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Advanced Placement Economics (Micro and Macro)
Instructor:
Mr. Scott Meikle, Room 624
Website:
http://www.atech.org/faculty/meikle/index.html
Contact Information:
[email protected]
(702) 799 – 7870 ext. 3624
Course Scope
AP Economics is a college-level course that focuses on the decision making of individuals,
businesses, and the government. Students will study a variety of economic theories and analyze
their practical application in the real world.
This yearlong course will cover both microeconomics and macroeconomics. Microeconomics
focuses on the supply and demand for products, the labor markets, and the role competition plays
in a free market system. Macroeconomics focuses on the economy as a whole, including
economic measures, economic growth, fiscal policy, monetary policy, and international
economics. Students are expected to take both AP exams in May.
This class will prepare you for college and potentially allow you to earn 6 university credits upon
passing both AP exams. Extensive math skills are not required; however, the ability to analyze
graphs and charts is essential.
Course Goals
Microeconomics:
The purpose of the AP course in microeconomics is to give students a thorough understanding of
the principles of economics that apply to the functions of individual decision makers, both
consumers and producers, within the economic system. It places primary emphasis on the nature
and functions of product markets and includes the study of factor markets and of the role of
government in promoting greater efficiency and equity in the economy.
Macroeconomics:
The purpose of the AP course in macroeconomics is to give students a thorough understanding of
the principles of economics that apply to an economic system as a whole. The course places
particular emphasis on the study of national income and price-level determination, and also
develops students’ familiarity with economic performance measures, the financial sector,
stabilization policies, economic growth, and international economics. There is no single
approach that an AP Macroeconomics course is expected to follow. Whatever the approach,
however, AP teachers are advised to take into account certain topics generally covered in college
courses.
Please Note:
 The order of the syllabus is to be taught at the discretion of the teacher.
Materials
A. Textbook/Resources:
Mankiw, N. Gregory. Principles of Economics. 6th ed. South-Western/Cengage Learning,
2012.
Morton, John. Advanced Placement Economics, Microeconomics: Student Activities. 3rd
ed. National Council on Economic Education, 2003.
Mr. Meikle’s Website:
http://www.atech.org/faculty/meikle/index.html
B. Supplemental materials
Items, such as political and historical documents, writings, documentaries, bibliographies, etc.,
will also be used throughout the year. These will be supplied by the instructor, or directions will
be given so the students can obtain such records.
C. Required items:
 Three-ring binder
 College-ruled notebook paper
 Pens (Black or Blue ink only) and #2 Pencils
 Graph Paper
D. Suggested items
 Whiteout
 Highlighter
 Stapler
 Three-hole punch
 Post-it notes
Course Outline
Microeconomic Outline (1st semester)
Unit I: Basic Economic Concepts - 2 Weeks (8% – 14%)
(Chapters 1, 2, 3: Mankiw)
A. Founding Principles
 Scarcity, the economizing problem
 Tradeoffs and Opportunity Cost
 Free-market system (Adam Smith’s invisible hand)
B. Types of Economics
 Microeconomics vs. macroeconomics
 Positive economics vs. normative economics
C. Production Possibilities Graph
 Straight vs. bowed PPF
 Underutilization, full employment, and unattainable
 Law of increasing opportunity cost
 3 shifters of the PPF
 Consumer goods vs. capital goods
D. Circular Flow Model
 Product market, Factor market, and Public sector
E. Specialization and Trade
 Absolute advantage
 Comparative advantage
Unit II: Supply, Demand, and Consumer Choice – 4 Weeks (20% - 30%)
(Chapters 4, 5, 6, 9, 21: Mankiw)
A. Demand (graph)
 Law of demand
 Market demand curve
 Determinants of demand
 Normal vs. inferior goods
 Substitutes and complements
B. Supply (graph)
 Law of supply
 Market supply curve
 Determinants of supply
C. Equilibrium and Efficiency (graph)
 Equilibrium price and quantity
 Disequilibrium: surplus and shortages (graphing)
D. Government Policies (graphs)
 Price floors and Price ceilings
 Excise taxes, Subsidies, Tariffs, Quotas
E. Elasticity
 Price, Income, and Cross Price elasticity of demand
 The total revenue test (graph)
F. Consumer Choice
 Law of diminishing marginal utility, Substitution effect, Income effect
 Marginal benefit/cost
 Utility maximizing rule
Unit III: Costs of Production and Perfect Competition – 3 Weeks (15% - 25%)
(Chapters 13 and 14: Mankiw)
A. Economists vs. Accountants
 Total revenue
 Explicit and Implicit costs
 Economic costs and profits
B. Costs of Production (graph)
 Fixed Costs, Variable costs, and Total costs
 Per-unit costs (AVC, AFC, ATC)
 Shifts in MC, ATC. AVC, and AFC
 Marginal costs and Marginal revenue
 Sunk costs
C. Law of Diminishing Marginal Returns (graph)
 Stage I: increasing returns
 Stage II: decreasing returns
 Stage III: negative returns
D. Long-run Production Costs (graph)
 Economies of scale, Constant Returns to scale, Diseconomies of scale
E. Characteristics of Perfect Competition
 Price takers
 Demand = MR= Price
 Graph: Firm vs. industry (market)
 Short-run (profit or loss)
 Long-run equilibrium (New firm enter and exit)
 Normal profit
 Shutdown decision (P< AVC)
 Productive efficiency (P = Min ATC)
 Allocative efficiency (P = MC)
Unit IV: Imperfect Competition – 3 Weeks (15% - 25%)
(Chapters 15, 16, 17: Mankiw)
A. Characteristics of Monopolies
 Barriers to entry
 MR below demand (graphs)
 Profit-maximizing price and quantity
 Natural monopoly
B. Effects on overall economy
 Compared to competitive industry
 Dead-weight loss
 X-efficiency
C. Price discrimination (graph)
 Purpose and results
 Graph (MR=D)
D. Regulation
 Unregulated price, fair return price, and socially optimal price
 Taxes and subsidies
E. Characteristics of Monopolistic Competition
 Long-run equilibrium (graph)
 Excess capacity
 Non-price competition
 Product differentiation
F. Characteristics of Oligopolies
 Kinked demand curve-competitive pricing
 Game theory (chart) price leadership
 Collusion and cartels
Unit V: Factor Markets – 3 Weeks (10 – 18%)
(Chapters 18 and 19: Mankiw)
A. Factor Markets Overview
 Circular Flow of Economic Activity
 Review definitions of marginal revenue, marginal product, the law of diminishing
marginal returns, rent, rent-seeking behavior, land, physical capital, goods,
services, consumption, expenditures, resources, costs, interest, and revenue.
B. Demand for labor
 Derived Demand
 MRC = MRP
 Least Cost/Profit Maximizing
 Combination of Resources
 Marginal physical product (MPP)
 Value of marginal product (VMP)
C. Perfectly competitive labor market (graph)
 Wage makers
 Perfectly elastic supply of labor
 Demand v. quantity demanded of a resource
 Productivity
D. Monopsony (graph)
 Wages and quantity compared to perfectly competitive labor market
E. Labor Unions
 Goals and methods
F. Effects of Minimum Wage
 Arguments for and against minimum wage (graphs)
G. Wage differentials
 Investment in human capital vs. physical capital
 Distribution of Income Among Factors
Unit VI: Market Failures and Government Involvement – 3 Weeks (12% - 18%)
(Chapters 10, 11, 20: Mankiw)
A. Public goods
 Demand for public goods
 Supply of public goods
 Free-rider problem
 Non-excludability and Non-rivalry
B. Positive externalities/spillover benefits (graph)
 Marginal social benefits vs. private benefits
 Underallocation
 Government remedy
C. Negative externalities/spillover costs (graph)
 Marginal social cost vs. private cost
 Overallocation
 Government remedy
D. Income distribution
 Lorenz curve (graph)
 Tax incidences
Macroeconomics Outline (2nd Semester)
Unit I: Basic Economic Concepts – 1 Week (review from 1st Semester)
(Chapters 1, 2, 3, 4, 5: Mankiw)
A.
B.
C.
D.
E.
F.
Scarcity: the nature of economic systems
Opportunity costs and tradeoffs
Production possibilities graph
Absolute advantage, Comparative advantage, and Specialization
The functions of any economic system (what, how, and for whom to produce?)
Demand, supply, and price determination
Unit II: Measurement of Economic Performance – 2 Weeks (12% - 16%)
(Chapters 23, 24, 28, 30: Mankiw)
A. Gross domestic product and national income concepts.
 Components of GDP
 Calculating GDP using the Expenditure and Income Approach
 Real vs. Nominal GDP
 Per Capita GDP
 Shortcomings of GDP
B. Unemployment and the Business cycle
 Four phases of the business cycle
 Measuring Unemployment
 Types of Unemployment
 Natural rate of Unemployment, actual rate of unemployment
C. Inflation and price indices.
 Calculating Consumer Price Index (CPI)
 Types of Inflation
 Consequences of inflation
 Real vs. nominal income/ interest rates
Unit III: National Income and Price Determination – 3 Weeks (15% - 25%)
(Chapters 33, 34, 35: Mankiw)
A. Aggregate Demand Graph
 Circular flow model
 Determinates of aggregate demand
 Multiplier
B. Aggregate Supply Graph
 Determinants of aggregate supply
 Short-run vs. Long-run analysis (AD/AS model)
 Classical analysis
 Keynesian analysis
C. Macroeconomic equilibrium
 Real output and price level (graph)
 Short run vs. long run output
 Actual vs. full employment output
 Income-Consumption and Income-Savings Model
 Average Propensity to Consume/Save
 Marginal Propensity to Consume/Save
 Real interest rate-investment relationship
 Investment Demand Curve (graph)
Unit IV: Financial Sector – 4 Weeks (10% - 20%)
(Chapters 26, 29: Mankiw)
A. Money and banking
 Definition of money and its functions
 Measurements of the money supply
 Banks and the creation of money
 Money market
B. Role of the central bank and the money supply
 Tools of the central bank
 Expansionary vs. contractionary monetary policy
 Real vs. nominal interest rates
C. Fiscal policy
 Expansionary vs. Contractionary fiscal policy
 Demand-side vs. supply side economics
 Budget deficits/surpluses
 Automatic stabilizers and crowding out
D. Fiscal and monetary mix
 Interaction of fiscal and monetary policies
 Monetarist-Keynesian controversy
Unit V: Macroeconomic Debates and International Trade and Finance – 4 Weeks (20% 30%)
(Chapters 31, 32, 36: Mankiw)
A. Trade-offs between inflation and unemployment
 Unemployment-inflation relationship and the Phillips Curve
 The long-run Phillips Curve (graph)
B. Economic growth
 Production possibilities analysis of growth (graph)
 U.S. Economic growth rates
 Accounting for growth
C. Disputes over macro theory and policy
 Classical view vs. Keynesian view
 New classical view of self-correction
D. Comparative advantage revisited as to why nations trade
 Supply and Demand analysis of Exports and Imports
 Trade Barriers: Tariffs, Quotas, & Embargoes
 Protectionism vs. free trade arguments
E. International finance
 Balance of payments, Current account, Capital Account
 Flexible vs. fixed exchange rates
 Currency appreciation/depreciation
 U.S. trade deficit
AP Exam Review – 2 and ½ weeks (More information in April)
Methodologies and criteria for grading
This course will include varied techniques for instruction. These assignments will also be graded,
with the total points available determining the weight for that particular assignment. These
methods will include:
- Cooperative group work
- Chart work
- Video presentations
- In class assignments
- Quizzes
- Chapter Problem Sets
- Lecture and discussion
- Tests
Grading Policy
A. Grading Scale
A .......... 90 – 100 %
D .......... 60 – 69 %
B .......... 80 – 89 %
F .......... 0 – 59 %
C .......... 70 – 79 %
Your nine-week grade will be based on a cumulative point system and the percentage of the total
points earned. Total points available will vary each nine-week period.
The instructor reserves the right to modify the grading scale, on an assignment or test, as needed.
There is no curve for the class.
B. Quarter weights
Quizzes = 20%
Problem Sets = 25%
Unit Tests = 35%
Partner Tests = 20%
C. Semester weights
Quarter Grade ………. ……….40 %
Semester Exam Grade ………. 20 %
D. Tests and Quizzes
An average of two to four oral quizzes will be given for each unit covered in class. These quizzes
will cover reading and lecture material.
Each unit will include a practice test. The practice test will be graded and will contain 15 – 20
questions. This test will be taken with your partner.
Each unit will include a test. The tests will generally include 30 – 40 multiple choice questions
and an FRQ. Approximately half of the multiple choice questions will be from released exams.
E. Problem Sets
Problem Sets are essentially take home practice questions that require you to explain and apply
the concepts discussed in class and in your book.
Each problem set will contain at least two Free Response Questions (FRQs) similar to those
given on the AP Exam.
Problem sets are expected to be typed, double-spaced, 12 font size, with reasonable margins.
(Special cases will be excused upon request)
F. In class activities
These are not graded; however, successfully working with partners/small groups will help you
investigate and understand complex concepts. Also, these will provide opportunities for practice
and mastery of content.
G. Make-up Policy
The following is from CCSD policy 5113, regarding make-up work. This is the policy that I will
follow:
“After any absence, a secondary student is required to initiate contact with the teacher(s) to
obtain appropriate makeup work within three school days immediately following the absence.
Once contact has been made with the teacher(s), specific makeup work must be completed and
returned to the teacher(s) within a reasonable length of time, to be determined by the teacher and
communicated to the student/parent or legal guardian. The makeup work must be returned to the
teacher(s) by the specified due date if it is to be acknowledged. Students shall be allowed a
minimum of three (3) days to complete makeup work.”
In addition to the above policy, the following policies will also be enforced:
 Arrangements will be made using a log book located at my desk. All assignments and/or
arrangements will be tracked; this is for your protection as well as mine.
 If you miss a quiz or test you may NOT make this up during class. You will have to come
in before or after school.
 Any assignment given prior to an absence is due the first day of the student’s return.
Special cases will be accepted, but this is at the teacher’s discretion.
H. Citizenship Grade
Each quarter, you will be assessed a citizenship grade. Essentially, I will determine your level of
citizenship as it pertains to this class. Things I will look for, in terms of determining your grade,
will be:
 Interest in current events.
 Ability to connect the past with the present.
 A genuine interest in the material, as it is presented.
 A positive and productive attitude towards this class and subject matter.
The grade given for this section will be as follows:
O = Outstanding
N = Needs improvement
S = Satisfactory
U = Unsatisfactory
I. Notebooks
It is not my intention to check notebooks on a regular basis. However, I will “spot-check”
students from time-to-time to ensure compliance. How you construct and use the notebook is
your own choice. I believe you will find an organized and up-to-date notebook to be a useful tool
for achieving success in this course.
Cornell Notes will be required for all in-class notes that you will take.
J. Homework
UNDER NO CIRCUMSTANCES WILL LATE WORK BE ACCEPTED
Homework will be given on a daily basis. This may include reading, preparing for a quiz,
reviewing for a test, completing chapter problem sets, or any other tool I may use at my
discretion.
Point values and the category of grading will vary depending on the type and scope of the
assignment.
K. Expectations on assignments
Spelling, grammar, neatness, and following directions are required on ALL assignments. Failure
to adhere to these standards will result in a loss of points.
L. Extra Credit
It is not my general policy to offer extra credit. However, extenuating circumstances in the news
(events, special occasions, etc.) may offer an opportunity to extend an extra credit assignment.
This is at my sole discretion. Information will be given when appropriate.
Classroom Behavior and Expectations
As all of you are experienced at being in the classroom, all of you should know what is expected
of you. However, here are some of the general rules pertaining to this class:
1. Show respect to faculty, staff, and other students at all times.
- This includes raising your hand to be called upon and not interrupting while
others are speaking.
2. No racial or ethnic slurs, nor sexually suggestive language, will be tolerated at any
time.
3. Be prepared to start class at the appropriate time.
- This includes having all of the appropriate supplies and assignments.
4. No unauthorized work on computers.
- This includes visiting websites that are deemed inappropriate by the
school.
5. No food or drink is allowed in the classroom.
6. Students can only leave the class with a corridor pass.
7. No use of personal electronic devices (I-Pods, cell phones, etc.).
- There is absolutely no need for these in class, and they will be
confiscated if found. This process is explained in the Student Handbook.
8. All of the other school policies printed in the Parent/Student Handbook will be
adhered to at all time.
*Please Note*:
1. A-TECH employs a progressive discipline policy which can be found in the
Parent/Student handbook.
2. Students will be expected to follow these policies at all times.
3. I will notify students of any changes, if necessary, to the general classroom
rules.
Warnings/Reprimands
Each case is different, but here is a general list of consequences for breaking any of the
classroom rules.
1. Verbal warning
2. Rearrangement of seats
3. Conference with the teacher
4. Notification call to parents
*In severe cases, students may be referred to the Dean of Students*