How

Markets Work!
Principles of Economics
9th Grade
9 class periods- 81 minutes each
McKenzie Kelly
19 February 2015

Assessment Evidence
______________________________________

Performance Tasks- Formative:

Chapter 4 Study Guide

o Graded based on completion
o Due: last day of unit
o 10 points

Product Sales Activity

o Graded based on completion
o Due: last day of unit
o 10 points

Demand Shift Worksheet

o Graded based on completion
o Due: last day of unit
o 10 points

Chapter 5 Study Guide

o Graded based on completion
o Due: last day of unit
o 10 points

Lemonade Stand Activity

o Rubric Attached
o Due: end of Day 5
o 40 points

Supply Shift Worksheet

o Graded based on completion
o Due: last day of unit
o 10 points

Demand and Supply Quiz

o Quiz attached- Short Answer
o Taken on Day 6
o 32 points

Chapter 6 Study Guide

o Graded based on completion
o Due: last day of unit
o 10 points

Market Shift Worksheet

o Graded based on completion

o Due: last day of unit
o 10 points

Chapter 7 Study Guide

o Graded based on completion
o Due: last day of unit
o 10 points

Performance Tasks- Summative:

AP Test Option (Optional)

o Test Attached- Multiple Choice
o Given on Day 8
o 76 points
o ** Must Receive at least 50% to test out of Traditional Unit Test

Unit 2 Test
o Test Attached- Multiple Choice, Matching, Short-Answer, Graphs
o Given on Day 9
o 76 Points

Other Evidence:

Class participation with lecture PowerPoint, Warm-Ups, Closings, and Think-Pair-

Share activities

Completion of Unit Goal Accounting Template

LEMONADE STAND RUBRIC

GROUP MEMBERS: _________________________________

COMPLETE HANDOUT & FOLLOWUP QUESTIONS: _____ / 10

CREATE COMMERCIAL SPECIFIC TO TARGET AUDIENCE: _____ / 10

OVERALL LEVEL OF EFFORT / CREATIVITY:
_____ / 15

MANAGED TO COMPLETE ASSIGNMENT WITHOUT
DESTROYING MY CLASSROOM:


_____ / 5






TOTAL SCORE: _____ / 40

Name: ____________________________

Chapter 4 & 5 Quiz

1. Summarize the law of demand & draw a correctly LABELED demand curve. (4
points)

2. Give an example of how the substitution effect could affect purchases of Pepsi.
Give an example of how the income effect could affect purchases of DVDs. (2
points)

3. Give one example of each of the following (can be unrelated) (4 points):
Normal Good



pair of Complements


Inferior Good



pair of Substitutes


4. What does elasticity of demand measure? (2 points)

5. Give one example of an elastic good & one example of an inelastic good. (2 points)
Elastic




Inelastic

6. Summarize the law of supply & draw a correctly LABELED supply curve. (4 points)

7. How are fixed & variable costs different? Give an example of each. (4 points

8. Explain how subsidies & excise taxes are different. (2 points)

9. Draw the corresponding shifts of the demand curve for PIZZA with the following
changes:






New burger restaurant
Pizza is shown to reduce Students are allowed to
order opens across town
heart attacks

outside food during school


10. Draw the corresponding shifts of the supply curve for PIZZA with the following
changes:






Price of cheese increases New machine cooks pizza Due to nutritional



faster

value, the
Government subsidizes
the entire
industry








11. Which tends to be bigger in the short run- fixed or variable costs?

12. Which tends to be bigger in the long run- fixed or variable costs?

Name: __________________________________

Unit 2 Exam

Period: __________

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

____
1. According to the substitution effect, if the price of Pepsi goes up you might respond by
a. buying a hamburger
c. buying Coke
b. not caring
d. still buying it
____
2. According to the income effect, if the price of DVDs goes up
a. you will still buy them
c. you will buy more
b. you won't be able to buy as many
d. you will stop buying VCR tapes
____
3. Subsidies will always do what to the supply curve?
a. shift it to the right
c. nothing, but demand will increase
b. shift it to the left
d. might not change
____
4. An excise tax will be placed on an object to do what?
a. encourage sales
c. put businesses out of business
b. decrease the amount we are willing to d. make it impossible to find the product
buy
on the open market
____
5. Ceteris paribus is a Latin phrase meaning ___________.
a. Look out for yourself.
c. No government is necessary.
b. Supply is always too high.
d. All else held constant.
____
6. Marginal always means _________.
a. free
c. extra
b. last
d. butter
____
7. A supply ________ is a chart, while a supply __________ is a graph.
a. schedule; curve
c. curve; schedule
b. graph; curve
d. graph; schedule
____
8. An excess demand will most likely cause what?
a. decrease in price
c. decrease in supply
b. shortage
d. increase in taxes
____
9. If the demand for cheese increases, which of the following will also happen?
a. supply curve of cheese decreases
c. demand for milk decreases
b. price of ice cream increases
d. supply of crackers increases
____ 10. An increase in the price of hamburgers could decrease the demand for
a. chicken
c. ketchup
b. ribs
d. steak
____ 11. What will the opening of Long John Silvers do to the supply of pizza in Lewisburg?
a. decrease it
c. will depend on the customers
b. increase
d. absolutely nothing
____ 12. A new Corvette could be considered which of the following?
a. elastic good
c. substitute good
b. normal good
d. all of the above

____

13. Who ultimately has the power in deciding which businesses make money?
a. the government
c. the largest corporations
b. the consumer
d. only businesses with 2 or more owners


Matching

a.
b.
c.
d.

excise tax
complements
inferior good
elasticity of demand

e.
f.
g.
h.

substitutes
subsidy
normal good
excess supply

____

16. anything you buy less of when income increases; cheap stuff

____

17. two products used in place of each other (ie. Hamburger & hotdog)

____

18. government payment to help make a product cheaper

____

19. change in quantity with a change in price

____

20. anything you buy more of when income increases; desirable stuff

____

21. situation when price is set too high

____

22. government tax to make a product more expensive

____

23. two products bought & used together (ie. Hotdog & ketchup)

Explain the law of demand. Explain the law of supply. (4 points)











Draw a combined supply & demand graph & label the point of equilibrium, axis, & curves.
Also, explain why this is often called the intersection of happiness. (4 points)









Explain the difference between a price ceiling & a price floor. Provide one example of
each. (4 points)



Define elasticity of demand (hint: what does it measure?). What does it mean if something is
inelastic? Elastic? Provide one example of each. (6 points)

How can producers use the concept of elasticity of demand to their advantage? When do they
want to charge more for something & when do they want to charge less? (2 points)







Using a supply & demand graph, graphically demonstrate excess demand. Who is unhappy at
this price level & why? (4 points)

Gabe decides that he wants to start his own cookie business. Borrowing money from his loving father,
Gabe first buys the following before he can sell cookies:
Oven--$200

Pans--$20

Utensils--$8

100lbs of cookie dough (enough to make 100 dozen cookies)--$200

Little boxes to sell cookies in (enough to sell 100 dozen cookies)--$40
Based on the above information, name one fixed cost & one variable cost Gabe has. How
are fixed & variable costs different? (4 points)

What would his total costs be to produce 50 dozen cookies? (2 points)

If he sells cookies for $2 a dozen, what would his marginal revenue be for the 35th dozen
he sells? (2 points)

Complete the following chart (8 points):

Perfect Competition

# of Firms:

Market Power:


Examples:

Oligopoly

# of Firms:

Market Power:

Examples:

Monopolistic Competition

# of Firms:

Market Power:


Examples:





# of Firms:

Market Power:

Examples:

Monopoly