Advanced Placement Microeconomics Syllabus
The AP Microeconomics course is designed to give students a thorough understanding of
the principles of economics that apply to the functions of individual decision-makers,
both consumers and producers, within the economic system. It places primary emphasis
on the nature and functions of product markets, and includes the study of factor markets
and of the role of government in promoting greater efficiency and equity in the economy.
Textbook and Materials:
Required Text: Mankiw, N. Gregory. Principles of Economics. 2ns Ed. Orlando,
Florida: Harcourt College Publishers. 1998
Study Guide to Accompany Text: Hakes, David R. Study Guide Principles of
Economics. 2nd Ed. Mason, Ohio. South Western Thomson learning. 2001.
Summer Reading: Wheelan, Charles. Naked Economics; Undressing the Dismal
Science. New York, New York: W.W. Norton & Company. 2002
Course Overview:
First Semester
Unit 1:
Introduction to Economics: Scarcity and Opportunity Cost
(2-3 Weeks) Chapters 1,2, and 3
Assessments: - Quiz following each chapter: aprox 25 questions/ 50 mins per chapter quiz
- Unit Test: aprox 50 multiple choice 50 mins and 2 free response with PPC
graph and Opportunity Cost (30 mins)
Unit 2:
(4-5 Weeks)
Supply and Demand
Chapters 4,5,6,7,8, and 9
Assessments: - Quiz following each or every other chapter: aprox 25 questions/ 50 mins per
chapter quiz
- Unit Test: aprox 50 multiple choice 50 mins and 2 free response with S & D
graphs and utility maximization (30 mins)
Unit 3:
(5-6 Weeks)
Business, Labor, and Theory of the Firm
Chapters 13, 14, 15, 16, and 17
Assessments: - Quiz following each or every other chapter: aprox 25 questions/ 50 mins per
chapter quiz
- Unit Test: aprox 50 multiple choice 50 mins and 2 free response with Perfect
Competition and monopoly graphs (30 mins)
Unit 4:
(2-3 Weeks)
Factor Markets
Chapters 18, 19, and 20
Assessments: - Quiz following each chapter: aprox 25 questions/ 50 mins per chapter quiz
- Unit Test: aprox 50 multiple choice 50 mins and 2 free response with Labor
Market Graph (30 mins)
Unit 5:
(2-3 Weeks)
Public Finance
Chapters 10,11, and 12
Assessments - Quiz following each chapter: aprox 25 questions/ 50 mins per chapter quiz
- Unit Test: aprox 50 multiple choice 50 mins and 2 free response with perunit tax graph & defining surplus (30 mins)
Topics in Microeconomics
Topics: The following are topics that we will be covering during the unit. These topics
will be tested on the Unit Exam. In addition, there will be chapter quizzes covering these
topics.
Unit 1: Scarcity and Opportunity Cost
Chapters: 1) Ten Principles of Economics
Pg. 1-18
2) Thinking Like an Economist
Pg. 19-46
3) Interdependence and the Gains from Trade
Pg. 47-62
TOPICS:
Normative and Positive Economics
Scarcity
Choice
Opportunity Costs
Unlimited Wants
Limited Resources
PPC
Circular Flow
Markets
Command, Tradition, and Market Systems
Marginal Analysis
Absolute and Comparative Advantage
Trade and Comparative Advantage
Day
Topic
Assignment
1
Course Introduction
read course description and syllabus
2
Basic Economics Concepts
scarcity, choice, opportunity cost,
Study Guide Chapter 1 questions
Marginal Analysis
“The Inefficiency of Christmas Giving”
by Joel Waldfogel, Economic Review 2003
3
Quiz Chapter 1
Vocabulary Chapter 1 due
4
Economists as scientists
Factors of Production, PPF,
Circular Flow model,
Study Guide Chapter 2 Questions
5
Positive and Normative Statements
Create your own statements
6
Quiz Chapter 2
Vocabulary Chapter 2 due
7
Gains from trade: absolute and
comparative advantage
Study Guide Chapter 3
8
Imports and Exports
9
Quiz Chapter 3
10
Review for Test
11
MC Test 50 questions/50 mins
12
Short Answer Test
Vocabulary Chapter 3 due
Unit 2: Supply and Demand
Chapters: 4) The Market Forces of Supply and Demand
Pg. 65-90
5) Elasticity and Its Application
Pg. 93-115
6) Supply, Demand, and Government Policies
Pg. 117-136
7) Consumers, Producers, and The Efficiency of Markets
Pg. 139-158
8) Application: The Costs of Tax
Pg. 161-176
9) Application: International Trade
Pg. 179-201
TOPICS:
Demand vs. Quantity Demanded
Supply vs. Quantity Demanded
Equilibrium
Surplus
Shortage
Price Discovery Mechanism
Elasticity: Price, Income, Cross of demand
Price Elasticity of supply
Total Revenue Test for determining elasticity
Coefficient Calculations for determining elasticity
Price Ceilings and Floors
Law of Demand
Marginal Utility Theory
Consumer Surplus
Producer Surplus
Efficiency Loss
Day
Topic
Assignment
1
Determinants of Supply and Demand
Study Guide Chapter 4
2
Supply and Demand together
Practice Double Shifting Worksheet
3
Economics Baseball
www.reffonomics.com
4
Quiz Chapter 4
Vocabulary Chapter 4 due
5
Elasticity (Q2-Q1)/[(Q2+Q1)/2]
(P2-P1)/[(P2+P1)/2]
Practice Problems pg 91
6
Income Elasticity and Cross Price
Elasticity
Study Guide Chapter 5
7
Quiz Chapter 5
Vocabulary Chapter 5 Due
8
Price Ceilings/Price Floors
Wall Street “New York Rent” article
Study Guide Chapter 6
9
Tax Incidence and Tax Wedge
Practice Problems pg 115
10
Quiz Chapter 6
Vocabulary Chapter 6 due
11
Consumer and Producer Surplus
Study Guide Chapter 7
12
Market Efficiency and Market Failure
13
In the News “Ticket Scalping”
by: John Tierney
14
Quiz Chapter 7
Vocabulary Chapter 7 due
15
Taxation and Deadweight Loss
Study Guide Chapter 8
16
Practice Problems as a class
17
Quiz Chapter 8
18
Review for Test
19
50 MC questions TEST
20
Short Answers TEST
21
International Trade Packet Review
(take home quiz due)
Vocabulary Chapter 8 due
Study Guide Chapter 9
Vocabulary chapter 9 due
Unit 3: Cost of Production and Theory of the Firm
Chapters: 13) The Costs of Production
Pg. 267-287
14) Firms in Competitive Markets
Pg. 291-312
15) Monopoly
Pg. 315-344
16) Oligopoly
Pg. 349-372
17) Monopolistic Competition
Pg. 377-392
Topics:
Business Organization
Sole Proprietorship
Partnership
Corporation
Profit/Loss
Circular flow diagram
Cost of production
Explicit costs
Implicit costs
Economic vs. Accounting profit
Law of diminishing returns
Cost of production;
Fixed cost
Variable cost
Total cost
Marginal cost
Average fixed cost
Average variable cost
Average total cost
Short Run vs Long Run
Market structure
Perfect competition
Monopolistic competition
Oligopoly
Single price monopoly
Price discriminating monopoly
Barriers to entry
Profit maximization rule; MC= MR
Maximum profit output and price determination model
Perfectly competition
Monopolistic competition
Oligopoly
Pure Monopoly
Allocative and productive efficiency
Monopoly power
Price discrimination
Government regulation
Game theory and strategic behavior
Deadweight loss
Day
Topics
Assignments
1
THEORY OF THE FIRM
Economic Profit vs Accounting Profit
Study Guide Chapter 13
2
ATC, AVC, AFC, MC shapes
3
Short Run and Long Run Cost Curves
4
FYI “Lessons from a Pin Factory” pg 285
5
Quiz Chapter 13
Vocabulary Chapter 13 due
6
Competitive Markets and
Profit Maximization
Study Guide Chapter 14
Practice Problesm pg 287
7
Supply Curve
“Russia is Not Poland, and That’s
too bad” by Michael M Weinstein
8
Quiz Chapter 14
Vocabulary Chapter 14 due
9
Monopolies
Study Guide Chapter 14
10
Welfare Costs and Public Policy
Price Discrimination of Monopolies
“Lets Play Monopoly”
by: Robert J Barro
11
Quiz Chapter 15
Vocabulary Chapter 15 due
12
Oligopoly
Study Guide Chapter 16
13
Game Theory, Prisioners Delima,
Nash Equilibrium
Practice Problems pg 373
14
Practice Problems as a class
www.reffonomics.com power point
15
Quiz Chapter 16
Vocabulary Chapter 16 due
16
Monopolistic Competition
Study Guide Chapter 17
17
Advertising “A TV Season When
Image is Everything” By: Stuart Elliott
18
Wheat Game (perfect competition)
19
Quiz Chapter 17
20
Review for Test
21
50 MC Questions TEST
22
Short Answer TEST
Vocabulary Chapter 17 Due
Unit 4: Factor Markets
Chapters: 18)The Markets for the Factors of Production
Pg. 397-415
19) Earnings and Discrimination
Pg. 417-434
20) Income Inequality and Poverty
Pg. 437-458
21) The Theory of Consumer Choice
Pg. 463-488
Topics:
Marginal Productivity theory of resource demand
Derived demand
Marginal physical product (MPP)
Value of marginal product (VMP)
(Marginal Revue Product)
Marginal Resource Cost
Demand vs quantity demanded of a resource
Productivity
Economic Rent
Rent Seeking Behavior
Profit maximizing rule; MRC=VMP
Least cost rule; MPP/P
Day
Topics
Assignments
1
Labor Markets: Factors of Production
Demand and Supply of Labor
Study Guide Chapter 18
2
Equilibrium and Land/Capital
3
Links Activity (Diminishing Marginal Product)
have students use paper, scissors, tape to make links
and keep adding students to see when diminishing
sets in.
4
Quiz Chapter 18
Vocabulary Chapter 18 due
5
Equilibrium Wages and Determinants
Study Guide Chapter 19
6
Economics of Discrimination
Case Study “The Benefits of Beauty”
pg 422
7
Quiz chapter 19
Vocabulary Chapter 19 due
8
Distribution of Income
Study Guide Chapter 20
9
Government Policies, reduction of Poverty Case Study “The Women’s
Movement and the Income
Distribution” “Income and
Inequality Around the World”
10
Quiz Chapter 20
Vocbaulary Chapter 20 Due
11
Theory of Consumer Choice
Study Guide Chapter 21
12
Quiz Chapter 21
Vocabulary Chapter 21 due
13
Review
14
50 MC Test Questions/ Short Answer
Unit 5:
Public Finance
Chapters: 10) Externalities
Pg. 205-222
11) Public Goods and Common Resources
Pg. 225-241
12) The Design of the Tax System
Pg. 243-264
Topics:
Private Goods
Public Goods
Externalities (spillovers);
Positive and negative
Median voter rule
Lorenz curve
Gini ratio
Coase theorem
Market failure
Public sector failure
Tax incidence
Progressivity;
Progressive
Proportional
Regressive
Tax reform
Flat tax
Marginal private cost vs marginal social cost
Marginal private benefit vs marginal social benefit
Day
Topics
Assignments
1
Externalities and Market Inefficiency
Study Guide Chapter 10
2
Coase Theorem and Pigovian Tax
Case Study “Why is Gasoline
Taxes so Heavily” pg 271
3
Quiz Chapter 10
Vocabulary Chapter 10 due
4
Public Goods and Common Resources
Study Guide Chapter 11
5
“The Singapore Solution”
by: Lester C Thurow
7
Quiz Chapter 11
Vocabulary Due
8
US Government and Taxes
Study Guide Chapter 12
9
Taxes and Efficiency and Equity
Case Study “Horizontal Equity and
the Marriage Tax” pg 258
10
Quiz chapter 12
Vocabulary Chapter 12 Due
11
Review for Test
12
MC 50 Questions/ Short Answer
Teaching Strategies
Outside Readings of the Textbook: Students will be expected to read every chapter, Case
Study, and New article in their Textbook which will give them real world examples and a
broader scope on the issues we deal with daily. The News Paper will be used frequently
so students can apply economics to everyday life.
Power Point Presentations: I will present the material at the beginning of each chapter
and unit for the students to hear and see the information from the teacher. They will be
able to access my power point presentations for the year on my webpage.
Practice Problems: Throughout each unit students will be given the opportunity to work
on AP free-response questions to figure out the answer. It will then be discussed as a
class and students may volunteer to put the answers on board. This is a great learning
technique and it gets them used to the AP format.
On-line resources: A site I often refer to is www.reffonomics.com. It is a great site
where students can read on each topic we will be covering and class and teach themselves
with the appropriate resources. Also the text book has a good website to refer to;
http://www.harcourtcollege.com/econ/mannkiw.
Student Evaluation:
Tests
50%
Units 1, 2, 3, 4, and 5
Quizzes
20%
Chapters 1-20
Paper
10%
“Naked Economics,” summer reading analysis
Vocabulary
10%
Chapters 1-20
In-Class work/participation
10%
free-responses/ study guides