The following is a copy of the table you need to complete for homework with regards to definitions and examples of terms associated with the concept of supply and demand.

The following is a link to your homework exercise on the "Non price determinants of Supply" due Wed Nov 18th, 2009.

Homework due Wednesday jan 20th 2010 on elasticity (SL).

The following are the answers to the exercise given in class March 22 2010 on "The Costs of Production"

Homework on GDP due April 21 2010
Instructions: You must answer the first four questions (labelled questions 1, 2, 2, 6) in the Word document below that contains your homework. After those three questions you will find a set of Multiple choice questions regarding National Income Accounting. You do not 'have' to do those, they are there for you use to test your understanding. I can give you the answers to them on Wednesday.

MONDAY APRIL 26TH HL Econ year 12
Homework for Thursday April 30: Draw 2 diagrams similar to the ones you received in class on Monday. Your diagrams should illustrate what happens in the long run in a perfectly competitive market when firms in that market are suffering negative economic profits. Some firms will have to shut down and stop production (not all firms but some). Once they shut down, they stop producing and so the total suppply in that market will decrease (as less firms are producing). you need to show how this affects the market and how the change in the market changes the profit sitution for the firm.


May 28 2010 - In class today I explained the concepts of monetary and fiscal policy to you. On wednesday, I explained and illustrated the natural process of adjustment an economy goes through after a positive demand shock, causing an inflationary gap. For homework after that class, you were asked to write up an explanation and illustrate how an economy would naturally recover from a negative demand shock, by foloowing my notes given in that class. Today I explained and illustrated how government intervention would play a role in the recovery of an economy back to FE macro equil after a positive demand shock.
YOU SHOULD: write an explanation and illustrate how government intervention would play a role in the recovery of an economy after a NEGATIVE demand shock. Then you should compare the result of that situation to the result if there were no gov intervention (if the economy were left to adjust naturally).
YOU SHOULD: write an explanation and illustrate the natural process of adjustment an economy would go through if they faced a positive SUPPLY shock, and then do the same for a NEGATIVE supply shock. You should then compare those two situations to the situation whereby the gov may intervnene (recall that the gov intervenes by using fiscal or monetart policy in order to influence AD).
In a few days I will post the explanations and illustrations of those situations so you can check your work.