Wallingford Public Schools - HIGH SCHOOL COURSE OUTLINE
Course Title: Advanced Placement Economics
Course Number: 3552
Department: Social Studies
Grade(s): 11-12
Level(s): Advanced Placement
Credit: 1
Course Description
Advanced Placement Economics is a full year course that is designed to prepare students to
take the AP Microeconomics and/or AP Macroeconomics exam(s). One portion of this course
will focus on macroeconomics and will provide students with a thorough understanding of the
principles of economics that apply to an economic system as a whole. A primary emphasis will
be placed on the study of national income and price determination as well as develop familiarity
with economic performance measures, economic growth, and international economics. Another
section of this course will include the study of microeconomics and will provide students with a
thorough understanding of the principles of economics that apply to individual decision makers,
(i.e., consumers and producers). This portion of the course will emphasize the nature and
functions of markets and include the study of the role of government in economics.
Required Instructional Materials
Principles of Economics, N. Gregory Mankiw, SouthWestern Publishers, 2005
• Principles of Economics: Instructors Manuals
(Macro/Micro). Linda Ghent, Thompson Southwestern
• Principles of Economics: Study Guide (Macro/Micro).
David Hakes, Thompson Southwestern
• Principles of Economics: Test Bank (Macro/Micro).
Kugler et.al, Thompson Southwestern
Completion/Revision Date
Approved by Board of Education
on February 27, 2007
Mission Statement of the Curriculum Management Team
The mission of the Social Studies Curriculum Management Team is to provide students with the
opportunity to gain fundamental understanding of history, civics, economics, cultures,
geography, and the social sciences so that they develop into responsible citizens who use
analytical reasoning and historical thinking to make informed decisions about the issues that
face our nation and world today.
Enduring Understandings for the Course
The student will understand that:
Content
• People face trade-offs.
• The cost of something is what you give up to get it.
• Rational people think at the margin.
• People respond to incentives.
AP Economics
Page 1
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•
•
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Trade benefits everyone.
Markets are usually a good way to organize economic activity.
Governments can sometimes improve market outcomes.
A country’s standard of living depends on its ability to produce goods and services.
Prices rise when the government prints too much money.
Society faces a short-run tradeoff between inflation and unemployment.
Skills
Analyzing data is critical for problem solving.
Graphing is fundamental to understanding how variables are related to the world.
Determining linkages/cause and effect relationships is essential.
Manipulating formulas is an important tool in the problem solving process.
Formulating hypotheses based on a variety of economic data and source material
enhances problem solving.
Communicating clearly and effectively with both the written and spoken word is
essential.
**The sequence in which the content of this course will be taught will be left up
to the individual instructors. **
LEARNING STRAND
AP Economics
Page 2
1.0 Critical Thinking and Communication Skills
NOTE: This learning strand should be taught through the integration of the other learning strands included
in this course. It is not meant to be taught in isolation as a separate unit.
ENDURING UNDERSTANDING(S)
The student will understand that:
• Analyzing data is critical for problem
solving.
• Graphing is fundamental to
understanding how variables are
related to the world.
• Determining linkages/cause and effect
relationships is essential.
• Manipulating formulas is an important
tool in the problem solving process.
• Formulating hypotheses based on a
variety of economic data and source
material enhances problem solving.
• Communicating clearly and effectively
with both the written and spoken word
is essential.
ESSENTIAL QUESTION(S)
• How does data contribute to problem
solving?
• How do graphs express ideas that might be
less clear in words or equations?
• What is the significance of cause and effect
relationships?
• How can formulas enhance understanding of
data?
• Why is it important to form and test
hypotheses?
• Why is communicating clearly and effectively
important?
LEARNING OBJECTIVES The student will:
INSTRUCTIONAL SUPPORT MATERIALS
1.1 Analyze data for its relevance to solving
• See other learning strands
problems.
1.2 Express concepts graphically to
SUGGESTED INSTRUCTIONAL STRATEGIES
demonstrate understanding.
• Analyze data/information
1.3 Use Monetary/Fiscal Policy to show
• Research websites
linkages/cause and effect relationships.
• Graph concepts
1.4 Apply formula substitution to facilitate
• Provide solutions to economic problems
problem solving.
• Communicate clearly and effectively in the
1.5 Debate solutions for contemporary
language of economics
economic issues.
• Practice AP open-ended questions
1.6 Support a position with accurate and
relevant information.
SUGGESTED ASSESSMENT METHODS
1.7 Evaluate the validity of information, testing
• Participation
its credibility.
• Tests
1.8 Synthesize data and concepts clearly and
• Projects
effectively on application exercises and
• Problem solving
examinations.
• Graphing
1.9 Use math skills such as determining
averages and medians, ratio and
percentages, index numbers, and nominal
and real values.
LEARNING STRAND
AP Economics
Page 3
2.0 Basic Economic Concepts
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give up
to get it.
• Rational people think at the margin.
• People respond to incentives.
• Trade benefits everyone.
• Markets are usually a good way to
organize economic activity.
• Governments can sometimes improve
market outcomes.
• A country’s standard of living depends on
its ability to produce goods and services.
• Prices rise when the government prints too
much money.
• Society faces a short-run trade-off between
inflation and unemployment.
ESSENTIAL QUESTION(S)
• Why can’t any society produce all the goods
and services its members want?
• What is the effect of opportunity cost on
decision making?
• How can the production possibilities curve
be used to illustrate scarcity, choices, and
opportunity cost?
• What role does efficiency play in production
decisions?
• What is the significance of market
equilibrium in the supply and demand
model?
• How does the concept of elasticity affect the
supply and demand model?
• Why are markets usually a good way to
organize economic activity?
• What is the relationship between money and
inflation?
• How are inflation and unemployment
related?
• How does government taxation policy affect
the supply and demand model?
• How is trade a win-win situation?
LEARNING OBJECTIVES The student will:
2.1 Determine why societies can’t produce
all the goods and services its members
want.
2.2 Assess how opportunity cost affects
decision making.
2.3 Manipulate the production possibilities
curve to illustrate scarcity, choices, and
opportunity cost.
2.4 Analyze the supply and demand model in
terms of its impact on output and prices.
2.5 Apply the concept of elasticity to the
supply and demand model.
2.6 Evaluate why markets maximize
economic well-being.
2.7 Analyze how price floors and price
ceilings affect market outcomes.
2.8 Show how inflation is caused by too
much paper chasing too few goods and
services.
2.9 Analyze the significance of the Phillips
curve.
2.10 Assess how taxes create deadweight
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton, National
Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
AP Economics
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion.
•
Principles of Economics, Study Guide (text)
- Chapter overview / Chapter review
Page 4
losses and lower consumer and producer
surplus.
2.11 Evaluate why trade is a win-win situation.
− The gains of the winners exceed the
losses of the losers.
•
•
notes
- Chapter 3: problems and short answer
questions
- Chapter 7: problems and short answer
questions
- Chapter 9: problems and short answer
questions
Advanced Placement Economics:
Macroeconomics - Student Activities
- Test of Macroeconomic thinking
- Scarcity, Opportunity Cost, and
Production Possibilities Curves
- Demand Curves, Movements Along
Demand Curves, and Shifts in Demand
Curves
- Supply Curves, Movements Along
Supply Curves, and Shifts in Supply
Curves
- Equilibrium Price and Equilibrium
Quantity
AP Economics, (Center for Learning)
- Graphing activity: Demand and Supply
Equilibrium, pgs. 25-28
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 5
LEARNING STRAND
3.0 Measurements of Economic Performance
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give up
to get it.
• People respond to incentives.
• Markets are usually a good way to
organize economic activity.
• Governments can sometimes improve
market outcomes.
• A country’s standard of living depends on
its ability to produce goods and services.
• Prices rise when the government prints
too much money.
ESSENTIAL QUESTION(S)
• What is the significance of the circular-flow
diagram?
• Why is GDP (Gross Domestic Product) such
a significant economic measurement?
• How is GDP calculated?
• What is the difference between real and
nominal variables, and why is that difference
significant?
• Why is the CPI (Consumer Price Index) such
a significant economic measurement?
• How is the CPI calculated?
• What happens when the government prints
too much money? Why?
• Who gains and who loses by inflation?
• How is unemployment determined and
classified?
• How do economists define “full employment?”
LEARNING OBJECTIVES The student will:
3.1 Construct a circular-flow diagram for the
American economy.
3.2 Prove that the total expenditure in the
economy must equal the total income in
the economy.
3.3 Calculate how GDP is measured.
3.4 Distinguish between real GDP and
nominal GDP.
3.5 Determine how the CPI measures the
cost of living.
3.6 Calculate the CPI from economic data.
3.7 Analyze the impact of the printing of
money on price levels.
3.8 Assess who the winners and losers are
during inflationary periods.
3.9 Classify unemployment into categories.
3.10 Distinguish between “full” employment
and employment for all workers.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics-Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics-Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton, National
Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
AP Economics
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion.
• Advanced Placement Economics:
Macroeconomics - Student Activities
- Understanding the Circular Flow of the
Macroeconomy
- All About GDP
- Price Indexes
- Who Is Hurt and Who Is Helped by
Page 6
Unanticipated Inflation?
- Types of Unemployment
• Principles of Economics, Study Guide (text)
- Chapter overview / Chapter review notes
- Chapter 23: problems and short answer
questions
- Chapter 24: problems and short answer
questions
- Chapter 28: problems and short answer
questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 7
LEARNING STRAND
4.0 National Income and Price Determination
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give up
to get it.
• People respond to incentives.
• Governments can sometimes improve
market outcomes.
• A country’s standard of living depends on
its ability to produce goods and services.
ESSENTIAL QUESTION(S)
• What is the significance of the aggregate
demand/aggregate supply model?
• What will cause the aggregate demand curve
to shift to the right or left?
• What is the significance of the short-run
aggregate supply curve being divided into
three ranges?
• How do shifts in aggregate demand affect the
level of output and the price level?
• What will cause the short-run aggregate
supply curve to shift right or left?
• How do shifts in aggregate supply affect the
level of output and the price level?
• How does the multiplier reflect changes in
real GDP?
• How is the multiplier calculated?
• What is the relationship between government
taxation, spending policies, and aggregate
demand?
INSTRUCTIONAL SUPPORT MATERIALS
LEARNING OBJECTIVES The student will:
4.1 Construct an aggregate demand /
• Advanced Placement Economics:
aggregate supply model.
Macroeconomics - Student Activities. John S.
4.2 Determine what would shift both the
Morton, National Council on Economic
aggregate demand and aggregate supply
Education
curves.
• Advanced Placement Economics:
4.3 Evaluate why the three segmented short
Microeconomics - Student Activities. John S.
run aggregate supply curve is an accurate
Morton, National Council on Economic
reflection of economic conditions.
Education
4.4 Manipulate the aggregate demand /
• Advanced Placement Economics: Teacher
aggregate supply model to illustrate short
Resource Manual. John S. Morton, National
run economic fluctuations.
Council on Economic Education
4.5 Analyze how monetary and fiscal policies
• Advanced Placement Economics. Roger
affect aggregate demand and thus the
Richard, Paul G. Trojan. Center for Learning
level of prices and output in the economy.
• Advanced Placement Macroeconomics and
4.6 Calculate the multiplier and analyze how it
Microeconomics exams from previous years
reflects changes in real GDP.
4.7 Compare how the economy in the short run SUGGESTED INSTRUCTIONAL STRATEGIES
differs from the economy in the long run.
• Utilize unit essential questions to encourage
4.8 Assess how shifts in either aggregate
critical thinking and discussion.
demand or aggregate supply can cause
• Advanced Placement Economics:
booms and recessions.
Macroeconomics - Student Activities
− An Introduction to Aggregate Demand
−
AP Economics
An Introduction to Short-Run Aggregate
Page 8
Supply
− Short-Run Equilibrium Price Level and
Output
− Long-Run Aggregate Supply and the
Production Possibilities Curve
− Manipulating the AD/AS Model:
Exogenous Demand and Supply Shocks
• Principles of Economics: Study Guide
− Chapter overview / Chapter review
notes
− Chapter 33: problems and short answer
questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 9
LEARNING STRAND
5.0 Financial Sector
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• People respond to incentives.
• Governments can sometimes improve
market outcomes.
• Prices rise when the government prints
too much money.
ESSENTIAL QUESTION(S)
• How is the money supply measured?
• How do banks help create money (increase
the money supply)?
• How is the money multiplier calculated?
• How are interest rates determined in the
short run (money market)?
• How are interest rates determined in the
long run (market for loanable funds)?
• What is the function of the Federal Reserve
(Fed)?
• What tools does the Fed have at its
disposal to control the supply of money in
the economy?
• Why would the Fed want to pursue an
expansionary monetary policy?
• Why would the Fed want to pursue a
contractionary monetary policy?
• What is the significance between real and
nominal interest rates?
LEARNING OBJECTIVES The student will:
5.1 Determine the characteristics and three
basic functions of money.
5.2 Manipulate the money multiplier to
illustrate how banks help create money in
the economy.
5.3 Construct a money market graph.
5.4 Manipulate the money market graph to
show how interest rates are determined in
the short run.
5.5 Construct a market for loanable funds
graph.
5.6 Manipulate a market for loanable funds
graph to illustrate how interest rates are
determined in the long run.
5.7 Assess the role of the Federal Reserve in
the economy.
5.8 Analyze how the Federal Reserve
expands or contracts the supply of
money.
5.9 Evaluate the relationship between
economic problems and the Federal
Reserve’s decision to either expand or
contract the supply of money.
5.10 Distinguish between real and nominal
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton,
National Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for
Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
AP Economics
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion.
• Advanced Placement Economics:
Macroeconomics - Student Activities
− Money - Evaluate how well items that
have been used as money throughout
Page 10
interest rates.
history would perform in today’s economy.
Rate how well each meets the
characteristics of money.
− The Multiple Expansion of Checkable
Deposits
− Reserve Requirements and the
Multiplier
− Federal Reserve: The Mechanics of
Monetary Policy
− The Federal Reserve: Monetary Policy
and Macroeconomics
• Graph economic problems applicable to both
the money market and the loanable funds
market.
• Principles of Economics: Study Guide
− Chapter overview / Chapter review
notes
− Chapter 29: problems and short
answer questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 11
LEARNING STRAND
6.0 Inflation, Unemployment and Stabilization Policies
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give up
to get it.
• People respond to incentives.
• Governments can sometimes improve
market outcomes.
• Prices rise when the government prints too
much money.
• Society faces a short-run trade-off between
inflation and unemployment.
ESSENTIAL QUESTION(S)
• How do monetary and fiscal policies impact
aggregate demand?
• What is the impact of government deficits
on inflation and unemployment?
• How are price indexes used to measure
price changes in the economy?
• How is the Consumer Price Index (CPI)
computed?
• Who is hurt and who is helped by inflation?
• How do economists classify categories of
unemployment?
• What is the significance of “full
employment”?
• How does the Phillips Curve illustrate the
short-term tradeoff between inflation and
unemployment?
LEARNING OBJECTIVES The student will:
6.1 Analyze how monetary and fiscal policies
impact aggregate demand.
6.2 Assess how government deficits impact
the market for loanable funds, and hence
inflation and unemployment.
6.3 Illustrate how price indexes are used to
measure price changes in the economy.
6.4 Calculate the CPI using economic data.
6.5 Calculate the inflation rate based on the
CPI.
6.6 Evaluate the winners and losers during
inflationary periods.
6.7 Convert the value of dollar figures from
different years.
6.8 Classify unemployed workers into
categories.
6.9 Link full employment with both the
Production Possibilities Curve and the
vertical segment of the short run
aggregate supply curve.
6.10 Analyze the short run tradeoff between
inflation and unemployment.
6.11 Construct both short run and long run
Phillips curves.
6.12 Explain the relationship between the
Phillips curve and the aggregate demand /
aggregate supply model.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton,
National Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for
Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
AP Economics
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to
encourage critical thinking and discussion.
• Advanced Placement Economics:
Macroeconomics - Student Activities
− Monetary and Fiscal Policy: Explore
what effect both monetary and fiscal
policy have on inflation and real output
in the short-run using a graph and
critical thinking questions
Page 12
6.13 Analyze how supply shocks affect the
inflation – unemployment tradeoff.
6.14 Evaluate the costs of reducing inflation.
•
•
− Graphing Monetary and Fiscal Policy
Interactions
− Crowding-Out: A Graphical
Representation
− Discretionary and Automatic Fiscal
Policy
− The Tools of Fiscal Policy
− Two Ways to Analyze Fiscal Policy
− Analyzing the Macroeconomy
Principles of Economics, Study Guide
− Chapter overview / Chapter review
notes
− Chapter 34: problems and short
answer questions
− Chapter 35: problems and short
answer questions
Practice with open-ended questions from
the 2006 AP Economics exam
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 13
LEARNING STRAND
7.0 Economic Growth and Productivity
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• People respond to incentives.
• Governments can sometimes improve
market outcomes.
• A country’s standard of living depends
on its ability to produce goods and
services.
ESSENTIAL QUESTION(S)
• What is the significance of productivity in
economics?
• Why does economic prosperity vary
substantially around the world?
• How can government enhance a nation’s
productivity?
• What is the link between investment and
long-run economic growth?
LEARNING OBJECTIVES The student will:
7.1 Analyze the relationship between
productivity and a country’s standard of
living.
7.2 Analyze why economic growth differs from
country to country based on data.
7.3 Assess the factors that determine a
country’s productivity.
7.4 Evaluate a country’s policies and their
impact on economic growth.
7.5 Demonstrate the link between investment
and long run economic growth.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton,
National Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for
Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to
encourage critical thinking and discussion.
• Principles of Macroeconomics: Instructor’s
Manual
− Chapter 12, Activity 1: The Universal
Replicator – Explore the economic
implications of an imaginary new
technology on economic growth and
change
• Principles of Economics, Study Guide
− Chapter overview / Chapter review
notes
− Chapter 25: problems, short answer
questions and self-test
SUGGESTED ASSESSMENT METHODS
AP Economics
Page 14
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 15
LEARNING STRAND
8.0 Open Economy: International Trade and Finance
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• People respond to incentives.
• Trade benefits everyone.
• Governments can sometimes improve
market outcomes.
ESSENTIAL QUESTION(S)
• What is the link between the market for
loanable funds and the market for foreign
currency exchange?
• Why is the balance of payments accounts a
better measurement than the balance of
trade?
• How are foreign currency exchange rates
determined?
• How does the appreciation/depreciation of a
nation’s currency impact its level of imports
and exports?
• How do monetary and fiscal policies affect
exchange rates?
• How do budget deficits affect the market for
loanable funds and economic growth,
unemployment and the rate of inflation?
LEARNING OBJECTIVES The student will:
8.1 Build a model to explain an open
economy’s trade balance and exchange
rate.
8.2 Analyze the simultaneous equilibrium in
the market for loanable funds and the
market for foreign currency exchange.
8.3 Analyze how foreign currency rates are
determined.
8.4 Evaluate the relationship between the
appreciation/depreciation of a nation’s
currency and its level of imports/exports.
8.5 Show the linkage between monetary and
fiscal policies, the market for loanable
funds, and exchange rates.
8.6 Illustrate the linkage between government
budget deficits, the market for loanable
funds, and the market for foreign currency
exchange.
8.7 Graph the effects of capital flight on the
open economy model.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton, National
Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
AP Economics
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion.
• AP Economics: Macroeconomics, Student
Activities
− Imbalance of Payments
− Exchange Rates
− How Monetary and Fiscal Policies Affect
Exchange Rates
− The International Way of Thinking
Page 16
• Principles of Economics, Study Guide
- Chapter overview / Chapter review notes
- Chapters 31: problems, short answer
questions and self-test
- Chapters 32: problems, short answer
questions and self-test
• 2006 AP Exam: open-ended questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 17
LEARNING STRAND
9.0 The Nature and Function of Product Markets
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• Rational people think at the margin.
• People respond to incentives.
• Markets are usually a good way to
organize economic activity.
• Governments can sometimes improve
market outcomes.
AP Economics
ESSENTIAL QUESTION(S)
• What is the significance of the law of demand?
• What causes the demand curve to shift right or
left?
• What is the significance of the law of supply?
• What causes the supply curve to shift right or
left?
• What is the significance of market equilibrium?
• What is the significance of price elasticity of
demand?
• What is the significance of price elasticity of
supply?
• Why do taxes cause deadweight loss?
• What is the significance of the theory of
consumer choice?
• How do both the indifference curve and
marginal utility represent a consumer’s
preferences?
• How are a consumer’s optimal choices
determined?
• How do changes in income and changes in
prices affect consumer choice?
• How does a firm’s cost of production
determine its behavior?
• What is the significance of the short and long
run production functions?
• How are average total cost and marginal cost
related?
• What is the significance of marginal behavior?
• How do firms determine the optimal level of
output that maximizes profit?
• What is the significance of diminishing
marginal returns?
• Why are firms more concerned with economic
profits rather than accounting profits?
• How do perfectly competitive firms make
output and pricing decisions?
• How do perfectly competitive firms decide
whether to shut down in the short-run or not?
• How do perfectly competitive firms make longrun decisions to exit or enter a market?
• How do monopolies make output and pricing
decisions?
• Why are monopolies inefficient?
Page 18
• How do oligopolies make output and pricing
decisions?
• Why do most cartels ultimately fail at
collusion?
• What is the relationship between game theory
and the strategic behavior of oligopolies?
• How do monopolistic competitors make output
and pricing decisions?
• In the long-run equilibrium, why do
monopolistic competitors make zero profit?
LEARNING OBJECTIVES The student will:
9.1 Shift supply and demand curves based
on their determinants.
9.2 Interpret the significance of market
equilibrium.
9.3 Analyze the significance of elasticity on
supply and demand and market
equilibrium.
9.4 Graph consumer and producer surplus
and market efficiency.
9.5 Analyze the effect of taxes on market
efficiency.
9.6 Graph a consumer’s budget constraint.
9.7 Demonstrate the relationship between
the indifference curve and the marginal
rate of substitution.
9.8 Analyze how a consumer’s optimal
choices are determined.
9.9 Analyze the relationship between a firm’s
cost of production and its pricing and
output decisions.
9.10 Compare short and long-run production
functions.
9.11 Analyze the significance of marginal
behavior.
9.12 Examine the significance of diminishing
marginal returns.
9.13 Distinguish between accounting versus
economic profits.
9.14 Determine how perfectly competitive
firms maximize profit.
9.15 Predict why firms decide to shut down in
the short-run.
9.16 Compare and contrast firm and market
behaviors in short-run and long-run
equilibriums.
9.17 Determine why perfectly competitive
firms make long-run decisions to exit or
enter a market.
AP Economics
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John S.
Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton, National
Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion
• Advanced Placement Economics:
Microeconomics, Student Guide
- Reasons for Changes in Demand
- Demand Curves, Movements Along
Demand Curves and Shifts in Demand
Curves
- Reasons for Changes in Supply
- Supply Curves, Movements Along Supply
Curves, and Shifts in Supply Curves
- Equilibrium Price and Equilibrium Quantity
- Shifts in Supply and Demand
- How Markets Allocate Resources
- Elasticity: An Introduction
- Applying Elasticity to the Real World
- Pricing Problems
- Maximum and Minimum Price Controls
- Excise Taxes
- Why is a Demand Curve Downward
Sloping?
Page 19
9.18 Analyze how monopolies make pricing
and output decisions.
9.19 Demonstrate why monopolies are
inefficient.
9.20 Analyze how oligopolies make pricing
and output decisions.
9.21 Illustrate the linkage between game
theory and the strategic behavior of
oligopolies.
9.22 Analyze how monopolistic competitors
make pricing and output decisions.
9.23 Determine why monopolistic competitors
make zero profit in the long run.
9.24 Graph the pricing and output decision
making of perfect competitors,
monopolies, oligopolies, and
monopolistic competitors.
• Principles of Microeconomics: Instructor’s
Manual
- Chapter 13: Activity 1 - Growing Rice On
a Chalkboard
- Chapter 13: Activity 2 - Intensive
Production
- Chapter 13: Activity 3 - Marginal Grades
• Principles of Economics, Study Guide
- Chapter overview / Chapter review notes
- Chapter 13: problems and short answer
questions
- Chapter 14: problems and short answer
questions
- Chapter 15: problems and short answer
questions
- Chapter 16: problems and short answer
questions
- Chapter 17: problems and short answer
questions
- Chapter 22: problems and short answer
questions
• Advanced Placement Economics:
Microeconomics: Student Activities
- Different Types of Market Structures
- Costs of the Individual Firm
- An Introduction to Perfect Competition
- Costs and Competitive Market Supply
(Perfect Competition)
- Short-Run and Long-Run Competitive
Equilibrium
- Graphing Perfect Competition
- Marginal Revenue for an Imperfect
Competitor
- Pure Monopoly
- Monopoly Pricing
- Regulating Monopoly
- A Quick Review of Perfect Competition
and Monopoly
- Monopolistic Competition
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
AP Economics
Page 20
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 21
LEARNING STRAND
10.0 Factor Markets
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• Rational people think at the margin.
• People respond to incentives.
• Markets are usually a good way to
organize economic activity.
• Governments can sometimes improve
market outcomes.
ESSENTIAL QUESTION(S)
• What is the significance of derived factor
demand?
• How do firms decide whether to continue to
hire factors of production or not?
• How do firms maximize profit in the factor
market?
• What is the significance of market
equilibrium in the labor market?
• How are the factors of production linked?
• What should government policy be in
addressing the problem of economic
inequality?
LEARNING OBJECTIVES The student will:
10.1 Examine the relationship between factor
markets and the concept of derived
demand.
10.2 Analyze how firms maximize profit in
factor markets.
10.3 Determine how firms decide on the
number of workers to hire.
10.4 Graph and explain the significance of
market equilibrium in the labor market.
10.5 Analyze government policy options in
addressing the problem of economic
inequality.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton,
National Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for
Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to encourage
critical thinking and discussion
• AP Economics: Microeconomics, Student
Activities
- The Derived Demand for a Resource
- How Many Workers Should Be Hired?
- The Only (Yo-Yo) Game in Town
- Factor Market Pricing
- How Wages Are Determined in
Competitive Labor Markets
- The Effects of Unions on Wages and
Employment in Competitive and
AP Economics
Page 22
•
Monopsonistic Labor Markets
Principles of Economics, Study Guide
- Chapter 18: problems and short
answer questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 23
LEARNING STRAND
11.0 Market Failure and the Role of Government
ENDURING UNDERSTANDING(S)
The student will understand that:
• People face trade-offs.
• The cost of something is what you give
up to get it.
• People respond to incentives.
• Markets are usually a good way to
organize economic activity.
• Governments can sometimes improve
market outcomes.
ESSENTIAL QUESTION(S)
• Why do markets sometimes fail?
• Why do markets overproduce goods that
create negative externalities?
• Why do markets underproduce goods that
create positive externalities?
• Why must government provide public
goods?
• How can public policy be implemented to
promote competition?
• How can government taxing and spending
policies change a society’s distribution of
income?
LEARNING OBJECTIVES The student will:
11.1 Assess why markets sometimes fail.
11.2 Analyze the impact of negative
externalities on market outcomes.
11.3 Analyze the impact of positive
externalities on market outcomes.
11.4 Examine why private markets fail to
provide public goods.
11.5 Analyze how public policy can be
implemented to promote competition.
11.6 Determine how government taxing and
spending policies impact the
distribution of income.
INSTRUCTIONAL SUPPORT MATERIALS
• Advanced Placement Economics:
Macroeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics:
Microeconomics - Student Activities. John
S. Morton, National Council on Economic
Education
• Advanced Placement Economics: Teacher
Resource Manual. John S. Morton,
National Council on Economic Education
• Advanced Placement Economics. Roger
Richard, Paul G. Trojan. Center for
Learning
• Advanced Placement Macroeconomics and
Microeconomics exams from previous years
SUGGESTED INSTRUCTIONAL STRATEGIES
• Utilize unit essential questions to
encourage critical thinking and discussion
• AP Economics: Microeconomics, Student
Activities
- Private or Public? Public Goods &
Services
- Private vs. Public
- Externalities
- Private or Public? The Coase
Theorem
- Economic Efficiency and the
Optimum Amount of Pollution
Cleanup
AP Economics
Page 24
•
•
Principles of Economics: Microeconomics,
Instructors Guide
- Chapter 20: Activity 1- What Do You
Need to Get By?
Principles of Economics, Study Guide
- Chapter 21: problems and short
answer questions
SUGGESTED ASSESSMENT METHODS
• Homework
- Concept activities
- Practice problems
- Short answer questions
• Participation
- Response to/asking of questions
• Exams
- Multiple choice
- Critical thinking questions
• AP Exams
- Open-ended questions
• Graphing
AP Economics
Page 25