Advanced Placement (AP) Microeconomics Autumn 2013 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: McConnell, C.R. & Brue, S.L. (2002). Economics: Principles, Problems, and Policies – Fifteenth Edition. Boston: McGraw-Hill Irwin. Additional resources: http://apcentral.collegeboard.com/apc/Controller.jpf Student Evaluation: Daily Grades = 40% Major Grades = 60% Retakes, when offered, can earn up to 80% credit. This 80% is achieved by multiplying retake raw grade by .8 Classroom participation and behavior will be factored into grades 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 520 before school, from 8:00 to 8:30 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 (Read Before You Arrive!) August 26-27 Course Overview/Classroom Rules August 28 Introduction, Why We Graph Read p. 2, 15-19 August 29-30 Economic Way of Thinking Read p. 3-13. For 8/30, define termsand concepts in your notes (p. 13) September 3-5 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 6 Economic Systems Read p. 34-35. Define terms and concepts in your notes. Answer #15-17 on p. 38. September 9 Review, Quiz? September 11-12 Comparative and Absolute Advantage Read p. 98-101. Define terms and concepts. September 13-19 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 20-25 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 27 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 Assignment (Read Before You Arrive!) September 30 Market Structure Overview Product Differentiation Read p. 437-438. Assignment on product differentiation at end of class. October 1-4 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 8-11 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 (Read Before You Arrive!) October 16-17 Monopoly Downward sloping demand curve Consumer and producer surplus Read p. 463-472. Define terms and concepts. October 18-21 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 22 Quiz on Monopolies October 23-24 Monopolistic Competition Read p. 486-493. Define terms and concepts. October 25-28 Oligopoly Game Theory Kinked Demand Curve Read p. 493-508. Define terms and concepts. Answer #1, 4-8 on p. 508-509. October 29 Review October 30 Unit 3 Exam 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 (Read Before You Arrive!) October 31 Circular Flow of Economic Activity review Read p. 34-35. Happy Halloween! November 1, 4-6 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 7-8, 11 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 12 Economic Rent Read p. 572-576. Define terms and concepts. Answer #1-3a-d on p. 585. November 13 Review November 14 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 (Read Before You Arrive) November 15-18 Role of Government Public Goods Read p. 588-592. Define terms and concepts. November 19-20 Externalities Coase Theorem Marginal Analysis Read p. 592-608. Define terms and concepts. Answer #1-6 on p. 608-609. November 21-22, 25 Market Failure Public Goods Read p. 80-82. Political assignment. December 2-3 Taxes Read p. 619-620. Political assignment. December 4 Review December 5 Unit 5 Exam HAPPY THANKSGIVING!!! Post Unit 5: Semester Review, Make-Up Time, Link to Macroeconomics (Spring Semester) December 9-13 Link to Macroeconomics December 10-16 Review for Final Exam December 17-20 Final Exam Week