Download Course Content

AP Microeconomics
Teacher: S. Baumann
Email: [email protected] (the best way to contact me)
Blog: http://hillgrovehighschool.typepad.com/scott_baumann/
Course Textbook: McConnell and Brue. Economics (17th Edition). McGraw Hill, 2008. (replacement
cost: ~$116)
Textbook Website: http://highered.mcgraw-hill.com/sites/0073126632/student_view0/
College Board AP Microeconomics website: http://www.collegeboard.com/student/testing/ap
/sub_miceco.html?micro
Required Outside Readings:
- The Undercover Economist (by Tim Harford)
Supplemental Reading (optional):
- Economics by Example (by David A. Anderson)
- New Ideas from Dead Economists (by Todd G. Buchholz)
- Naked Economics (by Charles Wheelan)
- Freakonomics (by Stephen Dubner and Steven Levitt)
- Super Freakonomics (by Stephen Dubner and Steven Levitt)
- The Price of Everything (byRussell Roberts)(novel)
- The Fatal Equilibrium (by Marshall Jevons)(novel)
Supplemental Workbooks (STRONGLY recommended that you buy one of these):
- 5 Steps to a 5 – AP Microeconomics
- Barron’s AP Microeconomics
- Kaplan AP Microeconomics
Course Objective: AP Microeconomics is for the exceptionally studious high school student who wishes
to earn college credit in high school through a rigorous academic program. This course is an introduction
to microeconomics. Microeconomics introduces students to the cost–benefit analysis that is the economic
way of thinking. This analysis is used to understand smaller segments of the economy—specifically,
consumers and producers—as they interact in output markets and resource markets, and to understand the
government’s impact on these specific economic units. Emphasis will be placed on preparation for the
AP Microeconomics exam given in May. Higher expectations will be the standard for all assignments,
tests, and quizzes.
College Board AP Microeconomics Exam:

May 2014 - 60 multiple choice questions (70 minutes) which counts as 2/3rd of your grade & three
(3) Free Response Questions (50 minutes w/ a 10 minute reading period) which count as 1/3rd of
your grade.
AP Microeconomics
Course Content:
Unit I: Basic Economic Concepts (Chapters: 1, 2)
1. An introduction to economics and the economy
2. The economizing problem.
2. Pure capitalism and the market system
Topics covered are:
 Methodology
 The economic way of thinking
 The broad social goals of society
 Scarcity
 Opportunity cost
Production possibilities curve
Implicit and explicit costs
 Economic systems: tradition, command, market
 Basic economic questions
 Circular flow of economic activity
 Positive and normative thinking
 Pitfalls of economic thinking
 Absolute and comparative advantage
 Marginal analysis
1. Basic Economic
Concepts A. Scarcity
choice, opportunity cost.
1. Basic Economic
Concepts B. Production
Possibilities Frontier
1. Basic Economic
Concepts D. Economic
Systems.
1. Basic Economic
Concepts C. Comparative
advantage, specialization
and trade.
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - Unit II: The Nature and Function Product Markets (Chapters: 3, 18, 19)
3. Understanding Individual Markets:
II. The nature and
Demand and Supply
structure of product
18. Demand and Supply: Elasticities and applications
markets. A. Supply and
19. Utility and utility maximization
demand 1. Market equilibrium
Topics covered:
 The reasons for changes in quantity demanded
and quantity supplied through changes in price.
 The significance of equilibrium in determining
efficiency
 The assumptions and determinants of supply
and demand in order to use models of markets
for description, analysis and prediction
 The role and significance of prices in a market
economy
 The concepts of Elasticities of supply and
demand
 The reasons for and consequences of price
floors and ceilings
II. The nature and
structure of product
markets. A. Supply and
demand. 2. Determinants
of supply & demand
II. The nature and
structure of product markets
A. Supply and demand
4. Elasticity
II. The nature and
structure of product markets
A. Supply & demand
3. Price controls
AP Microeconomics
- - - - - - - - - - - - - - - - -- - - - - - - - - - - Unit III: Business and Market Structure (Chapters: 4, 20, 21, 22, 23, 30)
4. The mixed economy: private and public sectors
20. The costs of production
21. Pure competition
II. The nature and
22. Pure Monopoly
structure of product
23. Monopolistic competition and oligopoly
markets.
30. Antitrust policy and regulation
C. Production & costs
Topics covered:
 Characteristics, situations, advantages and disadvantages of sole proprietorships, partnerships
and corporations
 Costs, implicit and explicit costs
 Revenue, costs and profits
 Diminishing marginal returns
 Normal profits
 Economic profits
Long run/short run
Costs of Production (AVC, ATC, AFC, MC)
 Profit maximization/loss minimization
 The functions of profit in a market economies
 Economies, constant returns and diseconomies of scale
 The MR = MC rule for all firms for determining output for all firms
 Perfect competition- characteristics, cost structures, types of competition, conditions and
examples.
 Monopolies- characteristics, barriers to entry, cost structures, types of competition, conditions,
results of and examples
 Monopolistic competition- characteristics, barriers to entry, cost structures, types of competition,
conditions, results of and examples
 Oligopolies- characteristics, barriers to entry, cost structures, types of competition, conditions,
results of and examples
 Evaluate examples of oligopolistic mutual interdependence
 Types, purposes behind and results of regulation of
businesses, particularly monopolies
IV. Role of the government
C. Public policy
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - Unit IV: The Factor Market (Chapters: 25, 26, 27, 34)
25. The demand for resources
26. Wage determination
27. Rent, interest, and profit
34. Labor market issues: unionism,
discrimination, immigration
Topics covered:
 Derived demand – MRC=MRP rule
 Least cost combination of resources
III. Factor Markets
A. Derived factor demand
III. Factor Markets.
A. Marginal revenue product
III. Factor Markets.
C. Labor markets and firms’
hiring of labor.
AP Microeconomics


Market distribution of income
III. Factor Markets.
Causes and results of income inequality
D. Market distribution of income
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - -
Unit V: The role of the government in the Economy (Chapters: 28, 6, 7, 8, 11, 12, 14, 34)
28. Government and market failure: public goods, externalities, and information
problems
6. Measuring domestic output, national income
I. Basic Economic Concepts
and the price level.
E. Property
7. Economic Growth and
Macroeconomic instability: unemployment
and inflation
11. Fiscal policy, budget deficit, public debt
12. Money and banking
14. Monetary policy
IV. Role of the government
34. Income Inequality and poverty
A. Externalities
Topics covered:
 The economic functions of government
 Public goods and services
 Positive and negative externalities
 Market failure
 Common pool resource issues
 Distribution of income – Lorenz curve
IV. Role of the
government B.
B. Public goods
D. Income distribution
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - Unit VI: The International Economy (Chapters: 5, 35, 36)
5. The United States in the Global Economy
35. International Trade
36. Exchange rates, the balance of payments and trade deficits
Topics covered:
 Exchange rates
 Absolute and comparative advantage
 Reasons for and results of trade protectionism
 Theories of free trade protectionism
 Trading blocs
 Globalization
The italicized numbered references are to the College Board Advanced Placement AcornBook for
Microeconomics.
***This syllabus is subject to change at the teacher’s discretion***
AP Microeconomics
Attendance/Make-up Work:
Students with excused absences are allowed and expected to make up work and tests in accordance with
school policy (See Handbook). Students have 5 consecutive days after an absence to complete new work
assigned during their absence. The student is responsible for picking up and completing missed
assignments without disrupting the flow of the class and for coming to the teacher to schedule a
date for make-up tests.
Grading Procedure:
Unit Tests
Quizzes & Reading Assessments
Class Work & Homework
EOCT
40%
25%
20%
15%
Course Supplies:
-
Pencils
Pens (blue or black ink)
Notebook or Binder
Candy/Drinks/Gum Policy:
Candy or food is not allowed. The only beverage permitted is water. Gum is allowed as long as students
continue to be responsible with it.
Classroom Expectations:
1. Be on time and prepared for class - reading & homework assignments, paper, pens,
pencils, notebook, & book (everyday)
2. Stay on task – class time is valuable; your participation grade could be affected
3. Do your own work – copying from others, sharing information, & cheating on tests/quizzes are
unacceptable
4. Participate in class activities and/or discussions
5. Respect each other and each other’s property