Advanced Placement Microeconomics
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1 CENTENNIAL HIGH SCHOOL 4707 North Road Circle Pines, MN Social Studies Department Advanced Placement Microeconomics Mr. Joseph Held, Instructor Advanced Placement Microeconomics "[Economics] is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusions." John Maynard Keynes--General Theory of Economics Course Description: Micro Economics is a one semester (18 week) study of how individuals, firms, and organizational structures make rational economic decisions. Demand and supply analysis will be developed to demonstrate how market prices are determined; how they determine an economy's allocative mix of goods and services and factors of production; and how goods and services are distributed throughout the economy. We will evaluate the strengths and weaknesses of economic decision-makers by employing concepts of efficiency and equity. We also analyze and evaluate the effects of government intervention. Throughout the course, learning emphasis is placed on reasoned, logical argument. Accurate graphing, labeling, and description of economic concepts throughout the class is expected. As the quote by Keynes suggests, the purpose of this course is not to develop or solicit a normative or political point of view, but rather to use economics as a method and model for decision-making. Microeconomics course sequence and assessments This class will be broken into 4 large units covering the required AP College Board curriculum. Please use the following table to organize your ongoing study and review time while preparing for these summative assessments. Unit 1: Basic Economic Concepts: Modules 1-9, Scarcity, choice, and Opportunity Cost Production Possibilities Curve Comparative Advantage, Specialization, and Trade 1
2 Economic Systems Marginal analysis Supply and Demand o Market Equilibrium o Determinants of Supply and Demand Price and quality controls Consumer surplus, producer surplus, and market efficiency Tax Incidence and Deadweight Loss Unit 2: Product Markets and Consumer Choice: Modules 51-56, Elasticity o Price, income, and cross elasticities of demand o Price elasticity of supply Theory of Consumer Choice o Total utility and marginal utility o Utility maximization: equalizing marginal utility per dollar o Individual and market demand curve o Income and substitution effects Production and Costs o Production functions: short and long-runs o Marginal product and diminishing returns o Short run costs o Long run costs and economies of scale o Cost minimizing input combination o Profit: Accounting versus economic profits Normal profit (i.e. zero economic profit) Market failure and the role of government o Externalities Marginal social benefit and marginal social cost Positive externalities Negative externalities Remedies o Public goods Public versus private goods 2
3 Provision of public goods o Public policy to promote competition Antitrust policy Regulation Unit 3: Market Structures: Modules Perfect Competition o Profit maximization Rule of MR=MC o Short=run supply and shutdown decision o Firm and market behaviors in short-run and long run equilibrium o Efficiency and perfect competition Monopoly o Sources of market power o Profit maximization o Inefficiency of monopoly o Price discrimination o Natural monopoly Oligopoly o Interdependence, collusion, and cartels o Game theory and strategic behavior Monopolistic competition o Product differentiation and role of advertising o Profit maximization o Short-run and long-run equilibrium o Excess capacity and inefficiency Unit 4: Factor Markets and Income Distribution Modules Factor Markets o Derived factor demand o Marginal revenue product o Labor market, Capital markets, and firms decision to employ Wage determination in competitive and monopsony factor markets 3
4 o Market distribution of income Required Texts: Krugman s Microeconomics for AP second edition, authored by Margaret Ray and David Anderson Recommended Texts: 5 Steps to a 5: AP Microeconomics edition, authored by Eric Dodge Study Procedure: While the syllabus details the topics and assignments, students have found it helpful to follow these study procedures. Some of these procedures require a computer and valid student address. Students without access may consult the CHS staff to determine the availability of school computers. 1. Use daily for this class. You are encouraged to check this regularly and to use it as a class study resource. 2. Read your text so that you can define the terms! Read EVERYTHING in each chapter! A clear working knowledge of economic terms is essential to success in this class! 3. Your personal note binder becomes your best review tool. Add your own notes to each PowerPoint. You are encouraged to share your notes with other students, to check the accuracy of your own notes, to clarify misunderstandings, to assist in solving all practice questions, and in completing some of the FRQ questions. 4. You are encouraged to collaborate on all practice exercises and textbook assignments. 5. Use and save all PowerPoint notes delivered in class. Information in each unit will be used repeatedly throughout the remainder of the course. This course is highly sequential. Think of it as a row of dominos..miss one key understanding and the remainder of the class becomes much more difficult. 6. Organize a study group of fellow classmates that you will work frequently in class with. These students are also your resource when you miss class to collect handouts, papers, questions, and homework tasks. 7. Pace of instruction will change as the semester goes on due to increasingly complex concepts being studied. Once core topics have been covered students will begin 4
5 completing sample AP tests from prior years to gain practical knowledge of the AP Exam. 8. Attend review sessions before the exam even when you think you are prepared. Data shows students who skip all review sessions fall off nearly 1 entire AP score (scale of 1-5) from their final exam grades in the class. Exams 1. Each unit will include a summative assessment. These assessments must be taken within one week if you happen to be absent on the day of examination. All other assignments, quizzes (announced or unannounced), remedial problems, extra credit opportunities, RAT s are due at the announced date. Unless school is canceled, there are no late assignments accepted under any circumstances. 2. All students are expected to have an address. We will make frequent use of schoology.com for homework and formative assessments to measure student progress. It is crucial that you complete these assignments on time as required. Evaluation: You final grade is dependent upon your scores on summative unit exams, parallel, and equated AP tests based on the textbook; frequent short quizzes, your performance on the formative assessments; and your participation in random assessment tests (RATs). 20% Required Homework-that include the following: Homework *Each module has a schoology quiz. *FRQ s added later in the class Measures your understanding of the economic concepts and your ability to understand and analyze graphical materials and economic data, variables. These are Free Response Questions from past AP exams. Students will be asked to apply their knowledge in ways they have not been asked to do so previously. Problem solving and critical thinking skills are emphasized here!! 25% Independent Formative Assessments -- class work/problems/projects/panel, group work and random quizzes. RATs (Random Assessment Tests) Random class quizzes over vocabulary and practice questions/problems. These may be unannounced. Some RAT s are taken in class while others are completed via Schoology (based on 5
6 available class time) 55% Summative Assessments. Course grades are largely determined by your performance on summative tests indicated below; Problem Sets to be taken after each of the four units. IMPORTANT NOTE: Summative Tests are ROLLING CUMULATIVE! Unit one will be included in Unit two assessment, both units one and two will be included in Unit three assessments, etc. This ensures students will continue to use skills developed early in the semester all the way through to the Final Exam. This also means that each assessment is likely to grow in size and difficulty and may often take more than one class period to complete. 40% 4 P.S. (Problem Sets) Parallel and equated AP Microeconomics questions that measure your ability to analyze and evaluate economic concepts. Exams are planned to be 50 questions and may occasionally take more than 1 class period. 15% *Final Examination Comprehensive summative examination measuring your understanding of economic concepts and your ability to apply economic concepts to new situations. Graphical and data analysis problems measure your ability to interpret and to manipulate, and create new models. Extra Credit Opportunities will not be given in this class. CHS AP Microeconomics Final Exam: Last week of the semester! 60 M/C Questions in a maximum of 70 minutes 3 FRQ Questions in a maximum of 50 minutes This Spring s AP Microeconomics test is on May 15 th,
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