making decisions regarding the allocation of scarce resources and the interactions among firms and individuals.
Materials
- Required:
- none
- Optional:
- none
Class content – The Paradox of Value
- Why are diamonds valued more than water?
- This question puzzled philosophers for a long time.
- Is this a simple question?
- Why do you think the question puzzled philosophers?
- Have you ever observed children at a potato chip bowl?
- How many potato chips will they eat?
- If you are at a buffet, how much will you eat?
- A GS-25 has a one-day sale on your favorite candy. Will you buy more, less, or the same number of units as on any other day?
- Why do newspaper vending machines allow users access to the whole inventory?
- … while soda and candy vending machines give one at a time?
- Why do professional soccer players make more than teachers?
Assessment
- Learners should be able to
- recognize that economic goods are valued “at the margin”, at the cost vs the benefit of the last unit consumed per time period.
- explain the effect of price on consumption
Homework
- Go to the cafeteria and pay attention to how much you (consume) eat, how you chose how much to consume, and at what point you decided to stop.
- Go to a store and buy something. How did you decide what to buy and how much to buy?
Joseph English - Math & Computer Science 