AP Economics Summer Assignment 2023-2024

Welcome to AP Microeconomics! As we head into our summer vacation, I want to

give you a brief description of the course expectations as well as provide you
with your summer assignment.

This course will move at an accelerated pace and expectations will be high. AP
Economics is intensive in reading and graphing and we will be exploring many
economic theories and principles throughout the year. We will be studying current
events in class so you will want to get into the habit of staying current with the
events of the world around us. Take some time this summer to get comfortable
with some economic websites, such as www.economist.com.

Summer Assignment (Required):

Your summer assignment will include content from Unit 1: Basic Economic
Concepts as well as your own research. Ensure that you familiarize yourself with
the content before attempting this assignment. This assignment will be graded as
your first Summative of Quarter 1, so please ensure to put in all efforts.

Have a great Summer, see you all soon!!!

Ms. Burkett
 AP Economics Summer Assignment 2023-2024

Section A: Short Questions

Answer the following short questions. Answers should be in your own
words.

1.1 In a paragraph of no more than 5 sentences, explain how individuals and

economics confront the problem of scarce resources (5)

1.2 Define “opportunity cost” in your own words. Explain how opportunity costs
related to economics. (4)

1.3 Identify the opportunity cost in the following situation:

“Dan has just graduated, but decides to take a year off before going to college.
He has been offered a full-time job for the whole year. He then decides to take
the job for only six months and spend the other six months traveling.
The opportunity cost of a decision is the value of the next best alternative.” (2)

1.4 Many high schools throughout the United States have faced a serious
shortage of math and science teachers. Many prospective teachers choose to go
into business and industry because of higher salaries. In some communities,
businesses are “loaning” employees who want to teach part-time to schools to fill
the math and science teacher gap. Does this scenario illustrate scarcity? Why or
why not? (4)

1.5 Compare how a market system and a command economy try to cope with
economic scarcity (4)

1.6 In separate paragraphs, explain how a Market Economy and a Command

Economy allocate their resources. (6)

1.7 Do you think Japan is considered to operate as a Market Economy? Explain

your answer by referring to the characteristics of a Market Economy. (6)

Total Section A: 30
 AP Economics Summer Assignment 2023-2024

Section B: Skill Based Questions

Case Study A

Read the following Case Studies and answer the questions that follow

North Korea Suffers Famine

Workers in "unproductive" industries die from lack of food

According to some estimates, ... three million people died in the North
Korean famine of the mid-1990s.... Faced with a massive food shortage,
the North Korean government "made a choice," Natsios said. Making the
regime's survival its top priority, the government decided that food would
go to the country's elite and its military forces. Most citizens, especially
those who lived in regions or worked in industries that the government
deemed "unproductive," were considered expendable. As many as three
million people may have died.Before the famine, North Korea relied on
food
and oil subsidies, mostly from the former Soviet Union. When that aid
declined and a series of natural disasters occurred, the North Korean
government cut food rations to farmers. Many people started hoarding
and stealing. The system collapsed. In Natsios' view, North Koreans lost
faith in the state.
Source: "The North Korean Famine." Peace Watch Online, June 2002

2.1 What decision described in this document is characteristic of a command

economy? Explain your answer.(2)
 AP Economics Summer Assignment 2023-2024

Case Study B
Samsung and the "Next Great Tech Revolution”
Heading Towards a Digitized Life

Lee Jong Jin, 51, is no couch potato. But lounging in his apartment
overlooking the mountains of Seoul, the international trader has little
reason to leave his sofa. As he watches an interactive game show, he
uses the remote to send in answers. In a corner of the 50-inch plasma
screen, he can link to his online bank or control his air conditioner. Lee is
one of thousands of Koreans involved in trials of Samsung Electronics'
Home Network, which allows digital products to talk to each other. If
Samsung has its way, millions around the world will be running their
homes from the comfort of their couch within a few years. ...Over the last
decade, [Samsung] has ... become the most diverse and profitable
consumer-electronics company on the planet. Samsung leads the global
market for color televisions, VCRs, liquid crystal displays for electronic
devices and digital memory devices. ...Since 1999, revenues have
doubled, and profits have risen 20 times. ...In the digital world all these
products will finally be networked to each other ... creating the sort of
"smart" living space imagined only in science fiction. That's the idea,
anyway.The change, says analyst Keith Woolcock of Westhall Capital in
London, will be "the biggest event in technology for the next 10 years."
Source: "Digital Masters," Newsweek (International Edition), October 18, 2004

2.2 What aspects of a market economy are illustrated by Samsung’s financial

success? (2)

2.3 Based on document A and B, in which country does the government appear to
be more involved in controlling business and economy?Why?(3)
 AP Economics Summer Assignment 2023-2024

2.4 Which factors that cause a change in demand does this cartoon address?
Explain your answer.(4)

2.5 Explain how the picture illustrates a cause and effect relationship in the
demand for SUVs.(4)

Total Section B: 15
 AP Economics Summer Assignment 2023-2024

Section C: Research Questions

3.1 Research the economic term “Black Tuesday” and write a response in
paragraph form where you include the history of this economic event. Ensure to
include in your response some of the following key aspects: “Why do we refer to
this event as Black Tuesday?”, “What was the cause of this event?”, “What was
the effect of this event on the economy?”, “Who was most affected by this
event?”. (15)

3.2 We all know the historic economic event known as the “COVID-19
Pandemic”. Research what effects this event had on the economy and which
parts of the world were most affected by this event. Include in your response
strategies that certain countries implemented to restore their economy sa well as
the time period it took for the economy to reset to normal “before the event took
place”. (15)

3.3 Every country engages in economic activity which boosts their economy.
Write a paragraph about which economic activities Bahrain engages in that
boosts its economy. In your response, include aspects that boost the revenue of
Bahrain. Explain these aspects in full by referencing data and statistics relating to
it. (15)

Total Section C: 45

GRAND TOTAL: 90