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AP MICROECONOMICS SYLLABUS
The course is open to students who have demonstrated a willingness and desire to learn more
about economics. The course will be taught over a semester. However, the course will be flexed
with either AP Macroeconomics or AP Government (depending upon class enrollment), allowing
for forty- five 90 minute classes. The class will meet every other day throughout the semester
when flexed with AP Government. The class will meet for forty-five 90 minute consecutive
classes when flexed with AP Macroeconomics.
COURSE OBJECTIVES: AP microeconomics is tailored to the student who wishes to expand
their interest and understanding of the economic world. The student is introduced to the
economic way of thinking before examining and understanding the following economic concepts
which are primarily focused on the decision making of consumers and producers.
1. Understand the basic economic concepts including: decision making, scarcity,
opportunity cost, the production possibilities frontier, absolute and comparative
advantage, economic systems.
2. Understand the nature and function of markets including: circular flow, supply and
demand, market equilibrium, the law of supply and demand, elasticity of supply and
demand, the determinants of supply and demand, the changes in quantity demanded and
quantity supplied versus changes in supply and demand, surplus and shortage.
3. Understand the market system and choices made by households and firms including:
utility, marginal utility, the utility maximizing rule, income and substitution effects, the
production process, output decisions, profit maximizing behavior of firms, profits and
economic costs, accounting profit versus economic profit, short-run and long-run
decisions of the firm, derived demand.
4. Understand the market imperfections and the role of government including: Monopolies,
Oligopolies, and Monopolistic Competition, market power and pricing, the collusion
model, regulation and antitrust legislation.
5. Prepare the students for the AP Microeconomics exam.
TEXTBOOK: Case, Fair, Oster. Principles of Economics, Ninth Edition. NJ: Prentice Hall
OTHER RESOURCES:
1. Web sites:
Textbook website:
http://www.myeconlab.com
Cybereconomics:
http://ingrimayne.com/econ/TOC.html
http://www.collegeboard.com/student/testing/ap/about.html
COURSE REQUIREMENTS AND COURSE FORMAT: Students will be required to read
assigned material as well as complete assignments outside of class. Students should be prepared
for notes as well as at least one quiz every day. Furthermore, the students should be prepared to
contribute and discuss topics and / or current events of relevance to course material. Students
will write one report and report to class on topic of student’s choice. The student should
demonstrate adequate knowledge of economic concepts in application to current economic topics
within the paper. Students will take three unit exams and one final exam.
AP EXAM: Students are strongly encouraged to take the AP Microeconomics exam. Students
may choose to take the AP Macroeconomics exam as well. However, emphasis for this class
will be on the Microeconomics section. AP coordinators are responsible for letting students
know exactly where and when to take the exam. However, the exam will be on May 13th.
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GRADING:
Unit Tests
Quizzes
CW / HW and other Assignments
Paper OR Presentation
Final Exam
Total
25%
25%
20%
15%
15%
100%
ACHIEVABLE COURSE PLANNER
DAY
1
CHAPTERS
Syllabus
2
CH 1
3
CH 2
4
CH 1 - 2
5
CH 3
6
CH 3
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In Class
Course Overview
Assign books
Notes – Ch 1
Quiz (open note) – ch 1
Lesson (Do You Think Like an
Economist)
Notes – Ch 2
Quiz (open note) ch 2
Review HW problems
Quiz (closed note) ch 1-2
Notes – Ch 3
Quiz (open note) – ch 3
Notes – Ch 3
Quiz (open note) – ch 3
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HW / Reading Assignments
 Read Chapter 1
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Read Chapter 2

Problems (p. 42-44)

Read Chapter 3 (p. 45
– 56)
Read Chapter 3 (p. 57
– 70
Problems – ch 3 (p.
71 – 72)
Read Chapter 4
Why Gasoline Prices
Respond to Things
that Haven’t Happed
Yet
Problems – Chapter 4
(p. 86)
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7
CH 3 / 4
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Quiz (closed note) – ch 3
Review HW problems
Notes Ch 4
8
CH 4
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Notes Ch 4
The Hula Hoop Market of 1958
(activity)
Price Controls – Too High or Too
Low (activity)
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Read Chapter 5
Quiz (closed note) – ch 4
Notes Chapter 5
Quiz (open note) ch 5
Review HW Problems
Elasticity of Supply and Demand
(activity)
Complete Elasticity of Supply and
Demand (activity)
Quiz (closed note) – ch. 5

Problems – ch 5 (p.
104 – 105)
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9
CH 4 / 5
10
CH 5
11
CH 5
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REVIEW CH 1- 5 – STUDY
FOR UNIT 1 TEST
 Study Guide
REVIEW CH 1- 5 – STUDY
FOR UNIT 1 TEST
 Study Guide
DAY
12
CHAPTERS
CH 5
13
CH 1 – 5
14
CH 6
15
CH 6 / 7
16
CH 7
17
CH 7 / 8
18
CH 8
19
CH 9
20
CH 9
21
CH 10
22
CH 10
23
CH 11
24
CH 11
25
CH 12
26
CH 12
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In Class
Elasticity (activity)
Quiz (closed note) – ch 1 -5
UNIT 1 TEST
HW / Reading Assignments
REVIEW CH 1- 5 – STUDY
FOR UNIT 1 TEST
Study Guide
Read Chapter 6
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Notes – ch 6
Quiz (open note) – ch 6
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Review HW Problems
Quiz (closed note) – ch 6
Notes – ch 7
Quiz (open note) – ch 7
Review HW Problems
Activity
Notes – ch 7
Quiz (open note) – ch 7
Quiz (closed note) – ch 7
Notes – ch 8
Quiz (open note) – ch 8

Problems – Chapter 7
(p. 148 – 149)

Read Chapter 8
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Review Chapter 8
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Review HW Problems
Activity
Quiz (closed note) – ch 8
Notes – ch 9
Quiz (open note) – ch 9
Review HW Problems
Activity
Quiz (closed note) – ch 9
Notes – ch 10
Quiz (open note) – ch 10
Review HW Problems
Activity
Quiz (closed note) ch 10
Notes – ch 11
Quiz (open note) ch 11
Review HW Problems
Activity
Quiz (closed note) ch 11
Notes – ch 12
Quiz (open note) ch 11

Problems Ch 8 (p.
174– 176)
Read Chapter 9
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Review HW Problems
Activity
Quiz (closed note) ch 12
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Problems – Chapter 6
(p. 129 - 130)
Read Chapter 7
Problems Ch 9 (p.
196 – 198)
Read Chapter 10
Problems Chapter 10
(p. 219 – 220)
Read Chapter 11
Problems Chapter 11
(p. 235 – 236)
Read Chapter 12
Problems Chapter 12
(p. 258 – 260)
REVIEW CH 6-12 –
STUDY FOR UNIT 2 TEST
 Study Guide
DAY
CHAPTERS
In Class


HW / Reading Assignments
REVIEW CH 6-12 –
STUDY FOR UNIT 2 TEST
 Study Guide
27
CH 6 - 12
28
CH 6 – 12
29
CH 13
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30
CH 13
31
CH 14
32
CH 14
33
CH 15
34
CH 15
35
CH 16
36
CH 16
37
CH 13 – 16
38
CH 13 – 16
UNIT 3 TEST
39
FINAL
EXAM
REVIEW FOR FINAL EXAM
40
FINAL EXAM (CH 1 – 16)
41
FINAL
EXAM
AP EXAM
Problems Chapter 16
(p. 342 - 343)
REVIEW CH 13-16 –
STUDY FOR UNIT 3 TEST
 Study Guide
REVIEW CH 13-16 –
STUDY FOR UNIT 3 TEST
 Study Guide
STUDY FOR FINAL
EXAM
STUDY FOR FINAL
EXAM
 STUDY GUIDE
STUDY FOR AP EXAM
AP EXAM PREP
STUDY FOR AP EXAM
42
AP EXAM
AP EXAM
Review Activity
Review Quiz (ch 6 – 12)

Read Chapter 13
Notes – ch 13
Quiz (open note) ch 13

Problems Chapter 13
(p. 281 – 282)
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Review HW Problems
Activity
Quiz (closed note) ch 13
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Read Chapter 14
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Notes – ch 14
Quiz (open note) ch 14
Review HW Problems
Activity
Quiz (closed note) ch 14
Notes – ch 15
Quiz (open note) ch 15
Review HW Problems
Activity
Quiz (closed note) ch 15
Notes – ch 16
Quiz (open note) ch 16
Review HW Problems
Activity
Quiz (closed note) ch 16
Review Activity
Review Quiz

Problems Chapter 14
(p. 301 – 302)
Read Chapter 15
UNIT 2 TEST
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
Problems Chapter 15
(p. 317 – 318 )
Read Chapter 16
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COURSE OUTLINE:
UNIT 1: INTRODUCTION TO ECONOMICS - Chapters 1 – 5
Chapter 1: The Scope and Method of Economics (p. 1 – 15)
 The Economic way of thinking
Chapter 2: The Economic Problem: Scarcity and Choice (p. 25 – 41)
 Scarcity, Choice, and Opportunity Cost
 Specialization, Exchange, Comparative advantage, Absolute advantage
 Production Possibilities Frontier
 Economic Systems
Chapter 3: Demand, Supply, and Market Equilibrium (p. 45 – 69)
 The Circular Flow
 Market Equilibrium
 Demand in Product / Output Markets
o Changes in Quantity Demanded versus Changes in Demand
o The Law of Demand
o Determinants of Demand
o Elasticity of Demand
 Supply in Product / Output Markets
o Changes in Quantity Supplied versus Changes in Supply
o The Law of Supply
o Determinants of Supply
o Elasticity of Supply
 Surplus and Shortage
Chapter 4: Demand and Supply Applications (p. 73 – 85)
 Price Rationing
 Constraints on the Market and Alternative Rationing Mechanisms
 Oil, Gasoline, and OPEC
 Price Ceilings
 Rationing Mechanisms for Concert and Sports Tickets
 Price Floors
o Minimum Wage
 Supply and Demand and Market Efficiency
o Consumer Surplus
o Producer Surplus
Chapter 5: Elasticity (p. 89 – 103)
 Price elasticity of Demand
 Calculating Elasticity’s
 Elasticity and Total Revenue
 Determinants of Demand Elasticity
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UNIT 2: THE MARKET SYSTEM: CHOICES MADE BY HOUSEHOLDS AND FIRMS
Chapters 6 - 12
Chapter 6: Household Behavior and Consumer Choice (p. 111 – 127)
 The Basis of Choice: Utility
o Diminishing Marginal Utility
o Allocating Income to Maximize Utility
o The Utility Maximizing Rule
 Income and Substitution Effects
Chapter 7: The Production Process: The Behavior of Profit-Maximizing Firms (p. 135 – 147)
 Profits and Economic Costs
o Total Revenue, Total Cost, Total Profit
o Economic Profit vs. Accounting Profit
o Normal Rate of Return
o Short Run / Long Run Decisions
 The Production Functions: Total Product, Marginal Product, and Average Product
o Marginal Product and the Law of Diminishing Returns
o Marginal Product Versus Average Product
 Production Functions with Two Variable Factors of Production
Chapter 8: Short-Run Costs and Output Decisions (p. 155 – 173)
 Fixed Costs
 Variable Costs
o Marginal Cost
 Total Costs
Chapter 9: Long-Run Costs and Output Decisions (p. 177 – 195)
 Maximizing Profits
 Minimizing Losses
o Shutting Down to Minimize Loss
 Long Run Costs: Economies and Diseconomies of Scale
o Increasing Returns to Scale
o Constant Returns to Scale
o Decreasing Returns to Scale
 Long-Run Adjustments to Short-Run Conditions
 Short Run Profits: Expansion to Equilibrium
 Short Run Losses: Contraction to Equilibrium
 The Long-Run Adjustment Mechanism: Investment Flows Toward Profit Opportunities
Chapter 10: Input Demand: The Labor and Land Markets ( p.203 –217)
 Input Markets: Basic Concepts
o Demand for Inputs: A Derived Demand
o Inputs: Complementary and Substitutable
o Diminishing Returns
o Marginal Revenue Product
 Labor Markets
o A Firm Using Only One Variable Factor of Production: Labor
 Comparing Marginal Revenue and Marginal Cost to Maximize Profits
 A Firm Using Two Variable Factors of Production in the Short and Long Run
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o Substitution and Output Effects of a Change in Factor Price
Land Markets
o Rent and the Value of Output Produced on Land
The Firm’s Profit-Maximizing Condition in Input Markets
Input Demand Curves
o Shifts in Factor Demand Curves
 The Demand for Outputs
 The Quantity of Complementary and Substitutable Inputs
 The Prices of Other Inputs
 Technological Change
Resource Allocation and the Mix of Output in Competitive Markets
o The Distribution of Income
Chapter 11: Input Demand: The Capital Market and the Investment Decision (p. 221 – 234)
 Capital, Investment, and Depreciation
 Capital Income: interest and Profits
 Financial Markets in Action
Chapter 12: General Equilibrium and the Efficiency of Perfect Competition (p. 241 – 257)
 General Equilibrium Analysis
 Market Adjustment to Changes in Demand
 Formal Proof of a General Competitive Equilibrium
 Allocative Efficiency and Competitive Equilibrium
 The Efficiency of Perfect Competition
 Perfect Competition versus Real Markets
 The Sources of Market Failure
o Imperfect Markets
o Public Goods
o Externalities
o Imperfect Information
UNIT 3: MARKET IMPERFECTIONS AND THE ROLE OF GOVERNMENT
Chapters 13 - 16
CHAPTER 13: Monopoly and Antitrust Policy (p. 261 – 279)
 Imperfect Competition and Market Power: Core Concepts
o Forms of Imperfect Competition and Market Boundaries
 Price and Output Decisions in Pure Monopoly Markets
o Demand in Monopoly Markets
o Perfect Competition and Monopoly Compared
o Monopoly in the Long Run: Barriers to Entry
 The Social Costs of Monopoly
o Inefficiency and Consumer Loss
o Rent-Seeking Behavior
 Price Discrimination
 Remedies for Monopoly: Antitrust Policy
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o Major Antitrust Legislation
CHAPTER 14: Oligopoly (p. 283 - 300)
 Market Structure in an Oligopoly
 Oligopoly Models
o The Collusion Model
o The Price – Leadership Model
o The Cournot Model
 Game Theory
o Repeated Games
o A Game with Many Players: Collective Action Can Be Blocked by a Prisoner’s
Dilemma
 Oligopoly and Economic Performance
o Industrial Concentration and Technological Change
 The Role of Government
o Regulation of Mergers
CHAPTER 15: Monopolistic Competition (p. 303 – 316)
 Industry Characteristics
 Product Differentiation and Advertising
o How many Varieties?
o How Do Firms Differentiate Products?
o Advertising
 Price and Output Determination in Monopolistic Competition
o Product Differentiation and Demand Elasticity
o Price / Output Determination in the Short Run
o Price / Output Determination in the Long Run
 Economic Efficiency and Resource Allocation
Chapter 16: Externalities, Public Goods, and Social Choice (p. 319 – 341)
 Positive and Negative Externalities
 Externalities and Environmental Economics
o Marginal Social Cost and Marginal-Cost Pricing
o Private Choices and External Effects
o Internalizing Externalities
 Public (Social) Goods
o The Characteristics of Public Goods
o Income Distribution as a Public Good
o Public Provision of Public Goods
o Optimal Provision of Public Goods
o Local Provision of Public Goods: Tiebout Hypothesis
o Mixed Goods
 Social Choice
o The Voting Paradox
o Government Inefficiency: Theory of Public Choice
o Rent-Seeking Revisited
 Government and the Market
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