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%