{"id":18181,"date":"2019-12-12T00:28:00","date_gmt":"2019-12-12T05:28:00","guid":{"rendered":"https:\/\/iblog.dearbornschools.org\/farhoud\/?p=18181"},"modified":"2019-12-12T02:19:00","modified_gmt":"2019-12-12T07:19:00","slug":"ap-economics-12-13-19","status":"publish","type":"post","link":"https:\/\/iblog.dearbornschools.org\/farhoud\/2019\/12\/12\/ap-economics-12-13-19\/","title":{"rendered":"AP Economics &#8211; 12\/12\/19"},"content":{"rendered":"\n<p>I.&nbsp; Bellwork<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Page 704 MC 1-5<\/li><\/ul>\n\n\n\n<p>II.&nbsp; Objectives:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Describe how a worker\u2019s decision about time preference gives rise to labor supply<\/li><li>Determine the equilibrium wage and level of employment in the labor market<\/li><\/ul>\n\n\n\n<p>III.Discussion<\/p>\n\n\n\n<p>The Supply of Labor<\/p>\n\n\n\n<p>A.&nbsp; Work versus Leisure \u2013<\/p>\n\n\n\n<p>B.&nbsp; Wages and Labor Supply<\/p>\n\n\n\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=dSe10LJcXEg\">Ch3-Higher Wages and the Income and Substitution Effects<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Substitution Effect vs. Income Effect<\/li><\/ol>\n\n\n\n<p>a. Substitution effect \u2013 as wages (opportunity cost) increase people will choose work over leisure<\/p>\n\n\n\n<p>b. Income effect \u2013 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).<\/p>\n\n\n\n<p>Figure 71.1 Individual Labor Supply Curve (Backward bending Labor Supply Curve)<\/p>\n\n\n\n<p>At lower wage rates&nbsp; the substitution effect is strong (dominant)&nbsp; and at higher wage rates the income effect is strong (dominant effect)<\/p>\n\n\n\n<p>C.&nbsp; Shifts of the Labor Supply Curve<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Changes in Preference and Social Norms (Ex: More women working)<\/li><li>Changes in Population<\/li><li>Changes in Opportunities (new labor markets opening\/old labor markets closing<\/li><li>Changes in wealth (not change in wages)<\/li><\/ul>\n\n\n\n<p>IV.&nbsp; Classwork<\/p>\n\n\n\n<p>71.1 &amp; 71.2 on iLearn<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I.&nbsp; Bellwork Page 704 MC 1-5 II.&nbsp; 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.&nbsp; Work versus Leisure \u2013 B.&nbsp; Wages and Labor Supply Ch3-Higher Wages and the Income and Substitution [&hellip;]<\/p>\n","protected":false},"author":176,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[95],"tags":[],"class_list":["post-18181","post","type-post","status-publish","format-standard","hentry","category-ap-micro-economics-f2019"],"_links":{"self":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts\/18181","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=18181"}],"version-history":[{"count":2,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts\/18181\/revisions"}],"predecessor-version":[{"id":18192,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/posts\/18181\/revisions\/18192"}],"wp:attachment":[{"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/media?parent=18181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/categories?post=18181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iblog.dearbornschools.org\/farhoud\/wp-json\/wp\/v2\/tags?post=18181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}