Advanced Placement (AP) Microeconomics
Autumn 2014
Mr. Rust, Room 520, Midland High School
AP Microeconomics is a course formulated to teach students to be aware of important concepts related to the functioning of
the individual firm, or business entity, in the larger economy. Microeconomics is important because it allows students to learn
how to think, plan, and rationalize decisions using cost-benefit analysis, complex analysis, and use graphs and other visuals to
explain their decision-making processes to others.
Textbook:
McConnell, C.R. & Brue, S.L. (2002). Economics: Principles, Problems, and Policies – Fifteenth Edition. Boston: McGraw-Hill
Irwin.
 There is a class set of textbooks, with each student per period being assigned a certain textbook.
 Of the remaining textbooks that are in good condition, a select number may be checked out on a first-come, firstserved basis.
Additional resources:
http://apcentral.collegeboard.com/apc/Controller.jpf
https://apstudent.collegeboard.org/apcourse/ap-microeconomics
https://apstudent.collegeboard.org/apcourse/ap-microeconomics/exam-practice
The exam is May 15, 2015 at noon. Be there.
https://apstudent.collegeboard.org/apcourse/ap-microeconomics/exam-tips
http://coe.jmu.edu/learningtoolbox/cornellnotes.html
We are an AVID campus and take Cornell notes. All the time. For a grade. Accept it.
Student Evaluation:
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Daily Grades = 40%
o Daily grades primarily consist of Bellringer assignments done during class. Bellringers are turned in on the
last day of every week (usually Friday) unless there are extenuating circumstances.
o Students who are absent do not have to make up the Bellringers for those days.
 However, you can get a bad grade if you were only present for one or two Bellringers during a week
and you did poorly on them, so you may complete the Bellringers for the day(s) you were absent to
help pad your grade.
 If you are absent for a Bellringer, write that you were absent for that Bellringer at the top of your
Bellringer page before you turn it in on the last day of the week.
o Two days after Bellringers are turned in a substitute assignment will have to be done for credit. This is to
prevent cheating.
Major Grades = 60%
o The tests consist of a multiple choice section (75%) and a math/graphing/free response section (25%).
o Multiple choice questions will come directly from the notes, AP practice questions, and final exam questions.
o Students will receive AP practice questions before the test. Some of them will be on the test. Some will not.
o Toward the end of each six weeks there will be a Notes Grade that counts as a test grade. We take Cornell
notes in AP Economics. No exceptions. For 100% on your Notes Grade, you must have Cornell note format
and key points and summaries.
Retakes, when offered, can earn up to 80% credit. This 80% is achieved by multiplying retake raw grade by .8
o Retakes will occur during lunch only. There is not enough time to take an AP Economics test between 8:00
AM and 8:25 AM.
 Only in the most extenuating of circumstances will any exception to this rule be considered.
All students will be assumed to be taking the AP Microeconomics and Macroeconomics exams in May 2015. All AP
test prep assigned in class will be for a grade for all students.
Rules and Expectations:
1.) All students should respect classmates, teachers, and guests to the classroom at all times.
2.) Students should not cheat, ever. Honesty counts.
3.) All school rules regarding cell phones, dress code, food and drink, and personal behavior are always in effect.
4.) Do your own work when you’re supposed to do it. Late work will lose credit fast.
5.) Treat others as you would like to be treated.
Tutorial Times:
Tutorials and make-up opportunities for missed assignments are held in Room 521 before school, from 8:00 to 8:25 AM, and
over lunch. For other times, please contact Mr. Rust to schedule a meeting.
Unit 1: Basic Economic Concepts (4 ½ weeks)
Chapter 1: The Nature and Method of Economics (p. 3-19)
Chapter 2: The Economizing Problem (p. 22-35)
Chapter 3: Individual Markets (p. 40-55)
Chapter 6: The United States and the Global Economy (p. 93-109)
Chapter 20: Supply and Demand (p. 374-390)
Chapter 21: Consumer Behavior and Utility Maximization (p. 394-405).
Date Concepts/Information Learned
Assignment
August 27-28
Course Overview/Classroom Rules
August 29
Introduction, Why We Graph
Read p. 2, 15-19
Answer questions #3-4 on page 20.
September 2-3
Economic Way of Thinking
Read p. 3-13.
Answer questions #7, 9 on page 16.
September 4-5
Scarcity, Production Possibilities Curve,
Implicit and Explicit Costs
Read p. 22-33, 36. Define terms and
concepts up through economic system in
your notes (p. 37). Answer # 4, 5, and 7
on p. 38.
September 8
Economic Systems Read p. 34-35.
Define terms and concepts in your notes.
Answer #15-17 on p. 38.
September 9
Review, Quiz?
September 10-11
Comparative and Absolute Advantage
Read p. 98-101. Define terms and
concepts.
September 12-19
Supply & Demand
Marginal analysis
Income effect
Substitution effect
Diminishing marginal utility
Consumer surplus
Read Chapter 3. Define terms.
Answer # 1-6 on p. 56-57.
September 22-25
Price Elasticity of Demand
Total Revenue test
Calculating Elasticity Coefficients
Income Elasticity of Demand
Cross Elasticity of Demand
Read p. 374-386. Define terms. Answer #
5-7, 9 on p. 392.
September 26
Working on Graphs
Review for Test
September 29
Unit 1 Exam
Unit 2: Nature and Function of Product Markets; Perfect Competition (2 ½ weeks)
Chapter 22: The Costs of Production (p. 415-434)
Chapter 23: Pure Competition (p. 437-460)
Date Concepts/Information Learned
September 30
Market Structure Overview
Product Differentiation
Assignment
Read p. 437-438. Assignment on product
differentiation at end of class.
October 1-7
Costs
Diminishing Marginal Returns
Normal profits
Economic profits
Long Run/Short Run
Costs of Production (ATC, AVC, MC, AFC)
Read Chapter 22. Define terms and
concepts. Answer #1-6 on p. 434-435.
October 8-13
Revenue, cost, profit
Perfect Competition
Profit, Loss, Break-Even, Shut Down
Long Run Equilibrium
Productive Efficiency
Allocative Efficiency
LRAC and SRAC
Economies and Diseconomies of Scale
Read p. 426-460 (Last half of Chapter 2
and all of Chapter 3). Define terms and
concepts. Answer #3-5 on p. 460-461.
Quiz likely.
October 14
Review for Unit 2 exam
October 15
Unit 2 Exam
Unit 3: Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly (2 ½ weeks)
Chapter 24: Pure Monopoly (p. 463-483)
Chapter 25: Monopolistic Competition and Oligopoly (p. 486-508)
Date Concepts/Information Learned
Assignment
October 16-17
Monopoly
Downward sloping demand curve
Consumer and producer surplus
Read p. 463-472. Define terms and
concepts.
October 20-24
Regulating Monopoly
Socially Optimal Price
Fair-Return Price
Price Discrimination
Read p. 472-483. Define terms and
concepts. Answer # 2-3, 5-8 on p. 483484.
October 27
Quiz on Monopolies
October 28-29
Monopolistic Competition
Read p. 486-493. Define terms and
concepts.
October 30-31
Oligopoly
Game Theory
Kinked Demand Curve
November 3
Review
November 4
Unit 3 Exam
Read p. 493-508. Define terms and
concepts. Answer #1, 4-8 on p. 508-509.
Unit 4: Factor Markets (2 weeks)
Chapter 2: The Economizing Problem (p. 34-35)
Chapter 27: The Demand for Resources (p. 532-547)
Chapter 28: Wage Determination (p. 550-570)
Chapter 29: Rent, Interest, and Profit (p. 572-585)
Date Concepts/Information Learned
Assignment
November 5
Circular Flow of Economic Activity review
Read p. 34-35.
November 6-10
Derived Demand
MRC = MRP
Least Cost/Profit Maximizing
Combination of Resources
Read Chapter 27. Define terms and
concepts. Answer #1-4 on p. 548.
November 11-13
Wage Discovery in Competitive Markets
Role of Unions
Minimum Wage Argument
Distribution of Income
Read p. 550-557, 562-563. Define terms
and concepts.
November 14
Economic Rent
Read p. 572-576. Define terms and
concepts. Answer #1-3a-d on p. 585.
November 17
Review
November 18
Unit 4 Exam
Unit 5: Market Failure and the Role of Government (3 weeks)
Chapter 5: The U.S. Economy (p. 73-91)
Chapter 30: Government and Market Failure (p. 588-608)
Chapter 31: Public Choice Theory and the Economics of Taxation (p. 611-628)
Date Concepts/Information Learned
Assignment
November 19-21
Role of Government
Public Goods
Read p. 588-592.
Define terms and concepts.
November 24
Externalities
Coase Theorem
Marginal Analysis
Read p. 592-608. Define terms and
concepts. Answer #1-6 on p. 608-609.
Market Failure
Public Goods
Read p. 80-82. Political assignment.
HAPPY THANKSGIVING!!!
December 1-3
December 4
Taxes
December 5
Review
December 8
Unit 5 Exam
Read p. 619-620. Political assignment.
Post Unit 5: Semester Review, Make-Up Time, Link to Macroeconomics (Spring Semester)
December 9-15
Review for Final Exam
December 16-19
Final Exam Week