Download AP Microeconomics Syllabus - Hardin

AP Microeconomics Syllabus
Wendy Kee
Textbook:
Principles of Economics Edition 2 by Fred Gottheil, 1999
I reserve the right to periodically add whatever is needed to this list!
We will follow school rules in this class, which means no electronic devices, unless policy
changes, no hats, no eating or drinking, and id’s worn at all times properly.
Materials/Rules & Procedures:
 All students will be required to bring a writing utensil (don’t care what kind) and paper to
class EVERYDAY (unless told otherwise). If you do not have all of your materials, a detention
will be issued. Do not leave materials in class, they will be disposed of (lost and found in front
office)
 You will need some sort of binder as students will be taking notes throughout the year, as well
as receiving handouts. Students must keep up with notes; I may periodically take daily grades
based on these notes.
 Students will be asked periodically throughout the year to bring certain supplies to school, map
pencils, etc. Please take this into account when you are purchasing your school supplies.
 A Dictionary would be helpful to you in this class, but absolutely not required.
 If you would like to bring whole class supplies it would be appreciated, but not expected.
Tissues, hand sanitizer, and copy paper are always welcome.
 All assignments must be dated and are due the day after they are given, in other words,
completed for homework, unless told otherwise. Please see ZAP policy.
 Any student caught cheating will receive a zero, as will the person you’re cheating off of. Don’t
share your work with others. YOU did it, so can they!
 There will be assigned seating until told otherwise, stay there!
 Go to the restroom during your time! Lunch, and between classes, not my time. Emergencies
are an exception. FYI…an emergency does not happen everyday.
 Do not ask me to go ANYWHERE! If we have rare free time in class, find something to do in
class. This includes typing English papers…don’t ask!
 Black Dry-erase Marker and a SOCK
Absences/Tardies:
 My class is structured to be a lecture/discussion class with daily assignments and
cooperative/group activities.
 Students are responsible for coming to me when they are absent to receive work missed. I
cannot emphasize enough that this is your responsibility…I will not hunt you down to make
sure you make up assignments or tests!
 Group activities that are missed will be made up with a comparative assignment if necessary.
 All students will be given the same amount of time as the rest of the class was given to
complete the assignment (extenuating circumstances may apply).
 Tardies are unacceptable in my room, I make it, so can you! If you are tardy, you will sign
tardy sheet on back cabinet, a referral will be written for each tardy on each day.
 Tests must be made up on your own time and in my room. Morning tutorials are acceptable for
this, however if this is a problem, after school is fine as well. We won’t take class time. You
have one week after class takes test to take the test as well.
 Finally, if you are absent for a test, you give up your right for the extra credit questions that are
provided for each test.
Failures:
 If you are maintaining a failing grade after report cards are issued, you will be required to
attend tutorials before school 7:35-755.
 You will receive a progress report if you are making a 75 or lower at the 3 week mark. I will
give you a copy, and I will send one home.
 Be aware that I will not wait until progress slips go out to let your parents know how you are
doing in this class. I will call if I see a problem, or if you are doing well. It is my job to keep
them informed!
 My Conference period is 5th. Period. I will be available to speak to your parents or guardians
at that time. Please have them call the office to let me know they are coming.
Technology and Policies:
 Students will be given the opportunity to make up one failing test grade per 9 weeks period.
(does not include 9 wks, benchmark, or semester exams). You will be given one week to come
and take a retest during morning tutorials. The highest grade possible is a 70. Aside from
these retakes, all grades will stand as is…in other words, if you earn a 20, you will receive a
20. This includes 9 weeks grades.

ZAP (Zero’s Aren’t Permitted) policy:
ZAP is an opportunity for students to make up zeroes on daily work. Zeroes must be made up
within three weeks of receiving the failing grade. ZAP will be scheduled on Saturday mornings
and students will be required to wear their picture ID, be in full compliance with the dress code,
and on time to attend. Students will be allowed to make up any zero received in the three
weeks prior to ZAP. Information about ZAP can be obtained from each campus office. What
does this mean for you? You will have a due date for each assignment, if a daily grade
is not received by that date, you will receive a zero for that grade. Your parents will be
notified that you have zeros and will have one Saturday each 3 weeks period (from 8-10)
to make those up with an alternate assignment, designed by me!

All students will be required to create a Gmail account. Many teachers are requiring
this. Please write down this information, as it will be used later in class.
Pet Peevs:
 I can’t stand it when kids wander aimlessly around the room, find a chair and stay in it! This
rule also applies to bells; all students are to remain in their seats until the bell rings, not
huddled around the door!
 When I am speaking, you shouldn’t be! This is a respect issue, as well as practical…i.e. if
you’re talking, then you’re not listening to me.
I sincerely hope you will enjoy this class. Let’s have a great year!
Thanks,
Wendy Kee
AP Microeconomics/Economics/Psy/Soc/AP Psychology
Hardin-Jefferson High School
981-6430 ext. 3153
[email protected]
Graphing:
From the first chapter to the last chapter in AP Microeconomics, the drawing of correctly labeled
graphs are a MUST. Anything less than a correctly labeled graph will be unacceptable. You will be
drawing graphs with the following topics: production-possibilities curve, marginal benefits/marginal
costs, supply/demand, elasticity of supply/demand, effect of taxes on supply/demand/Qs/Qd,
utility/diminishing marginal utility, cost curves, perfect competition, monopoly, monopolistic
competition, oligopoly, cartel, monopsony, bi-lateral monopoly, factors market (labor, land, and
capital), externalities, equal distribution of income, and more.
Course Outline:
The outline for AP Microeconomics is as follows:
Percentage Goals of Exam
Content Area (multiple-choice section)
I. Basic Economic Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8–14%)….Chapters 1 & 2
A. Scarcity, choice, and opportunity cost
B. Production possibilities curve
C. Comparative advantage, absolute advantage, specialization, and trade
D. Economic systems
E. Property rights and the role of incentives
F. Marginal analysis
II. The Nature and Functions of Product Markets. . . . . . . . . . . . . . . . . . . . . (55–70%)
A. Supply and demand (15–20%)…Chapters 3 & 4
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 market efficiency
6. Tax incidence and deadweight loss
B. Theory of consumer choice (5–10%)…Chapter 5
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%)…Chapter 8
1. Production functions: short and long run
2. Marginal product and diminishing returns
3. Short-run costs
4. Long-run costs and economies of scale
5. Cost minimizing input combination
D. Firm behavior and market structure (25–35%)
1. Profit:…Chapter 9
a. Accounting versus economic profits
b. Normal profit
c. Profit maximization: MR=MC rule
2. Perfect competition…Chapters 10 & 11
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…Chapters 10 & 11
a. Sources of market power
b. Profit maximization
c. Inefficiency of monopoly
d. Price discrimination
e. Natural monopoly
4. Oligopoly…Chapter 12
a. Interdependence, collusion, and cartels
b. Game theory and strategic behavior
5. Monopolistic competition…Chapters 10 & 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 Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10–18%)…Chapters 15 & 16
A. Derived factor demand
B. Marginal revenue product
C. Labor market and firms’ hiring of labor
D. Market distribution of income
(Included in this Factor Market are derived demand for land, labor, and capital, along with the
marginal factor cost of each.)
IV. Market Failure and the Role of Government . . . . . . . . . . . . . . . . (12–18%)…Chapters 13 & 14
A. Externalities
1. Marginal social benefit and marginal social cost
2. Positive externalities
3. Negative externalities
4. Remedies
B. Public goods
1. Public versus private goods
2. Provision of public goods
C. Public policy to promote competition
1. Antitrust policy
2. Regulation
In this course, we will discuss the following concepts in detail. So, our course will include, but
will not be limited to the following concepts:
Part I: Main ideas of economics including:
Scarcity, opportunity costs, positive vs. normative economics, macroeconomics vs. microeconomics,
production possibilities curves, the factors of production, comparative vs. absolute advantage, inputs
and outputs, and the fundamental economic questions.
Part II: Economic and Political Economic Systems: Differences between Capitalism, Mixed Free
Enterprise, Socialism, Fascism, & Communism. Students will also compare and contrast the
differences between a market economy, a traditional economy, and a command economy.
Part III: Supply & Demand & Consumer Behavior: Including Supply & Demand Shifts, Elastic vs.
Inelastic Demand and Supply, Price Equilibrium, Equilibrium Quantity, Government price ceilings and
price floors, shortages, surpluses, consumer surpluses, the law of diminishing marginal utility,
indifference curves, budget constraints, marginal rate of substitution, and cost-benefit analysis,
isoquants, and isocosts.
Part IV: Perfectly Competitive Markets & Economic Costs: Characteristics of Perfectly
competitive markets, imperfect competition, market failure, total revenue, total costs, long run vs.
short run characteristics and all costs and firm cost curves, including: total fixed costs, total variable
costs, total costs, average fixed costs, average variable costs, average total costs, and marginal
costs. Also, decisions of the firm based on costs such as the shut-down point.
Also, increasing returns to scale/economies of scale, constant returns to scale, decreasing returns to
scale/diseconomies of scale, long run average costs, optimal scale of plant, and the long-run
competitive equilibrium.
Part V: Market Structures & Public Goods: The Characteristics of Monopolies, Oligopolies, and
perfectly competitive markets. Public goods, externalities and the socially efficient allocation of
resources. With oligopolies: game theory, Nash Equilibrium. Monopolies: Barriers to entry, patents,
Monopoly cost curves, collusion, government failure. With oligopolies: product differentiation, cartels,
price leadership, and cost curve. Marginal Social Costs, Marginal Social Benefits, Marginal Private
Costs, Marginal Damage Costs, Coase Theorem, Nonrival in consumption, nonexcludable, free-rider
problem, drop-in-the-bucket problem.
Part VI: Income Distribution, Poverty & Taxation: Property Income, Medicare, Public Assistance,
Unemployment, Proportional Taxes, Regressive Taxes, Average Tax Rate, Marginal Tax Real Estate
Taxes.
Part VII: Review of the semester. This includes practice questions in multiple choice and free
response format.