AP ECONOMICS
Instructor
Mr. Robert Hart
Seneca High School
Ph: 824-3400 Ext 5538
Course Overview:
This course is designed to be the equivalent of an introductory college course in
microeconomics. The course will emphasize both content and style intended to prepare
students for the national advanced placement exam. Significant use of mathematical models
will be employed to analyze the market process, business organization, and decision-making.
Students will apply economic strategies, business reasoning, and demonstrate the fundamental
principles of economics. This course is designed for advanced students with at least a "B"
average in prior social studies classes that are prepared to do a significant amount of
independent work.
Unit I – Fundamentals
Learning Outcomes = 10 Class Periods
Draw, Graph, Label (Circular Flow Charts, Production Possibilities)
Problem and Application Questions (Mankiw Ch 1-3)
Calculate (Comparative Advantage)
Chapter 1 - Introduction
Vocab
Scarcity
Economics
Efficiency
Equity
Opportunity Cost
Marginal Changes
Externality
Market Power
Applications
4 Principals of Individual Decision Making
1) People face tradeoffs
2) Cost of something is what you give up
3) Rational People think at the margins
4) People respond to incentives
3 Principals Concerning Economic Interaction
1) Trade can make everyone better off
2) Markets are usually a good way to organize economic activity
3) Governments can sometimes improve market outcomes
Assignments
P 16-17 # 1-12
Chapter 2 – Economic Thinking
Vocab
Circular Flow Diagram
Factors of Production
Markets For Goods & Services
Market For Factors of Prod.
Efficient
Microeconomics
Macroeconomics
Positive Statements
Normative Statements
Production Possibility Frontier
Applications
Circular Flow Diagram – Interpreting and Graphing
Production Possibilities Frontier – Interpreting and Graphing
Two Types of Economic Fields
Differentiating Positive Versus Normative Analysis
Graph Farmer Versus Rancher on Frontiers (Mankiw)
Assignments
p 35 # 1-7
Chapter 3 – Gains From Trade
Vocab
Absolute Advantage
Opportunity Cost
Comparative Advantage
Imports
Exports
Applications
Production Possibilities
Principle of Comparative Advantage
Specialization and Trade
Absolute Advantage
Opportunity Cost and Comparative Advantage
Should the U.S. Trade With Other Countries
Assignments
P 59 – 60 #1-9
Unit II – Supply and Demand: How Markets Work
Learning Outcomes = 17 Class Periods
Draw, Graph, Label (Shifts in Demand / Supply)
(Elastic & Inelastic Demand / Supply)
(Price Floor & Price Ceiling)
(Effect of Taxation)
(Surplus & Shortage)
Problem and Application Questions (Mankiw Ch 4 – 6)
Calculate
(Coefficients of Elasticity of Demand)
(Coefficients of Elasticity of Supply)
Chapter 4 – Market Forces
Vocab
Perfectly Competitive Mark.
Market
Competitive Market
Monopoly
Oligopoly
Monopolistically Competitive
Quantity Demanded
Law of Demand
Normal Good
Inferior Good
Substitutes
Complements
Demand Schedule
Ceteris Paribus
Quantity Supplied
Positively Related
Law of Supply
Supply Schedule
Supply Curve
Equilibrium
Equilibrium Price
Equilibrium Quantity
Surplus
Shortage
Applications
Competitive Markets Demand
Competition: Perfect and Otherwise
What Determines Demand (Price/Income)
1. Price
2. Income
3. Related Goods
4. Tastes
5. Expectations
Demand Schedule and the Demand Curve
Centeris Paribus
Market Demand versus Individual Demand
Shifts in the Demand Curve
Competitive Markets Supply
What Determines Quantity on Individual Supplies
1. Price
2. Input Prices
3. Technology
4. Expectations
5. Schedule and Curve
Market Supply versus Individual Supply
Shifts in the Supply Curve
Equilibrium
Shifts in Curves versus Movements along Curves
Assignments
P 90 – 91 #1-3
P91 #4-11
Chapter 5 – Elasticity and Its Application
Vocab
Applications
Elasticity
Elasticity of Demand
Price Elasticity of Demand
1. Determinants
Elastic
2. Calculation
Inelastic
3. Consequences
Midpoint Method
Elasticity of Supply
Total Revenue
1. Determinants
Income Elasticity of Demand
2. Calculation
Normal Goods
3. Consequence
Inferior Goods
Cross Elasticity of Demand
Price Elasticity of Supply
Cross Price Elasticity of Demand
Assignments
P 115-116 #1-12
Chapter 6 – Government Policies
Vocab
Price Ceiling
Price Floor
Not Binding
Binding Constraint
Tax Incidence
Applications
Controls on Prices
1. Price Ceilings
2. Price Floors
Taxes
Elasticity and Tax incidence
Assignments
P 136-137 #1-11
Unit III – Markets and Welfare
Learning Outcomes = 11 Class Periods
Draw, Graph, Label and Interpret
(Market Models with Consumer, Producers and Total Surplus)
(Deadweight Loss of Taxation)
(Changes in Surplus due to Exporting)
(Changes in Surplus due to Importing)
(Changes in Surplus due to Tariff and Quota)
Problem and Application Questions (Mankiw Ch 7 – 9)
Chapter 7 – Surplus/Efficiency
Vocab
Welfare Economics
Willingness To Pay
Consumer Surplus
Marginal Buyer
Cost
Producer Surplus
Marginal Seller
Total Surplus
Efficiency
Equity
Applications
Consumer Surplus
Producer Surplus
Market Efficiency
Assignments
P 158 – 159 # 1-7
Chapter 8 – Costs of Taxation
Vocab
Deadweight Loss
Applications
Deadweight Loss of Taxation
Affects on Market Participants
Welfare with and without Taxation
Determinants of Dead Weight Loss
Assignments
P 176-177 #1-10
Chapter 9 – International Trade
Vocab
World Price
Price Takers
Tariff
Import Quota
Applications
Gains and Losses of Exporting
Gains and Losses of Importing
Effects of Tariff
Arguing Trade Agreements
Assignments
P 200-201 #1-12
Unit IV – Economics of the Public Sector
Learning Outcomes = 15 Class Periods
Draw, Graph, Label and Interpret
(Positive/Negative Externalities in Production)
(Positive/Negative Externalities in Consumption)
(Changes in Surplus due to Exporting)
(Changes in Surplus due to Importing)
(Changes in Surplus due to Tariff and Quota)
Problem and Application Questions (Mankiw Ch 10-12)
Chapter 10 – Impact of Externalities
Vocab
Externality
Positive Externality
Negative Externality
Internalizing the Externality
Technology Spillover
Technology Policy
Coase Theorem
Command and Control Policies
Market Based Policies
Pigovian Taxes
Applications
Welfare Economics
Externalities in Production
Externalities in Consumption
Coase Theorem
Externalities and Policies
1. Regulation
2. Taxes
3. Subsidies
4. Permits
Assignments
P 222-223 #1-8
Chapter 11 – Public Goods and Common Resources
Vocab
Excludable
Rival
Private Goods
Public Goods
Common Resources
Free Rider
Cost-Benefit Analysis
Property Rights
Tragedy of the Commons
Applications
Public Goods/Private Goods
Common Resources
Importance of Property Rights
Assignments
P240 – 241 # 1 - 8
Chapter 12 – Tax System
Vocab
Tax Liability
Marginal Tax Rate
Payroll Tax
Social Insurance Tax
Excise Tax
Transfer Payment
Budget Surplus
Budget Deficit
Average Tax Rate
Lump-Sum Tax
Benefits Principle
Ability to Pay Principle
Vertical Equity
Horizontal Equity
Proportional
Regressive
Progressive
Quintiles
Flat Tax
Applications
Financial Overview U.S.
Federal, State, Local
Taxes and Efficiency
Taxes and Equity
Trade off Between Equity and Efficiency
Assignments
P 264 – 265 # 1 - 12
Unit V – Business Firms and Competitive Markets
Learning Outcomes = 13 Class Periods
Draw, Graph, Label Interpret, and
Calculate
(TC, FC, VC, AFC, AVC, ATC, MC, TR, AR, MR)
Problem and Application Questions (Mankiw Ch 13-14)
Must be able to distinguish between Accounting and Economic Profit
Must be able to distinguish between Short-run and Long-run decision making
Chapter 13 – Costs of Production
Vocab
Industrial Organization
Total Revenue
Total Cost
Profit
Explicit Costs
Implicit Costs
Economic Profit
Accounting Profit
Production Function
Marginal Product
Diminishing Marginal Product
Fixed Costs
Variable Costs
Average Total Cost
Average Fixed Cost
Average Fixed Variable Costs
Marginal Costs
Efficient Scale
Economies of Scale
Diseconomies of Scale
Constant Returns to Scale
Applications
Production and Costs
Various Measures of Costs
Cost Curves
Firm Decision Making
Costs in the Short Run
Costs in the Long Run
Assignments
P 286 – 287 # 1 - 10
Chapter 14 – Competition and the Market Place
Vocab
Market Power
Competitive Market
Average Revenue
Marginal Revenue
Shut Down
Exit
Sunk Cost
Marginal Firm
Applications
Competitive Markets
Profit Maximization and the Supply Curve
Supply Curve in a Competitive Market
Measures of Cost
TC, FC, VC, AFC, AVC, ATC, MC
Revenue for a Competitive Firm
TR, AR, MR
Assignments
P 312-313 #1-12
Unit VI – Business Firms and Other Market Structures
Learning Outcomes = 12 Class Periods
Draw, Graph, Label, and Interpret
(Demand, MR, MC, ATC, Deadweight Loss for Monopoly)
(Demand, MR, MC, ATC, Deadweight Loss for Monopolistic Comp.)
(Determine the Presence/Absence of Nash Equilibrium in a Duopoly)
Problem and Application Questions (Mankiw Ch 15-17)
Chapter 15 – Monopoly
Vocab
Price Taker
Price Maker
Monopoly
Natural Monopoly
Synergies
Price Discrimination
Arbitrage
Applications
Monopoly Markets
Production and Pricing Decisions
Profit Maximation
Welfare Cost of Monopoly
Public Policy toward Monopoly
Price Discrimination
Assignments
P 344-345 #1-16
Chapter 16 – Oligopoly
Vocab
Imperfect Competition
Oligopoly
Monopolistic Competition
Duopoly
Cartel
Collusion
Nash Equilibrium
Game Theory
Prisoner’s Dilemma
Dominant Strategy
Fair Trade
Tying
Predatory Pricing
Applications
Markets with only a few Sellers
Equilibrium for an Oligopoly
Market Size Affects Outcome
Game Theory and Economics of Cooperation
Public Policy toward Oligopolies
Assignments
P 373 – 375 # 1 - 11
Chapter 17 – Monopolistic Competition
Vocab
Monopolistic Competition
Many Sellers
Product Differential
Free Entry
Excess Capacity
Production-Variety Externality
Business-Stealing Externality
Applications
Competition with Differentiated Products
Advertising
Economic Welfare with Monopolistic Competition
Assignments
P 392-393 #1-12
Unit VII – Economics of Labor Markets
Learning Outcomes = 8 Class Periods
Draw, Graph, Label, and Interpret
(Labor Markets Under Several Different Conditions)
(Must be able to Calculate MRP&MRC)
Problem and Application Questions (Mankiw Ch 18)
Chapter 18 – Markets for Factors of Production
Vocab
Factors of Production
Derived Demand
Profit Maximizing
Production Function
Marginal Product of Labor
Diminishing Marginal Product
Value of Marginal Product
Physical Capital
Human Capital
Technology Capital
Applications
Demand for Labor
Supply of Labor
Equilibrium in the Labor Market
Other Factors of Production
Demand for Capital
Demand for Land
Wages
Labor Unions
Assignments
P 415-416 #1-10
End Of Semester Assessment Sequence
Review:
1 Day
Comprehensive Final: 1 Day
Essay Final:
1 Day
Final Course Grade
First Marking Period
Second Marking Period
Course Final
Total
Grading Scale
93 – 100%
85 – 92
77 – 84
70 – 76
75 – 0
A
B
C
D
F
40 %
40%
20%
100
55 and Stay Alive
If a student turns in the assignment or takes the assessment, you are guaranteed a 55%. While
a 55% is still a failing grade, mathematically you are not finished and may still pull your grade
up. However, failure to turn something in or take the assessment will result in a 0%
Student Evaluation:
Level
Marking Percentage
Level 1
Concept Test, Term Assessments, and
Economic Projects / simulations
70%
Level 2
Reading Quizzes, Daily Quizzes, NewsArticles, Discussions, Group Participation,
and Presentations
20%
Level 3
Homework and other work done outside
of class for which student authenticity can
not be verified.
10%
TOTAL
100%
You are encouraged to keep track of your own grades during
the grading period. Any discrepancies between your records
and information provided in progress reports should be
discussed immediately. It is also suggested that all graded
assignments (Level 1 & 2) be returned and filed in your class
assessment folder for future reference.
Missed Classes
MAKE UP WORK IS YOUR RESPONSIBILITY. I will not track you down and beg for work
missed. Be sure to read your student handbook about absences, as well as, suspensions. I am
available in the morning. It may be wise to make use of homeroom time to meet with me so
that “WE” can catch you up.
Notes
This is a senior level course and notes, as well as, formulas and graphs are part of the routine.
You should be taking notes and keeping a notebook for this class.
Environment
I prefer a relaxed environment with two way respect and suspect you do to. However, we are
here for a reason and I expect us to work together to achieve our purpose. Whether that
purpose is to get through and graduate, go to college, or take the AP National Exam the
classroom expectations are the same. You need to be respectful of yourself, your fellow
students and the teacher. You need to be on time, ready to participate and prepared for class
(Items with you- notebook, pencil, text, work etc).
Behavior that is disrespectful or interferes with the learning experience of others is not
acceptable. Doing work for other classes, arranging your social life, sleeping, discussing extracurricular activities, or distracting others during class is highly inappropriate. Please make sure
you understand the student handbook for all other rules and expectations.
Supplies
Pencil and/or Pen, Large notebook (3 subject) or three ring binder with paper, hi-liter, small
index cards, ruler, and pocket folder
Extra Credit
There will NOT be extra-credit offered for this course. Doing extra work or busy work can
raise your grade but it does not help you learn the material or concepts that you need from
this course. If you are failing or worried about your grade come to me for extra-help so we
can learn the material together.
Extra Help
I am available in the mornings during homeroom and additional times can be set up for us to
work together to help you learn the material. I may also be able to provide you with a student
tutor but I need to hear from you. Please do not wait until a day or two before the test or
towards the end of the semester and expect a miracle. This material is challenging! You will
need to study and put in the time.
Graduation
This is a required social studies credit for graduation. I will put in as much time as you do to
make you successful. I will stay after if you do. I will help you if you really working at it! There
is not an EASY OUT for this course. If you are endanger of not receiving the credit needed to
graduate, please come see me while there is time.