AP Economics

Ms. Kristin Lubenow

Fall 2014
Microeconomics Course Syllabus

Course Description
AP Economics is a yearlong college level course designed to prepare students for the AP Micro
and Macroeconomic examinations in May. All students are expected to commit to the course for the entire
year and take both the Micro and Macro AP Exams. In the process of preparing for the exams students will
gain a thorough understanding of individual decision makers, both consumers and producers, within the
larger economic system. They will also develop critical thinking skills through the understanding,
application and analysis of fundamental economic concepts. Students will be expected to apply economic
logic and theoretical models to a variety of real-world and hypothetical situations. Economics is the
science of scarcity. Because we live in a world of finite resources and unlimited wants, we are constantly
being forced to make choices. Economics studies how choices are made, by individuals, by societies and
by nations.
Text
Economics: Principles, Problems, and Policies by McConnell and Brue 17th edition
Grading Policy
Grading will be done on a point system. Assignments are awarded variable points depending on
length and degree of difficulty. At the end of each grading period, the total cumulative points will be used
to determine the letter grade, using the following scale: 100 - 90% = A, 89 - 80% = B, 79 -70% = C, 69 60% = D, 59% and below = F. Your semester grade is cumulative based on all points accrued over the
course of the semester. Therefore, it is important that you dont fall behind, and it is better to turn in
something that shows you tried than to turn in nothing at all. I will update school loop grades
approximately every two weeks.
Course Work:
Homework/Classwork: Problem sets/worksheets, Financial literacy assignments (spending log, college
years) & Notes
Marketplace Journals
Unit Exams, Quizzes (weekly), Cumulative Final
Class Participation: Problems @ the board, activities/simulations and discussions

Class Procedures and Student Expectations

1. Attendance is important to your success in this class, in terms of comprehension of the material, class
participation grade, and general respect for the teacher and your peers. Students are expected to be in class,
on time and prepared each day. Your attendance and attentiveness is crucial to your success in this class.
Because of the amount of material that needs to be covered excessive tardiness and absences will be
reflected in your grade and citizenship. If you know ahead of time that you will be absent please let me
know as soon as possible.
2. Late Assignments and Missed Exams: Those students with an excused absence may turn in late
assignments upon their return to class without being penalized. However, all late work, with an unexcused
absence, will have a deduction of 50% and will not be accepted once it has been returned to the class.
Makeup exams are given at the discretion of the instructor. I may choose to give a makeup or double the
grade on the next exam. Therefore, if you foresee an absence (e.g. medical appointment, family obligation)
see me as soon as possible to discuss the situation.
3. Suggestions for success: Save all of your papers and keep them in an economics notebook; many of these
papers will be useful in preparing for exams. Notes are very, very important. Good note taking from class
and the text will prove to be extremely beneficial for studying for the exams.

4. Academic honesty and Student Behavior: Students are expected to complete assignments on time and on
an individual basis. Anyone caught cheating will fail that assignment. Students are expected to be
respectful of the teacher and their peers. The classroom should be a safe supportive environment where
students feel free to ask questions and voice opinions. Students are expected to enroll in both semesters of
AP Econ in order to fulfill their economics graduation requirement. Students who drop the class after the
Fall semester must enroll in regular Economics in the Spring semester.
Office Hours
Block 3, 5 & 7 in the Social Studies Office, Room 232. Ext. 3232 or by appt.
Feel free to contact me by email. My email address is lubenowk@sfusd.edu
Course Outline
I. An Introduction to Economics and the Economy
Unit One
Chapter 1
Limits, Alternatives, and Choices
Chapter 5
The US in the Global Economy (pp. 89 92)
Chapter 2
The Market System and the Circular Flow
Key Concepts:
CH 1: Economics: Microeconomics & Macroeconomics, Scarcity, Choice, Opportunity Cost, Trade-off,
Marginal Benefit/Marginal Cost Analysis, Utility, Ceteris Paribus, Categories of Resources/Factors of
production: Land, Labor, Capital & Entrepreneurship, Production Possibilities Model, Optimal Output,
Economic Growth.
CH 5: Absolute Advantage, Comparative Advantage & Terms of trade.
CH 2: Economic systems: Market & Command, Property Rights, Specialization, Division of Labor,
Consumer Sovereignty, Invisible Hand, Efficiency, Incentives, Circular Flow Model, Resource Market &
Product Market.
Graphs/Charts:
CH 1: Production Possibilities Curves (Constant & Increasing Opportunity Costs & Economic Growth),
CH 5: AA & CA Chart
CH 2: Circular Flow
Assessment: Multiple Choice test with short answer on PPC and Circular Flow
Exam Date: Tues 9/2
II. Microeconomics of Product Markets
__________
Unit Two
Chapter 3
Demand, Supply, and Market Equilibrium
Chapter 18
Extensions of Supply and Demand Analysis (pp. 352 354)
Key Concepts:
CH 3: Markets, Law of Demand, Diminishing Marginal Utility, Income Effect, Substitution Effect,
Individual demand vs. Market demand, Determinants of Demand, Normal goods, Change in Demand vs.
Change in Quantity demanded, Law of Supply, Determinants of Supply, Change in Supply vs. Change in
Quantity Supplied, Market Equilibrium, Equilibrium Price and Quantity, Market Surplus, Market Shortage,
Productive efficiency, Allocative Efficiency, Price Controls: Price Ceilings and Floors.
CH 18: Consumer and Producer Surplus, Deadweight loss.
Graphs/Charts:
CH 3: Supply and Demand Graph; Supply and Demand Graph w/ Price Controls;
CH18: Supply and Demand Graph w/ Consumer and Producer Surplus
Assessment: Market Place Journal #1
Quiz on Graphs
Multiple Choice Exam with AP Free Response Question on Supply and Demand
Exam Date: Tues 9/16

Unit Three

Chapter 18
Chapter 29
Chapter 19

Extensions of Demand and Supply Analysis

Economics of Taxation (pp. 573-576)
Consumer Behavior and Utility Maximization

Key Concepts:
CH 18: Price Elasticity of Demand, Midpoint Formula, Interpretations of Ed: Elastic, Inelastic, Unit
Elastic, Perfectly Elastic, Perfectly Inelastic, Total Revenue Test, Determinants of Price Ed, Cross-Price
Elasticity of Demand, Income Elasticity of Demand, Price Elasticity of Supply: Short run vs. Long run.
CH 29: Excise Tax, Tax Incidence, Deadweight loss, Allocative Efficiency.
CH 19: Utility, Utils, Law of Diminishing Marginal Utility, Total Utility, Marginal Utility, Consumer
Choice, Optimal Purchase Rule, Utility Maximizing Rule, Income Effect, Substitution Effect
Graphs/Charts:
CH 18/29: Supply and Demand Elasticity Graphs w/ Tax; Elastic Demand/Inelastic Supply & Inelastic
Demand/Elastic Supply
CH 19: Total Utility Curve, Marginal Utility Curve
Assessment: Market Place Journal #2
Multiple Choice Exam with Free Response Questions: Taxation, Elasticity & Marginal Utility
Exam Date: Mon 9/29 - Tues 9/30
Unit Four

Chapter 20

The Costs of Production

Key Concepts:
CH 20 Economic Costs, Implicit Costs, Explicit Costs, Normal Profit, Economic Profit, Accounting Profit,
Short Run: Fixed Plant, Long Run: Variable Plant, Total Product, Marginal Product, Average Product, Law
of Diminishing Returns, Fixed Costs, Variable Costs, Total Costs, Average Variable Costs, Average Fixed
Costs, Average Total Costs, Marginal Costs, Long Run Cost Curve, Economies of Scale (Increasing
Returns to Scale), Constant Returns to Scale, Diseconomies of Scale (Decreasing Returns to Scale),
Minimum Efficient Scale, Natural Monopoly, Sunk Costs
Graphs/Charts:
SR Stages of Production: Total Product, Marginal Product, Average Product;
SR Total Cost Curves (Fixed, Variable & Total);
SR Average and Marginal Cost Curves (Average Variable, Average Fixed, Average Total and Marginal
Costs)
LR Average Total Costs, Economies of Scale, Constant Returns to Scale & Diseconomies of Scale
Assessment: Quiz: Multiple Choice and FRQ: Costs
Quiz Date: Thursday 10/9
Unit Five

Chapter 21

Pure Competition

Key Concepts:
Four Market Models: Characteristics of Pure competition, Pure monopoly, Monopolistic Competition,
Oligopoly, Price Takers, Average Revenue, Total Revenue, Marginal Revenue, Profit maximization, Loss
minimization, Total-Revenue-Total Cost Approach, Break-even point, Marginal-Revenue-Marginal Cost
Approach, MR = MC rule, SR Profit, SR Loss Minimization, SR Shut Down, PC SR Firm Supply Curve,
Short Run vs. Long Run Equilibrium and adjustments, LR Supply Constant Cost Industry, LR Supply
Increasing Costs Industry, LR Supply Decreasing Costs Industry, Productive Efficiency, Allocative
Efficiency
Graphs/Charts:
Perfectly competitive market/firm graphs: SR Profits, SR Loss, SR Shut Down, SR Profit to LR
Equilibrium, SR Loss to LR Equilibrium
LR Supply Constant Cost Industry, LR Supply Increasing Cost Industry
Assessment: Graphing Quiz;
Group FRQs;
Multiple Choice Exam and FRQ: PC Market and Firm
Exam Date: Tuesday 10/28

Unit Six

Chapter 22
Chapter 23

Pure Monopoly
Monopolistic Competition and Oligopoly

Key Concepts:
CH 22:Characteristics of Pure Monopoly, Relationship between Price and Marginal Revenue, Single Price
Monopolist, Price Discriminating Monopolist, Natural Monopoly, Regulation, Rent-seeking, Xinefficiency, Allocative Efficiency
CH23: Characteristics of Monopolistic Competition, Excess Capacity, Characteristics of Oligopoly,
Homogenous, Differentiated, Strategic Behavior, Mutual Interdependence, Concentration Ratio, Herfindahl
Index, Collusion, Cartels, Tacit Understanding, Game Theory, Pay Off Matrix, Dominant Strategy, Nash
Equilibrium
Graphs/Charts:
CH 22: Single-Priced Monopoly Profits, Single-Priced Monopolist Loss, Price Discriminating Monopolist,
Natural Monopoly: Regulated to Socially Optimal and Fair Return
CH 23: Monopolistic Competition SR Profits, SR Loss, LR Equilibrium, Collusive Oligopoly, Pay Off
Matrix
Assessment: Juice Project (Group) 11/13 1/14; Multiple Choice Exam with FRQ
Exam Date: Thursday 11/20
III. Microeconomics of Government
Unit Seven
Chapter 28
Government and Market Failure
Chapter 4
Public Sector (pp.71 -74)

______________

Key Concepts:
Public Goods, Private Goods, Rivalry, Excludability, free-rider problem, Marginal-Cost-Marginal-Benefit
Rule, Negative Externality, Positive Externality, Coase Theorem, Government Intervention, Information
Failures, Asymmetric Information.
Graphs/Charts:
Positive and Negative Externality graphs;
Assessment: Quiz: Multiple Choice with FRQ: Externalities
Quiz Date: Tuesday 12/2
IV. Microeconomics of Resource Markets
Unit Eight
Chapter 25
The Demand for Resources
Chapter 26
Wage Determination
Chapter 27
Rent, Interest, Profit and Labor (pp. 527 529)

_________

Key Concepts:
CH 25: Derived Demand, Marginal Revenue Product, Marginal Product, Product Price, Marginal Resource
Cost, MRP =MRC Rule, Wage Taker, Substitution Effect & Output Effect of Substitute Resources,
Complementary Resources, Optimal Combination of Resources, Least-Cost Rule, Profit-maximizing Rule
CH 26: Purely Competitive Labor Market, Monopsony Model, Wage Differentials, Human Capital,
Compensating Differences, Efficiency Wages.
CH 27: Economic Rent
Graphs/Charts:
Purely Competitive labor market/firm, Monopsony Model, Economic Rent
Assessment: Multiple Choice Quiz with FRQ
Quiz Date: Wednesday 12/10
AP Comprehensive Microeconomics Final: 60 Multiple Choice and 3 Free Response Questions
Finals Week 12/12 -12/19