ADVANCED PLACEMENT
ECONOMICS
CLASS INFORMATION
2015-2016
Ms. Denise Kirk, Buena Park High School
dkirk@fjuhsd.net
(714) 992-8685
“[Economics] is a method rather than a doctrine, an apparatus
of the mind, a technique of thinking...”
-John Maynard Keynes
Required Text:
Economics (19th ed.)
C. R. McConnell, S. L. Brue
McGraw Hill, Inc., 2012
A.
Optional Study Guides: McGraw-Hill, Princeton
Review, Barron’s, or equivalent guides are extremely
helpful if you have any doubt about your ability to get
the grade you want. Buying them in the fall is worth it.
Purchasing a review book is not a requirement for
the class!
Course Description:
AP Economics is a college level, two-semester course designed to provide students with a thorough
understanding of the principles of economics that apply to the functions of consumers and producers within
the economic system (microeconomics), as well as an understanding of the economic principles which
operate within the economic system as a whole (macroeconomics). The course will integrate the role of the
government in promoting greater efficiency and equity in the economy. The aim of AP Economics is to
provide the student with a learning experience equivalent to that obtained in typical college introduction level
economics courses. Students will learn to think like economists – to question the choices made by
individuals, leaders, businesspeople, even societies, to evaluate costs and benefits, to learn to expect and
predict the ways that one action will cause important secondary effects that illumined people consider
beforehand.
B.
Course Requirements:
1.
Both Microeconomics and Macroeconomics are full semester courses which must be condensed into
about 90% of a semester each.
2.
You are expected to take both AP exams in economics. Each exam is approximately 2.5 hours long.
Failure to sit for at least one actual exam will result in an alternative assessment in which you
sit for a similar exam after school. I will grade it. It will be worth 33% of your semester grade.
3.
You should keep the handouts from class neatly until after the AP exams. They will ultimately
become a review book.
4.
You will participate actively in class. Your grade will depend on your effort and participation.
5.
You will have excellent attendance. Your participation grade depends (logically) on punctuality and
attendance.
6.
Homework will be a significant part of the course. All assignments will be expected on the day that
they are required and late assignments will be given partial credit unless there is an excused absence.
Homework is evaluated for completeness and thoroughness. Class work will depend upon your
careful preparation of each assignment. Homework is due at the beginning of the period on the day
that it is due.
7.
At times your work will be with others in a group. You will be expected to participate fully in the
assigned group work. People who sit back and observe what others do during group work or whose
main contribution is lighthearted jokes, will work alone. This is not a retirement party.
8.
Students who are experiencing difficulties in the course or who seek additional instruction and
discussion are encouraged to see me immediately. To make contact, see me during class to set up a
time. If you need extra help, PLEASE attend Coyote HOWL even if you are not assigned to HOWL.
I am more than willing to help you during the Coyote HOWL period.
Academic Dishonesty Warning
Economists have learned that dishonesty and corruption are the major reasons for lower standards of living
around the world, including developed nations.
This means when you cheat, you don’t just hurt yourself. I would usually be willing to have you cheat
if it only hurt you; that would be fair. But you hurt others when you cheat. For example, a cheater
may get the seat at UC Irvine when a better candidate does not. Society suffers if less competent people
are promoted due to trickery.
Therefore, as a service to our society and to straightforward, honorable people, I will attempt to
identify those who cheat on quizzes or exams or homework and subject them to the full force of our
school policies so that, if possible, they can be clearly identified as cheaters to all prospective
universities. This is a service I provide to honorable students at no charge.
C. Assessment/Grading:
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Homework = 20% of your semester grade
Quizzes and Unit Exams = 55% of your semester grade
Semester Final = 25% of your semester grade
D. Academic Grading Scale:
Percent earned
98 +
93 - 97
90 - 92
88 - 89
83 - 87
80 - 82
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Letter Grade
A+
A
AB+
B
B-
Percent earned
78 - 79
73 - 77
70 - 72
68 - 69
63 - 67
60 - 62
0 - 59
Letter Grade
C+
C
CD+
D
DF
90’s are awarded to a student who has demonstrated superiority. His/Her work accurately address and
answers all questions with breadth and depth. He/She has given full and appropriate illustrations to support
arguments.
80’s are given to a student who has demonstrated competence and, while his/her explanations, arguments and
illustrations indicate breadth and depth, they are uneven. He/She must indicate a solid and accurate
understanding of the questions asked.
70’s are issued to a student who has suggested competence and who has indicated comprehension and
understanding of the question but who has failed to develop answers.
60’s are given to a student who has suggested incompetence, who has suggested inadequate understanding of
the questions, and who has made only minimal and confused explanations.
Marks lower than 60 are issued to those few students who have demonstrated incompetence, who have failed
to demonstrate a comprehension of the question and who have dealt only slightly and in an irrelevant way
with the questions and issues.
Citizenship/Work Habit Grades are: Outstanding, Satisfactory, Needs Improvement, or Unsatisfactory.
 Students who perform their work fully, who take their own initiative to seek knowledge beyond the assigned
work and who do so well, and who take an active and regular part in class discussion will receive an
Outstanding citizenship grade.
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Those who take an active but inconsistent part in class discussion and who perform all the work assigned
with care and thoroughness but do not take the initiative to go beyond the scope of the assigned material will
receive a Satisfactory citizenship mark.
Those students who do not accomplish the assigned work and who do not take an active and regular
involvement in class will receive an effort mark of Needs Improvement.
Finally, those who do not do the assigned work and who do not take part in class, and who are disruptive will
receive a mark of Unsatisfactory.
Academic Honesty:
Students are reminded of activities which lead to academic dishonest referrals:
 Recording answers to tests or quizzes in any fashion other than memorizing them. For example, writing,
jotting, typing, texting, speaking, etc. are all forbidden.
 Sharing answers with other students outside of and between class periods, on the stairs, in the bathroom, etc.
 Copying the homework questions of another student using his or her answers as a guide.
Study groups are encouraged.
Missed Tests, Quizzes: If you must miss my class on a day that we have a quiz or unit exam, you must make-up the
quiz or unit exam either during your Coyote Howl period OR after school on the day that you return from your
absence. If you know ahead of time that you will be absent (i.e., due to a fieldtrip, sporting event, or family
obligation) you will need to take the exam the day prior to your absence.
Late Work: Will be accepted for partial credit only. You will earn one grade less for every day that it is late. We
will have a quiz or a unit exam on the day that homework is due. If you do not do your homework, or if you copy the
homework, you will not do very well on the quiz or unit exams. Homework is due at the beginning of the period.
E.
Responsibilities
Students are expected to read the chapters and take notes.
Note about reading the chapter and taking notes on key ideas: many seniors skip this process. Yet this really is the
standard way to learn from books. You’ll probably need to do this for my class.
Complete the “Quick Quiz” sections while reading. Always read the “Last Word” section. Define the
vocabulary in your notebooks and write out answers to “Textbook Study Questions.” You will be expected to discuss
your answers in class, and you may be called upon to present and discuss your answers. Additional worksheets will
be provided almost daily. These are critical and will become an essential part of your understanding and your review
for the AP examinations. Handout activities will be completed when assigned. Sample multiple-choice tests and
sample essays will also be assigned and discussed in class. There will also be supplemental readings provided.
Student's Responsibilities
Kirk's Responsibilities
1. Arrive on-time, ready to work;
1. Arrive prepared for class;
2. Make an honest effort to comprehend material;
2. Clearly present the lesson's objectives and
meaningful material to meet the objectives;
3. Complete assignments in a timely fashion;
3. Return all tests and assignments promptly;
4. Seek extra help when necessary;
4. Provide extra help for students;
5. Take notes and participate in class discussion;
5. Maintain an orderly and productive learning
environment;
6. Comment on ways of improving the class.
6. Solicit student comment concerning the instruction
of this class.
College Board (AP) Economics Information, p. 0
Instructional Plan: Microeconomics and Macroeconomics
Ms. Denise Kirk
Buena Park High School
2015-2016
Text: McConnell, Campbell and Stanley Brue. Economics: Principles, Problems, and Policies, 19th ed.
McGraw-Hill/Irwin, 2012
Workbooks: Stone, Gary. Advancement Placement Microeconomics and Macroeconomics Student
Activities, 4th ed. New York: Council for Economic Education, 2012.
College Board (AP) Economics Information, p. 1
TOPIC OUTLINE MICROECONOMICS – Fall Semester
I. Basic Economic Concepts = (8-14% of the AP Exam)
(2 weeks) Chapter 1, Chapter 1Appendix, Chapter 2
A. Scarcity, choice, and opportunity cost
A. Production possibilities curve (PPC), sometimes called production possibilities frontier
B. Comparative advantage, absolute advantage, specialization, and trade
C. Economics systems
D. Property rights and role of incentives
E. Marginal analysis
II. The Nature and Functions of Product Markets = (55-70% of the AP Exam)
A. Supply and demand (15-20% of the AP Exam) = “Teach a parrot to say supply and demand, and you have
an economist”
(3 weeks) Chapters 3, 4, 5 (pages 92-99), 16 (pages 347-352)
1. Market equilibrium
2. Determinants of supply and demand
3. Price and quantity controls
4. Elasticity
a. Price, income, and cross-price elasticities of demand
b. Price elasticity of supply
5. Consumer surplus, producer surplus, and allocative efficiency
6. Tax incidence and deadweight loss
B. Theory of consumer choice (5-10% of the AP Exam)
(1 week) Chapter 6
1. Total utility and marginal utility
2. Utility maximization: equalizing marginal utility per dollar
3. Individual and market demand curves
4. Income and substitution effects
C. Production and costs (10-15% of the AP Exam)
(1.5 weeks) Chapter 7
1. Production functions: short and long run
2. Marginal product and diminishing returns
3. Short-run costs
4. Long-run costs and economics of scale
5. Cost minimizing input combination and productive efficiency
D. Firm behavior and market structure (25-35% of the AP Exam)
(4.5 weeks) Chapters 8, 9, 10, 11
1. Profit
a. Accounting versus economic profits
b. Normal profit
c. Profit maximization: MR = MC rule
2. Perfect Competition (Chapters 8 and 9)
a. Profit maximization
b. Short-run supply and shutdown decision
c. Behavior of firms and markets in the short run and in the long run
d. Efficiency and perfect competition
3. Monopoly (Chapter 10)
a. Sources of market power
b. Profit maximization
c. Inefficiency of monopoly
d. Price discrimination
e. Natural monopoly
College Board (AP) Economics Information, p. 2
4. Oligopoly (Chapter 11)
a. Interdependence, collusion, and cartels
b. Game theory and strategic behavior
c. Dominant strategy
d. Nash equilibrium
5. Monopolistic Competition (Chapter 11)
a. Product differentiation and role of advertising
b. Profit maximization
c. Short-run and long-run equilibrium
d. Excess capacity and inefficiency
III. Factor (Resource) Markets = (10-18% of the AP Exam)
(2 weeks) Chapters 12, 13, 14
A. Derived factor (resource) demand
B. Marginal revenue product
C. Hiring decisions in the markets for labor and capital
D. Market distribution of income
IV. Market Failure and the Role of Government = (12-18% of the AP Exam)
(2 weeks) Chapter 5 (pages 99-114), 18, 20
“The outstanding faults of the economic society in which we live are its failures to provide full
employment and its arbitrary and inequitable distribution of wealth and income.”
- John Maynard Keynes
A. Externalities (Chapter 5)
1. Marginal social benefit and marginal social cost
2. Positive externalities
3. Negative externalities
4. Remedies
B. Public Goods (Chapter 5)
1. Public versus private goods
2. Provision of public goods
C. Public policy to promote competition (Chapter 18)
1. Antitrust policy
2. Regulation
D. Income distribution (Chapter 20)
1. Equity
2. Sources and measures of income inequality
College Board (AP) Economics Information, p. 3
Key AP Microeconomics Graphs:
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Chapter 1 = The Production Possibilities Curve
Chapter 2 = The Circular Flow Diagram
Chapter 3 = The Market Diagram – equilibrium price and equilibrium quantity
Chapter 6 = Total Utility and Marginal Utility
Chapter 7 = The Law of Diminishing Returns
Chapter 7 = The Relationship between the Marginal Cost Curve to the Average-Total-Cost and AverageVariable-Cost Curves
Chapter 7 = The Long-Run Average-Total-Cost Curve: Unlimited Number of Plant Sizes
Chapter 8 = Short-Run Profit Maximization for a Purely Competitive Firm
Chapter 8 = The P=MC Rule and the Competitive Firm’s Short-Run Supply Curve
Chapter 9 = Long-Run Equilibrium: A Competitive Firm and Market
Chapter 10 = Profit Maximization by a Pure Monopolist
Chapter 11 = A Monopolistically Competitive Firm: Short-Run and Long-Run
Chapter 11 = The Kinked-Demand Curve
Chapter 13 = Labor Supply and Labor Demand in (a) a Purely Competitive Labor Market and (b) a Single
Competitive Firm
College Board (AP) Economics Information, p. 4
TOPIC OUTLINE MACROECONOMICS = Spring Semester
Unit I. Measurement of Economic Performance = (12-16% of AP Exam)
(2 weeks) Chapters 23 and 24
A. National income accounts
1. Circular flow
2. Gross domestic product
3. Components of gross domestic product
4. Real versus nominal gross domestic product
B. Inflation measurement and adjustment
1. Price indices
2. Nominal versus real values
3. Costs of inflation
C. Unemployment
1. Definition and measurement
2. Types of unemployment
3. Natural rate of unemployment
D. Business Cycle
Unit II. National Income and Price Determination = (10-15% of the AP Exam)
(2 weeks) Chapters 27, 28, and 29
A. Aggregate demand
1. Determinants of aggregate demand
2. Multiplier and crowding-out effects
3. Aggregate expenditures model
B. Aggregate supply
1. Short-run and long-run analyses
2. Sticky versus flexible wages and prices
3. Determinants of aggregate supply
C. Macroeconomic equilibrium
1. Real output and price level
2. Short and long run
3. Actual versus full-employment output
4. Business cycle and economics fluctuations
Unit III. Financial Sector = (15-20% of the AP Exam)
(3 weeks) Chapters 31, 32, and 33
A. Money, banking, and financial markets
1. Definition of financial assets: money, stocks, bonds
2. Time value of money (present and future value)
3. Measures of money supply
4. Banks and the creation of money
5. Money demand
6. Money market and the equilibrium nominal interest rate
B. Loanable funds market
1. Supply of and demand for loanable funds
2. Equilibrium real interest rates
3. Crowding out
C. Central bank and control of the money supply
1. Tools of central bank policy
2. Quantity theory of money
3. Real versus nominal interest rates
College Board (AP) Economics Information, p. 5
Unit IV. Stabilization Policies = (20-30% of the AP Exam)
(2 weeks) Chapters 30 and 33 and 35
A. Fiscal and monetary policies
1. Demand-side effects
2. Supply-side effects
3. Policy mix
4. Government deficits and debt
B. The Phillips curve
1. Short-run and long-run Phillips curves
2. Demand-pull versus cost-push inflation
3. Role of expectations
Unit V. Economic Growth = (5-10% of the AP Exam)
(1 week) Chapter 25
A. Definition of economic growth
B. Determinants of economic growth
1. Investment in human capital
2. Investment in physical capital
3. Research and development, and technological progress
C. Growth policy
Unit VI. Open Economy: International Trade and Finance = (10-15% of AP Exam)
(2 weeks) Chapters 37 and 38
A. Balance of payments accounts
1. Balance of trade
2. Current account
3. Financial account (formerly known as the capital account)
B. Foreign exchange market
1. Demand for and supply of foreign exchange
2. Exchange rate determination
3. Currency appreciation and depreciation
C. Imports, exports, and financial capital flows
D. Relationships between international and domestic financial and goods markets
Key AP Macroeconomics Graphs:
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Chapter 27 = Consumption and Saving Schedules
Chapter 27 = The Investment Demand Curve
Chapter 28 = Equilibrium GDP in a Private Closed Economy
Chapter 28 = Recessionary and Inflationary Expenditure Gaps
Chapter 29 = The Equilibrium Price Level and Equilibrium Real GDP
Chapter 33 = The Demand for Money, the Supply of Money, and the Equilibrium Interest Rate
Chapter 33 = Monetary Policy and Equilibrium GDP
Chapter 37 = Trading Possibilities Lines and the Gains from Trade
Chapter 38 = The Market for Foreign Currency
College Board (AP) Economics Information, p. 6
Classroom Rules:
1. Follow school rules regarding behavior, attendance and the tardy policy (see BPHS Student Handbook)
 NO CELL PHONES, iPODS, or MP3 PLAYERS IN CLASS – if I see it out, I will take it and
give it to Mrs. Arredondo in Room # 25.
 No eating or drinking in class (water is okay)
 No profanity/swearing during class
 Respect your classmates’ right to their opinion even if it is different from yours.
 DO NOT WORK ON MATH, ENGLISH, SCIENCE ASSIGNMENTS, ETC. DURING
MY CLASS. If I see it out, I will take it from you. While you are in AP Economics, you should
be paying attention during class. Homework is to be done at home, not during my class time.
2. DO NOT COPY your homework assignment OR CHEAT on your tests. All homework assignments
must be handwritten in pencil or dark blue or black ink. Please write large enough for a normal person to
read. For example, it should be at least font 12 size writing. Some of you write microscopically!
3. On the day that homework is due, there will be a chapter quiz or unit exam. Be sure to do your
homework on time so that you are prepared for the quiz/unit exam.
4. Students missing a Midterm Exam or the Final Exam must have a doctor’s verified excuse in order to
make-up the missing exam. Your excuse must be exceptional to be allowed to make-up a missed
Midterm or missed Final Exam.
Office Hours:
I am available at lunch most days of the week, unless I have a department meeting. If you need extra help or need to
make-up a quiz or unit exam, please come at the beginning of lunch. My conference period is period 4. You may
make-up a quiz or unit exam during my conference period if it is okay with your 4th period teacher. You must bring
me a note from your period 4 teacher stating that it is okay for you to make up the test during period 4. Depending on
the length of the quiz, you MAY be able to make up a missing quiz during Coyote HOWL. You may also make-up
any tests afterschool. If you are planning to make-up a missed exam afterschool, please check with me first in order
to be sure that I can stay after school that day. During HOWL, you must bring me a note from your HOWL teacher.
AP Review Sessions:
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AP Macroeconomics = we will have review sessions after school and one epic Saturday Review Session.
Pizza will be provided on that Saturday. This will be the Saturday before the AP Macroeconomics Spring
Semester Final Exam. This Saturday Review Session will be held on Saturday, April 23th from 10:00am –
3:00pm. Please make sure that you are able to attend. Make sure that you are not scheduled to work on this
day. Your spring semester final is worth 25% of your semester grade.
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AP Microeconomics = we will have review sessions during Coyote HOWL. You must be in Coyote HOWL
starting after Spring Break until the AP Exam (so for four weeks or so). The only way that you can “miss”
this Coyote HOWL is if you are receiving a “D” or “F” in another class and must be in Coyote HOWL for
that class instead.
o
Please note = we will have review sessions before the AP Microeconomics Fall Semester Final
Exam. We will have an epic Review Session (pizza will be provided) on Saturday, December 12th
from 10:00am – 3:00pm. Please make sure that you can attend. Make sure that you are not
scheduled to work this day. Your fall semester final exam will be worth 25% of your semester grade.
College Board (AP) Economics Information, p. 7
College Credit for this Economics Class:
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Students who successfully complete this class will receive credit for Economics 100 – The Economic
Environment. This is a survey class that is offered through the California State University system. This
college credit does NOT transfer to UC schools. However, if you will be attending any California State
University ECON 100 does satisfy a GE (i.e., General Education requirement)
In order to ensure that you receive college credit at the UC schools and private colleges, you must pass the
AP Microeconomics and AP Macroeconomics exam. If you pass both exams, you will receive credit for a
semester of college level Microeconomics and credit for a semester of college level Macroeconomics. At the
Cal State University, passing both AP Economics exams, gives you credit of Economics 200 and Economics
201. Please note: for UC schools and for most selective private colleges, a “3” on an AP exam will give you
elective credit. In order to have it “count” towards a GE class, you typically need to earn a score of “4” or
above on your AP exams. So study hard all semester.
AP Macroeconomics = Wednesday, May 11, 2016 at 11:45am
AP Microeconomics = Friday, May 13, 2016 at 7:45am