AP Microeconomics Mr. Gill Fall 2011 Course Syllabus (AP Audit)
Advanced Placement Microeconomics
Welcome to Advanced Placement Microeconomics! This semester long course is
designed to help you prepare for college level studies, develop critical thinking skills
through the understanding, application, and analysis of fundamental economic concepts.
This will be done in part by integrating the Common Core Standards to the established
College Board curriculum. Concepts such as scarcity, cost-benefit analysis, factor
markets, and market failures will be examined. Students will be expected to apply
quantitative and mathematical skills to economics, as well as apply economic logic to a
wide variety of real world and hypothetical situations. To help you master the material
we will discuss current issues as they apply to the concepts we are discussing in class,
interpret graphs, work through free response questions from earlier exams and have a
variety of assessments designed to challenge you and encourage taking academic risks .
The course is very similar to microeconomics courses offered at the college level.
This course prepares students for the AP Microeconomics Examination in May. There
will be after school review sessions during the spring semester to help you prepare for the
exam. The exam consists of 60 multiple choice questions and 3 free response questions.
The outline of the course content can be found on the back side of this paper. Be proud
of your decision to challenge yourself academically and once again welcome to AP
1. You are here to learn. Appropriate behavior is required. (Read the Text Book)
2. You must be punctual. (Read the Text Book)
3. You should participate in class discussions and contribute to the class goal of learning
economics. You should be willing to spent the extra time to meet AP course
expectations. (Read the Text Book)
4. You will respect the educational opportunity afforded to yourself and your
classmates. (Read the Text Book)
5. Keep up to date on current microeconomic activities. (Read the Text Book)
6. If you miss more than 5 classes and you do not make up the time and work you may
not get course credit. (Read the Text Book)
Your choice to take this course has many benefits and requirements. Upon completion of
this course you should have the following skills
Understanding of the technical information used by businesses.
Ability to examine significant global economic challenges.
Apply economic theory to real world situations.
Analyze economic problems and communicate possible outcomes.
Propose and assess effects and solutions to economic problems.
Relate course content to personal budget and career situations.
Obtain a high score on the AP exam in May 2012.
AP Microeconomic students gain many advantages that are afforded to all AP
students. Among these advantages are
Exposure to a more interesting and challenging curriculum.
Appropriate class placement for students who are self-motivated.
Earning college credit for courses taken in high school.
Developing academic skills needed for college success.
Increased student confidence, motivation and focus.
Reduced cost of college. ($87 for a 3 credit college course)
Grading Contacting Me
Tests/Papers/Projects: 50% Prep Times: 4A, 3B
Quizzes: 30% Phone: 256-4175 ext 69522
Homework/Classwork: 20% Email: firstname.lastname@example.org
Miller, Roger Leroy. Economics Today: The Micro View, 2001-2002 ed.
Pearson/Addison Wesley, 2001
Ray, Margaret and Anderson, David. Krugman’s Economics for AP Worth Publishers,
Worth Publishers 2011
Kasunich, Paul. Advanced Placement Economics: A Study of Macroeconomics and
Microeconomics, The Center for Learning, 2006
Levitt, Steven. Freakonomics
Krugman, Paul. The Return of Depression Economics
Wall Street Journal
The New York Times: Business Day Section
Economics in Action CD-Rom
OLD FREE RESPONSE QUESTIONS FROM AP MICROECONOMICS EXAMS
Economics U$A. Video Series. Educational Film Center. 2002
http://economicschallenge.ncee.net –National Council on Economics Education
I am looking forward to working with you this semester. AP Microeconomics has many
fascinating and potentially powerful applications. You should be proud of your decision
to challenge yourself this semester.
“The best minds are not to be found in government. If that were true business would
steal them away.” Ronald Reagan
UNIT 1: Basic Economic Concepts (2 Weeks)
How does scarcity affect decision making? (2)
How does comparative advantage illustrate opportunity costs? (2)
What is the difference between change in supply/demand and change in quantities
How do determinants of supply and demand impact price and quantity? (3)
What relationship does the circular flow of money model illustrate?
circular flow of money model
factors of production
free market economy
Law of Increasing Costs
limited market economy
production possibility curve
terms of exchange
Traditional market economy
SKILLS/GRAPHS/CHARTS (to create and interpret)
Production Possibility Curve
Evaluate the economic merits of Smith, Malthus, Ricardo, Marx, Keyenes, Spencer
Supply and Demand Graphs- Labeling Activity
Change in demand/supply v change in quantity demanded/supplied
Comparative Advantage Charts
Analyze the Circular Flow of Money Model
Distinguish between positive and normative economics
Video ABC News “Greed” by John Stoessel
Wealth of Nations by Adam Smith
Communist Manifesto by Karl Marx
Stages of Growth: A Non- Communist Manifesto by Walt Rostow
UNIT 2: Nature and Function of Product Markets (12 Weeks)
What are the determinants (non-price) of supply and demand? (3)
What factors affect elasticity of demand? (20)
How do households decide how much of a product to demand, labor to supply, how
much to spend and how much to save? (19)
How do consumers use marginal analysis during the decision making process?(19)
What is the difference between marginal and total utility? (19)
Why do diamonds cost more than water even though one cannot live without
How may government policies impact price and output? (4)
How does the payoff matrix illustrate the game theory? (25)
How does the prisoner’s dilemma illustrate game theory?(25)
What is the difference between the short and long runs? (22)
What is the difference between accounting and economic profits? (22)
What are the characteristics of perfect competition, oligopolies, monopolies and
monopolistic competition? (23,24,25)
artificial shortage (4)
break even point
consumer choice (19)
costs (total, marginal, fixed, variable)
dead weight loss
determinants of demand
determinants of supply
diseconomies of scale
economies of scale
explicit and implicit costs
free market price
income elasticities of demand
law of diminishing marginal utility
price elasticity of supply
profit (economic v normal)
revenue (total and marginal)
Short –run profits and losses
SKILLS/GRAPHS/CHARTS (to create and interpret)
Shifts in supply and demand
Production (Total and Marginal) cost curves
Create and interpret cost and revenue charts
Competetive Firms and Competetive Industry
Consumer and Producer Surplus
Economies (and diseconomies) of Scale-
Diminishing Marginal Utility
Long Run Average Cost Curves
Marginal Cost Curves
Elasticity Curves (Perfectly elastic and perfectly ineleastic)
Monopoly Firms with excess profits and minimizations of losses
Monopoly Inefficiency (allocative and technical)
Price floor and Price ceiling graphs
Marginal and Total Utility Chart
Kinked Demand Curve
Perfect and Imperfect Competion
Monopolistic Competition (Long-Run Equilibrium)
The Popcorn Stand Story- A story of economies of scale
Atlas Shrugged by Ayn Rand
UNIT 3: Factor Markets (3 Weeks)
In what sense is demand for labor “derived” demand? (27)
What is the relationship between a firm’s marginal revenue product curve and it’s
demand for labor? (27)
What are the key factors that influence elasticity of demand for inputs? (27)
How are equilibrium wage rates determined? What impact do labor unions have on
wages and productivity? (28)
What impact do monopsonists have on wages? (28)
What role does economic rent play in the decision making process? (29)
Derived Factor Demand
Labor Supply and Wages
Marginal Revenue Market
Market Distirbution of Income
Price of Capital (Physical and human)
Product Market Monopolies
SKILLS/GRAPHS/ CHARTS (to create and interpret)
Marginal Factor Cost Curve (monopsonists)
Margnal Physical Product
Is Wal-Mart Good for America?-PBS Frontline Series
UNIT 4: Market Failure and the Role of Government (3 Weeks)
What are market failures? (5)
What powers does government have to correct market failures? (5, 31)
Distinguish between public and private goods. (5)
How does the Lorenz curve represent a nation’s economic distribution? (30)
How should a nation address poverty, health- care, education? (30)
How should the government monitor social costs and social benefits?
At what point should the government attempt to correct a market failure?
Distinguish between social and private costs.
How can the market, as well as government, correct positive and negative
Can there be environmentally friendly economic growth?
What are the costs of recycling scarce resources?
Anti- Trust Policies
Externalities (Positive and Negative)
Marginal Social Benefits
Marginal Social Costs
Poverty (absolute and relative)
Public v Private Goods
Transfers in Kind
SKILLS/GRAPHS/ CHARTS (to create and interpret)
Marginal Social Costs (Negative Externalities)
Marginal Social Benefits (Positive Externalities)
An Inconvenient Truth by Al Gore