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; market 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 Adam Smith.
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, Price 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: Marginal Utility Theory, Paradox 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%