A.P. Microeconomics

Class and Homework Schedule

AP MICROECONOMICS – Spring 2007

Class Syllabus

 Textbook

Ralph T. Byrns and Gerald W. Stone, Economics (Sixth Edition), HaperCollins College Publishers (1995).  This textbook is provided for you by the district.  As such, do not write or highlight in this book.  You are responsible for returning the same book issued to you at the end of the semester.  Should you loose your book before the end of the semester you must pay for a replacement before you are issued anther one. 

 Ancillary Materials:

Byrns, Ralph T, and Gerald W. Stone, Student Guide for Learning Economics, Harper Collins College Publishers (1995), 6th Edition

Morton, John S. and Rae Jean B. Goodman, Advanced Placement Economics Microeconomics: Student Activities, National Council on Economic Education (2003) 3rd Edition.

 Morton, John S. and Rae Jean B. Goodman, Advanced Placement Economics Microeconomics: Teacher Resource Manual, National Council on Economic Education (2003) 3rd Edition.

 Fishman, Charles, The Wal-mart Effect Penguin Books (2006)

 Periodicals: Timely articles will assigned from the various publications.  Students will analyze each article and write a short response demonstrating the application of concepts covered in the class. 

            The Economist

            The Wall Street Journal

            Business Week

 Course Description

As our world economy moves ever closer to complete globalization, understanding economic concepts, policies and their impacts is becoming increasingly important in a global society.  Microeconomic decisions made in the United States and other western countries affect not only our own economies but those of other nations as well.  This global economy requires citizens in all countries to become better informed decision makers.  Microeconomic concepts play a pivotal role in understanding how macroeconomic policies are formulated.  They are also essential elements of any business education.

The long term purpose of this course is to give each student the tools to analyze economic information and apply it to aid in making future decisions.  In the short term, this course is prepared to help you master the information needed to pass the AP Microeconomic exam.  I expect each student to take the AP exam.

General Approach

This is a very difficult but interesting class.  There is a great deal of material to cover over the course of the semester.  As such, you are required to read each chapter before we begin discussing it in class.  I count on each member of the class to actively participate in each class session.  Class discussion and lecture are designed to clarify and elaborate on difficult concepts and explain the application of these concepts in a national and global economy.  

Class discussion and lecture will be supplemented by group activities and assignments.  Each is designed to assist in your understanding of the applications of economic principles. 

Course Content (Students are required to take AP Macroeconomics before taking AP Microeconomics.  Basic economics concepts are covered in the AP Macroeconomic class and are not repeated.) This course concentrates on the decisions made by individual households and business and ends with the microeconomic role of the government. We focus on consumer choice, business firms and production decisions, and the relationship between the two when making production decisions.

Topics covered by AP Macroeconomics

                        Cornerstones of Economics (3 weeks); An introduction to the building blocks of economics and their application to economic thought. 

Chapter 1        Economics: the Study of Scarcity and Choice: Scarcity arises because the sum of human wants exceeds the world’s capacity to produce goods.  Economics tries to answer the question: How do we allocate scarce resources most efficiently?

Chapter 2        Scarcity in a world of Transition: Income and resources flow between households and firms which is illustrated in the Circular Flow model of the Economy.  Maximizing the world’s output requires cooperative production, specialization and division of labor.

Chapter 3        Demand and Supply: The analysis of the interaction between supply and demand in a market economy to determine output and price.

Chapter 4        Markets and Equilibrium: Investigation of movements of the Supply and Demand curve and their effects on prices and output and the role of market forces in establishing equilibrium.  How do government interventions in the market affect the markets ability to self correct?  

Unit 1              Core Concepts in Microeconomics (4 weeks)

Chapter 20      Elasticity – Measures the responsiveness of quantity changes to price changes

Chapter 21      Consumer Choice – Consider how individuals choose rationally in attempts to maximize their satisfaction or economic welfare

·        Utility

·        Concept of Total and Marginal Utility

·        Diminishing Marginal Utility

·        Maximization of Utility and Principle of Equal Marginal Utility

·        Substitution and Income effects

·        Consumer Surplus and graphical analysis

·        Information and rational choice

·        Asymmetric Information and consequences

·        Chapter Homework Packet from Student Guide for Learning Economics that includes sample multiple choice, true/false, and short answer math calculations of marginal utility, equal marginal principle and graphing analysis of consumer surplus questions

·        Article analysis from the Economist or Wall Street Journal illustrating the concept

·        Class worksheet on consumer surplus and principle of equal marginal utilities per dollar

·        Activity demonstrating the Law of Diminishing Marginal Utility

·        Chapter Exam consisting of AP style multiple choice and short answer questions

Chapter 22      Theory of the Firm – Introduces the organization and functions of firms, and the role of examine the role entrepreneurs play in economic innovation

Chapter 23      Production Costs – examine how costs vary with output and the relationships that characterize the production process

Unit 2              Product Markets (4 weeks) – Explore the range of market organizations between pure competition and monopoly and the characteristics of each.  Examine the consequences of different forms of competition in the market place.

Chapter 24      The Competitive Ideal – identify the characteristics of a perfectly competitive industry and the impact competition has on the demand curve facing producers, production decisions and profits

Chapter 25      Monopoly – Identify the differences between monopoly firms and perfectly competitive firms and explain graphically why perfectly competitive firms are more socially efficient.

Chapter 26      Imperfect Competition – Analysis of Oligopoly and Monopolistically Competitive firms vs. Perfect Competition and Monopoly

Chapter 27      Antitrust and Regulation – Identifying attempts to quantify market power and increase competition.

Unit 3              Resource Markets (4 weeks) – Investigation of how markets for land, capital and entrepreneurship determine rates of rent, interest, and economic profit.

Chapter 28      Competitive Labor Markets – Analysis of Competitive Labor Markets including graphical representation of supply and demand for labor and marginal Productivity Theory.

            Chapter 29      Imperfect Competition in Labor Markets

Chapter 30      Rent, Interest, Profits, and Capitalization – Examination of the resource markets and relationship between factors of production

Chapter 31      Income Distribution and Poverty – Investigate the role of income distribution in preventing poverty and discuss different theories of equitable income distribution

Unit 4              Modern Microeconomic Issues (3 weeks) – Analyzing Economic Problems and Evaluating Policies designed to address them

Chapter 32      Market Failure and Public Finance – Investigation of the causes of market failure and the role of government in addressing them.

Chapter 33      Public Choice – Examination of Political Behavior from an Economic Perspective

 


 

Chapter 34      Environmental Economics – Investigation of economic application to environmental principles and externalities

 

 

Expected Behavior

 


 

Make-policy

 

Cheating

The definition of cheating includes: plagiarism (otherwise known as borrowing the words or ideas of others), looking at another student’s paper during an exam, asking for answers, or signaling to others.  In general, your answers should 100% original to your mind.  If you are caught cheating, you will receive a zero for the assignment.  This includes the person taking the answers and the person providing the answers.  Furthermore a referral will be sent to the deans’ office and your parents will be notified.  I realize that this is a difficult class.  If you feel like you are falling behind and need help, contact me and I will work with you.  THERE IS NEVER A REASON TO CHEAT.

 

Final Thoughts

I sincerely hope that all of you will learn a great deal this semester about economics and its application in national and world politics.  Understanding economic concepts will help clarify many of the issues facing the world today.