GDP Deflator vs. CPI

https://drive.google.com/file/d/0B9GG2MQzguFQcDhhUzN5LXJfdjg/view?usp=sharing

Does Uber undestand the laws of Supply and Demand?

Many of us have been, flailing our arms around hoping that a cab will stop to pick us up.  Maybe if I walk down one more avenue.  Maybe if we cross the street.  Catching a cab can be an exercise in futility.  Even worse is the experience inside the cab as your driver attempts to get you from point A to point B while trying to cut off as many cars as possible.  It is almost as if every driver is competing for "most aggressive cabbie" and they are all winning.

Wouldn't it be great if there was an alternative?  A type of car service that you can arrange on your phone and you could rate the experience?  Enter Uber.  But some complain that Uber is Unnecessary.  Others argue that their pricing system is unfair, or that it takes advantage of riders.  Perhaps Uber simply understands the laws of Supply and Demand.  Read the articles that follow and answer the questions.

http://www.economist.com/blogs/graphicdetail/2015/08/taxis-v-uber

http://www.economist.com/news/finance-and-economics/21599766-microeconomics-ubers-attempt-revolutionise-taxi-markets-pricing-surge

http://www.cnet.com/news/detest-ubers-surge-pricing-some-drivers-dont-like-it-either/

http://qz.com/505031/uber-got-two-economics-phds-to-explain-how-supply-and-demand-works/

https://www.washingtonpost.com/news/the-switch/wp/2015/05/19/no-uber-drivers-cant-game-the-surge-pricing-system-the-way-one-driver-claims/

Discussion Questions:

1)  Explain Uber's "Surge Pricing."  Is this form of Price Discrimination a good thing or a bad thing?

2) Do you think politicians should limit what Uber can charge?  Explain one argument in favor of capping Uber fees.

3) How has the expansion of Uber impacted the Taxi market?

Review Videos

Just in case you haven't been paying attention all year, watch the following videos for a crash course in AP Macroeconomics.

Practice Exam Answers

Below are links to the answers to the various Practice Exams that you have completed.  Look over the answers and come to class with questions.

2010 MC
https://drive.google.com/file/d/0B9GG2MQzguFQdVBydWxOM0dGa00/view?usp=sharing


(Explanations Powerpoint, although the questions are out of order, pretty good intro review)
https://drive.google.com/file/d/0B9GG2MQzguFQRmhMcl9jbUhxVTQ/view?usp=sharing

2005 MC
https://drive.google.com/file/d/0B9GG2MQzguFQWlltVzg4T2tCRUE/view?usp=sharing


Take Home Practice Test
https://drive.google.com/file/d/0B9GG2MQzguFQa1JrOVpidkRJbnM/view?usp=sharing

Comparative Advantage Practice

Here is the link to some practice questions for the quiz tomorrow.  The answers will be uploaded shortly.

https://drive.google.com/file/d/0B9GG2MQzguFQeTFOSy11VFdYVDA/view?usp=sharing

Here are the answers.  I will answer any questions tomorrow in extra help before school.  Good Luck!

https://drive.google.com/file/d/0B9GG2MQzguFQV3hVcXZxSUVQNXM/view?usp=sharing

Loanable Funds are REALly Fun!

In class we talked about the Market for Loanable Funds.   The links below provide additional information about the graphs that might be useful on a pop quiz.

http://welkerswikinomics.com/blog/2012/05/08/loanable-funds-vs-money-market-whats-the-difference/

 http://apcentral.collegeboard.com/apc/members/courses/teachers_corner/49477.html

AD/AS Graphing HW Answers

Here are the solutions to the AD/AS review sheet from class today.  The question numbers are different but the questions themselves are the same.  Send me an email or tweet if you have specific questions.  Good luck with your studying!

 
https://drive.google.com/file/d/0B9GG2MQzguFQX0tPZHdWdWFNSWc/view?usp=sharing

https://drive.google.com/file/d/0B9GG2MQzguFQVERfc19NLVFxeUE/view?usp=sharing