Monday, November 16, 2009

Exam Questions of the Week

Summary: Jason Welker's AP and IB exam questions of the week to prepare students for critical thinking.

IB Question of the week: Unit 4 – International Economics

Explain why a country’s large current account deficit puts downward pressure on its exchange rate and and why this may be inflationary for the country.

AP Question of the week: Unit 2.2 – Elasticities

Assume that hamburgers and french fries are complementary goods. The government decides to begin taxing the production of beef, an input in the production of hamburgers.

For each of the following markets, draw a supply and demand diagram showing the effect of a tax on beef producers. The beef market. The hamburger market. The French fry market. Assume that the demand for hamburgers inelastic in the short-run. How will the tax on beef affect the revenues of hamburger producers?

In the long-run demand for hamburgers is elastic. Explain why this may be.

These questions are from Jason Welker's Blog. Visit and become a Diigo member to share your questions and research. I believe that writing leads to learning.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an author, and blogs at Mikeroeconomics.


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