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AP Microeconomics
Sprayberry High School
P. Tschudi-Rose, Room 116
Fall 2014
Course Description
This year long course will serve as an introduction to the individual components of the economy such as the individual, the household, the industry or firm. The course is designed to prepare students for the Advanced Placement examination in Microeconomics
Textbook/Supplemental Materials
Economics by McConnell and Brue, 16th edition; primary textbook.
New Ideas from Dead Economists: An Introduction to Modern Economic Thought by Todd G. Buchholz, 1989.
Grading System As a one semester, only one final or permanent grade will be awarded for this course in December. AP Macro is a different course which will begin in the Spring.
(These breakdowns are tentative and may be changed based on school directives)
Tests ( 50%
Projects/Special Assignments20%
Classwork/Homework10%
EOCT 20%
Course Outline
Unit I: Basic Economic Concepts
Chapters: 1, 2, 4
1. An introduction to economics and the economy 1. Basic Economic
2. The economizing problem. Concepts A. Scarcity
2. Pure capitalism and the market system choice, opportunity cost.
Topics covered are:
- Methodology 1. Basic Economic
- The economic way of thinking Concepts B. Production
- The broad social goals of society Possibilities Frontier
- Scarcity
- Opportunity cost
Production possibilities curve 1. Basic Economic
Implicit and explicit costs Concepts D. Economic
- Economic systems: tradition, command, market Systems.
- Basic economic questions
- Circular flow of economic activity
- Positive and normative thinking1. Basic Economic
- Pitfalls of economic thinking Concepts C. Comparative
- Absolute and comparative advantage advantage, specialization
- Marginal analysis and trade.
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Unit II: The Nature and Function Product Markets
Chapters: 3, 18, 19
3. Understanding Individual Markets: II. The nature and
Demand and Supply structure of product
18. Demand and Supply: Elasticities and applications markets. A. Supply and
19. Utility and utility maximization demand 1. Market equilibrium
Topics covered:
- The reasons for changes in quantity demanded
and quantity supplied through changes in price. II. The nature and
- The significance of equilibrium in determining structure of product
efficiency markets. A. Supply and
- The assumptions and determinants of supply demand. 2. Determinants
and demand in order to use models of markets of supply & demand
for description, analysis and prediction
- The role and significance of prices in a market II. The nature and
economy structure of product markets
- The concepts of Elasticities of supply and A. Supply and demand
demand 4. Elasticity
- The reasons for and consequences of price
floors and ceilings II. The nature and
structure of product markets
A. Supply & demand
3. Price controls
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Unit III: Market Structure and Production Costs
Chapters: 4, 20, 30
4. The mixed economy: private and public sectors
20. The costs of production
30. Antitrust policy and regulation II. The nature and
structure of product
markets.
C. Production & costs
Topics covered :
- Characteristics, situations, advantages and disadvantages of sole proprietorships, partnerships and corporations
- Costs, implicit and explicit costs
- Revenue, costs and profits
- Diminishing marginal returns
- Normal profits
- Economic profits
Long run/short run
Costs of Production (AVC, ATC, AFC, MC)
- Profit maximization/loss minimization
- The functions of profit in a market economies
- Economies, constant returns and diseconomies of scale
- The MR = MC rule for all firms for determining output for all firms
IV. Role of the government C. Public policy
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Unit IV Perfect Competition and Pure Monopoly
Chapter: 21, 22 II. The nature and function of
21. Perfect Competition product markets
22. Pure Monopoly
Unit V Monopolistic Competiton and Oligopoly
Chapter 23
23. Monopolistic Competiton and Oligopoly II The nature and function of Product
markets
Unit VI Macroeconomic Concepts
Topics covered:
- GDP
- Unemployment
- Inflation
- Monetary Policy
- Fiscal Policy
Unit VII: The Factor Market III. Factor Markets
Chapters: 25, 26, 27, 34 A. Derived factor demand
25. The demand for resources
26. Wage determination
27. Rent, interest, and profit III. Factor Markets .
34. Labor market issues: unionism, A. Marginal revenue product
discrimination, immigration
III. Factor Markets.
Topics covered: C. Labor markets and firms’
- Derived demand – MRC=MRP rule hiring of labor.
- Least cost combination of resources
- Market distribution of income III. Factor Markets.
- Causes and results of income inequality D. Market distribution of income
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Unit VIII: The role of the government in the Economy
Chapters: 28, 6, 7, 8, 11, 12, 14, 34
28. Government and market failure: public goods, externalities, and information
problems
6. Measuring domestic output, national income I. Basic Economic Concepts
and the price level.
7. Economic Growth and E. Property
Macroeconomic instability: unemployment
and inflation
11. Fiscal policy, budget deficit, public debt
12. Money and banking
14. Monetary policy IV. Role of the government
34. Income Inequality and poverty A. Externalities
Topics covered:
- The economic functions of government
- Public goods and services
- Positive and negative externalities IV. Role of the
- Market failure government B.
- Common pool resource issues B. Public goods
- Distribution of income – Lorenz curve D. Income distribution
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Unit IX: The International Economy
Chapters: 5, 35, 36
5. The United States in the Global Economy
35. International Trade
36. Exchange rates, the balance of payments and trade deficits
Topics covered:
- Exchange rates
- Absolute and comparative advantage
- Reasons for and results of trade protectionism
- Theories of free trade protectionism
- Trading blocs
- Globalization
Unit X Personal Finance
“ Life Sim” Personal finance project
Topics covered:
- Careers
- Budgeting
- Decision making
- Banking
- Insurance
- Investments
The italicized numbered references are to the College Board Advanced Placement AcornBook for Microeconomics.