Advanced Placement (AP) Microeconomics
Autumn 2015
Mr. Rust, Room 521, 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:
Bade, R. & Parkin, M. (2015). Foundations of Economics – Seventh Edition. Boston: Pearson.
 There is a class set of textbooks, with each student per period being assigned a certain textbook.
 No books will be checked out. All students will have online access to textbook materials.
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 13, 2016. 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 2016. 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: Getting Started (p. 1-30)
Chapter 2: The U.S. and Global Economies (p. 31-56)
Chapter 3: The Economic Problem (p. 57-80)
Chapter 13: Consumer Choice and Demand (p. 315-342)
Chapter 6: Efficiency and Fairness of Markets (p. 137-166)
Unit 1.5: Supply and Demand
Chapter 4: Demand and Supply (p. 81-110)
Chapter 7: Government Actions in Markets (p. 167-188)
Chapter 5: Elasticities of Demand and Supply (p. 111-136)
Date Concepts/Information Learned
August 26
Course Overview/Classroom Rules
August 27
Introduction, Why We Graph, Ceteris Paribus
August 28
Economic Way of Thinking
September 1-3
Scarcity, Production Possibilities Curve,
Implicit and Explicit Costs
September 4, 8
Economic Systems
September 9
Review, Quiz?
September 10-11
Comparative and Absolute Advantage
September 14-18
Supply & Demand
Marginal analysis
Income effect
Substitution effect
Diminishing marginal utility
Consumer surplus
September 21-25
Price Elasticity of Demand
Total Revenue test
Calculating Elasticity Coefficients
Income Elasticity of Demand
Cross Elasticity of Demand
September 28
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 14: Production and Cost (p. 343-370)
Chapter 15: Perfect Competition (p. 371-398)
Date Concepts/Information Learned
September 30
Market Structure Overview
Product Differentiation
October 1-7
Costs
Diminishing Marginal Returns
Normal profits
Economic profits
Long Run/Short Run
Costs of Production (ATC, AVC, MC, AFC)
October 8-14
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
October 15
Review for Unit 2 exam
October 16
Unit 2 Exam
Unit 3: Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly (2 ½ weeks)
Chapter 16: Monopoly (p. 399-430)
Chapter 17: Monopolistic Competition (p. 431-454)
Chapter 18: Oligopoly (p. 455-482)
Date Concepts/Information Learned
October 19-20
Monopoly
Downward sloping demand curve
Consumer and producer surplus
October 21-23
Regulating Monopoly
Socially Optimal Price
Fair-Return Price
Price Discrimination
October 26
Quiz on Monopolies
October 27-30
Monopolistic Competition
Long Run Equilibrium in Monopolistic Competition
November 1-4
Oligopoly
Cartel
Game Theory
Herfindahl Index
Kinked Demand Curve
November 5
Review
November 6
Unit 3 Exam
Unit 4: Factor Markets (2 weeks)
Chapter 19: Markets for Factors of Production (p. 483-507)
Date Concepts/Information Learned
November 9
Circular Flow of Economic Activity review
November 10-12
Derived Demand
MRC = MRP
Least Cost/Profit Maximizing
Combination of Resources
MRP in perfectly competitive markets vs. imperfectly competitive markets
November 13-17
Wage Discovery in Competitive Markets
Role of Unions
Monopsony
Minimum Wage Argument
Distribution of Income
November 18
Economic Rent
November 19
Review
November 20
Unit 4 Exam
HAPPY THANKSGIVING!!!
Unit 5: Market Failure and the Role of Government (3 weeks)
Chapter 7: Government Actions in Markets (p. 167-188)
Chapter 8: Taxes (p. 189-212)
Chapter 10: Externalities (p. 241-264)
Chapter 11: Public Goods and Common Resources (p. 265-290)
Chapter 12: Markets with Private Information (p. 291-314)
Date Concepts/Information Learned
November 30
Role of Government
Public Goods
December 1-2
Externalities
Market for Externality Rights
Coase Theorem
Marginal Analysis
December 3-4
Market Failure
Public Goods
December 7
Taxes
Tax Incidence
December 8
Review
December 9
Unit 5 Exam
Post Unit 5: Semester Review, Make-Up Time, Link to Macroeconomics (Spring Semester)
December 9-14
Review for Final Exam
December 15-18
Final Exam Week