{"id":16660,"date":"2018-12-13T01:23:20","date_gmt":"2018-12-13T06:23:20","guid":{"rendered":"http:\/\/iblog.dearbornschools.org\/farhoud\/?p=16660"},"modified":"2018-12-13T01:49:56","modified_gmt":"2018-12-13T06:49:56","slug":"ap-economics-12-13-18","status":"publish","type":"post","link":"https:\/\/iblog.dearbornschools.org\/farhoud\/2018\/12\/13\/ap-economics-12-13-18\/","title":{"rendered":"AP Economics &#8211; 12\/13\/18"},"content":{"rendered":"<p><strong>I.\u00a0 Bellwork<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Page 704 MC 1-5<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Pg 704 FRQ #2<\/span><\/li>\n<\/ul>\n<p><strong>II.\u00a0 Objectives:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Describe how a worker\u2019s decision about time preference gives rise to labor supply<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Determine the equilibrium wage and level of employment in the labor market<\/span><\/li>\n<\/ul>\n<p><strong>III.Discussion<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The Supply of Labor<\/span><\/p>\n<p><strong>A.\u00a0 Work versus Leisure &#8211;<\/strong><\/p>\n<p><strong>B.\u00a0 Wages and Labor Supply<\/strong><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Substitution Effect vs. Income Effect <\/span><\/li>\n<\/ol>\n<p><b>a. Substitution effect<\/b><span style=\"font-weight: 400;\"> &#8211; as wages (opportunity cost) increase people will choose work over leisure<\/span><\/p>\n<p><b>b. Income effect <\/b><span style=\"font-weight: 400;\">&#8211; As people make more money and become better off financially, they want to consume more leisure. (Leisure is a normal good and demand increases with income).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Figure 71.1 Individual Labor Supply Curve (Backward bending Labor Supply Curve)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At lower wage rates \u00a0the substitution effect is strong (dominant) \u00a0and at higher wage rates the income effect is strong (dominant effect)<\/span><\/p>\n<p><strong>C.\u00a0 Shifts of the Labor Supply Curve<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Changes in Preference and Social Norms (Ex: More women working)<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Changes in Population<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Changes in Opportunities (new labor markets opening\/old labor markets closing<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Changes in wealth (not change in wages)<\/span><\/li>\n<\/ul>\n<p><strong>IV.\u00a0 Classwork<\/strong><\/p>\n<p>71.1 &amp; 71.2 on iLearn<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I.\u00a0 Bellwork Page 704 MC 1-5 Pg 704 FRQ #2 II.\u00a0 Objectives: Describe how a worker\u2019s decision about time preference gives rise to labor supply Determine the equilibrium wage and level of employment in the labor market III.Discussion The Supply of Labor A.\u00a0 Work versus Leisure &#8211; B.\u00a0 Wages and Labor Supply Substitution Effect vs. [&hellip;]<\/p>\n","protected":false},"author":176,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[89],"tags":[],"class_list":["post-16660","post","type-post","status-publish","format-standard","hentry","category-ap-economics"],"_links":{"self":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts\/16660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/comments?post=16660"}],"version-history":[{"count":0,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts\/16660\/revisions"}],"wp:attachment":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/media?parent=16660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/categories?post=16660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/tags?post=16660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}