AP Microeconomics

This course is designed to study the economic principles that apply to individuals and firms within the economy. This course will concentrate on basic economic concepts; the nature of product and factor markets; failure and the role of the government; economic decision- making; the interpretation of graphs, charts and data to describe economic concepts. Students who are part of this course will be presented with a variety of instructional formats including but not limited to the use of newspaper articles, audiovisual demonstrations and computer applications to enhance their understanding of the subject matter. The overall goal of this course is to prepare students to take the AP Microeconomics exam in the spring.

Text

This course will use the textbook. Bade and Parkin, Foundations of Economics AP Edition( Pearon, Adison Wesley 2007) and the accompanying Bade and Parkin, AP Test Prep workbook. Students will also read the book Naked Economics: Undressing the Dismal Science by Charles Wheelan and the Wealth of Nations by .

Curricular Requirements established by the College Board AP are as follows

CR1 The course provides instruction in basic economic concepts

CR2 The course provides students with instruction in the nature and functions of product markets

CR3 The course provides students with instruction in factor markets

CR4 The course provides students with instructions in market failure and the role of government

CR5 The course promotes understanding of economic decision-making and its factors such as marginal analysis and opportunity costs

CR6 The course teaches how to generate, interpret, label, and analyze graphs, charts, and data to describe and explain economic concepts.

Course Outline

Basic Economic Concepts (Chapters1,2,3) 3 Weeks

Topics covered: Scarcity, Opportunity Cost, PPF, Marginal Benefit/ Marginal Costs, Introduction to Absolute and Comparative advantage.

Readings Bade Parkin, Chapter 1 , pg 1-32; Chapter 2 pg 33-60; Chapter 3 61-88

Course Requirements Met CR1, CR5

Supply and Demand (Chapters 4,5,6,7) 6 Weeks

Topics covered: Demand, Law of Demand, Supply, Changes in Demand and Supply, Demand and Supply Elasticity, Surplus, Marginal Benefit and Cost, Determination Price Ceilings and Price Floors

Readings Bade, Parkin, Chapter 4 pg 89-116; Chapter 5 pg117-143; Chapter 6 143-170; Chapter 7 171-192.

Course Requirements Met CR2, CR6

Costs and Revenue (Chapters 11, 12) 2 Weeks

Topics Covered: Theory, of Value, Economic Profit, Short and Long Run Production, Increasing and Decreasing Marginal Returns, Costs( Total, Marginal, Variable, Fixed), Cost Curves

Readings Bade, Parkin, Chapter 11 pg 265-294; Chapter 12 pg 295-322

Course Requirements Met CR5, CR6

Perfect Competition (Chapter 13) 2 Weeks

Topics Covered: Profit Maximization, Output Price and Profit in the Short Run, Output Price and Profit in the Long Run

Readings Bade, Parkin, Chapter 13 pg 323-348

Course Requirements Met CR2

Imperfect Competition ( Chapter 14,15,16) 2 Weeks

Topics Covered: Monopoly, Single Price Monopoly, Rent Seeking, Price Discrimination, Monopolistic competition, Output and Price Decisions, Product marketing, Oligopoly, Barriers to Entry, Game Theory, Prisoners’ Dilemma.

Readings Bade, Parkin, Chapter 14 pg 349-379; Chapter 15 pg 377-400; Chapter 16 pg 401-422.

Course Requirements Met CR2

Factor Markets ( Chapter 18) 2 Weeks

Topics Covered: Factors of Production, Perfectly Competitive Factor Market, Labor Markets, Financial Markets, Stock Markets, Bond Market, Land Markets, Wages and Employment, Economic Rent,

Readings Bade, Parkin, Chapter18 pg 445-470

Course Requirements Met CR3, CR5

The Role of Government (Chapters 8, 9, 10) 2 Weeks

Topics Covered: Taxes, Positive and Negative Externalities, Social Cost vs Social Benefits, Subsidies, Public and Private Goods, Free Rider Problem,

Readings Bade, Parkin, Chapter 8 pg 193-216, Chapter 9 pg 217-240, Chapter 10 pg 241-264.

Course Requirements Met CR4

Economic Thought 1 Weeks

Topics Covered: Adam Smith, John Maynard Keynes, Milton Freeman, Karl Marx, David Ricardo.

Readings. Selected Readings on Economic Theorist.

Evaluation

Grades for this course are determined by an average of class Tests, Quizzes, Papers and Participation.

Tests 40%

Quizzes 20%

Papers 30%

Participation 10%