AP Microeconomics

Instructor:
Email:
Room:

Larry Alsobrooks
Larry.Alsobrooks@pccsk12.com
Plymouth - 109B

Course: AP Microeconomics
The purpose of the AP course in microeconomics is to give students a thorough understanding of the principles
of economics that apply to the functions of individual decision makers, both consumers and producers, within
the economic system. It places primary emphasis on the nature and functions of product markets and includes
the study of factor markets and of the role of government in promoting greater efficiency and equity in the
economy. (from College Board)
Goal: Every student will master the concepts of AP Microeconomics and score a 5 on the AP test.
AP Exam- Friday May 12th, 2017 @ 8:00 am
Content and Schedule Overview
Unit 1: Basic Economic Concepts (8-14% of Exam)
Scarcity, Choice, and Opportunity Cost
Production Possibilities Curve
Comparative Advantage, Absolute Advantage, Specialization and Trade
Economic Systems
Property Rights and the Role of Incentives
Marginal Analysis
Unit 2: Supply and Demand (15-20% of Exam)
Market Equilibrium
Determinants of Supply and Demand
Price and Quantity Controls
Elasticity
Price, Income, and Cross-Price Elasticities of Demand
Price Elasticity of Supply
Consumer Surplus, Producer Surplus, and Allocative Efficiency
Tax Incidence and Deadweight Loss
Unit 3: Theory of Consumer Choice (5-10% of Exam)
Total Utility and Marginal Utility
Utility Maximization: Equalizing Marginal Utility Per Dollar
Individual and Market Demand Curves
Income and Substitution Effects
Unit 4A: Production and Costs (10-15% of Exam)
Production Functions: Short and Long Run
Marginal Product and Diminishing Returns
Short-Run Costs
Long-Run costs and economies of scale
Cost Minimizing Input Combination and Productive Efficiency

Unit 4B: Firm Behavior and Market Structure (2535% of Exam)

Profit
Accounting Versus Economic Profits
Normal Profit
Profit Maximization: MR=MC rule
Perfect Competition
Profit maximization
Short-run supply and shutdown decision
Behavior of firms and markets in the short-run and in the long-run
Efficiency and perfect competition
Perfect Competition Graphs
Monopoly
Sources of Market Power
Profit Maximization
Inefficiency of Monopoly
Price Discrimination
Natural Monopoly
Oligopoly
Interdependence, Collusion, and Cartels
Game Theory and Strategic Behavior
Dominant Strategy
Nash Equilibrium
Monopolistic Competition
Product Differentiation and Role of Advertising
Profit Maximization
Short-Run and Long-Run Equilibrium
Excess Capacity and Inefficiency
Unit 5: Factor Markets (10-18% of Exam)
Derived Factor Demand
Marginal Revenue Product
Hiring Decisions in the Markets for Labor and Capital
Market Distribution of Income
Unit 6: Public Finance (12-18% of Exam)
Externalities
Marginal Social Benefit and Marginal Social Cost
Positive Externalities
Negative Externalities
Remedies
Public Goods
Public versus Private Goods
Provision of Public Goods
Public policy to Promote Competition
Antitrust Policy
Regulation
Income Distribution
Equity

 Sources and Measures of Income Inequality

Required Materials:
Text: McConnell, Brue and Flynn, Economics 18th Edition. McGraw-Hill/Irwin. Boston 2009.
Study Guide Booklet: Walstad, William B. Study Guide for use with Economics. McGrawHill/Irwin. Boston 2009.
*Textbook and study guide booklet only needed in class when notified by teacher
Sturdy folder / 3 ring binder / Notebook (For lecture notes and classroom materials)
Writing utensils (different color pen/pencils for homework corrections and graphs will be helpful)
Course Policies
Absences and Makeup Work
Students with excused absences shall be allowed to make up the work they missed, without penalty, if submitted in a
timely manner (An additional day given per excused absence day) following the absence.
The following scoring system will be followed for students turning in late work, without excused absences:
1 Day Late - 80% of total points earned on the assignment
2 Days Late - 70% of total points earned on the assignment
3 Days Late 60% of total points earned on the assignment
4 5 Days Late 50% of total points earned on the assignment
No work will be accepted that is 6+ days late and no work will be accepted after the end of any card marking period.
Students missing a test shall take it at the earliest available time, typically (unless the teacher specifies otherwise)
during class the day the student returns. The teacher may also designate a specific time and location for students to
make up tests. The time may be during class, before or after school or at another time as agreed upon by the student
and teacher.

Class Participation
Students will be introduced to the course material through a variety of methods such as presentations, class
discussions, reading materials, videos, and a variety of other approaches. Students will be expected to keep a
notebook with course notes, use a computer for both individual and group projects, work both individually and in
cooperative groups, participate in class discussions, and be respectful to all members of the classroom.

Classroom Rules / Expectations

Be in class, prepared (notebook/folder, writing utensil) and on time.

Be respectful to the teacher, students, yourself, and the environment.
Follow directions, instructions and procedures of the teacher and classroom.
Actively Participate in the learning process.
No electronics seen in class (without Teacher permission). This includes cell phones, iPods, game systems,
etc.
No eating food in the classroom. I have several students in my classes this year with serious food allergies.

Grading Policy
Grade Distribution
Percent
100%
93 - 99.9%
90 92.9%
87 89.9%
83 86.9%
80 82.9%
77 79.9%
73 76.9%
70 72.9%

Letter Grade
A+
A
AB+
B
BC+
C
C-

67 69.9%
63 66.9%
60 62.9%
59.9% and below

D+
D
DE

Semester grades will be computed as follows:

1st Card Marking and 2nd Card Marking
Cumulative Semester Exam

- 80% of final semester grade (running total)

- 20% of final semester grade

Types of Assessments
Students are expected to demonstrate their learning through a variety of assessments and assignments which may
include tests, quizzes, individual and group projects, writing assessments, and the cumulative semester exam.

Quiz / Test / Exam Retakes

If you are not satisfied with your grade on an assessment, under certain circumstances you may be able to retake
your assessment in an effort to improve your initial grade.

Extra Credit
Students should not plan on extra credit being offered in this course.

On-line Grades
Grades will be updated on a regular basis. Please check grades on a regular basis and notify me of any issues in a
timely manner.

Practice: As an Advanced Placement course, the expectation is that students will be given homework most
nights. The length of homework assignments will vary. COMPLETING PRACTICE IN EARNEST WILL
RESULT IN THE GREATEST CHANCE OF SUCCESS FOR THIS COURSE. AP Economics is about
showing me and the College Board that you can apply what you learn. Each assignment will help prepare
you to master this difficult skill.
Cheating: Copying another students work will not be tolerated under any circumstances. Copying will result
in a zero for all parties involvedno exceptions or make ups. The offense will also be noted on Zangle/Mi-Star.
Greater consequences may occur depending on the severity of the infraction, including referral.
Supplemental Resources: There are many resources that can help you in understanding the content of AP
Economics. However some are poorly created and outright wrong for purposes in our class. If you ever have
questions about whether or not a resource is valuable, do not hesitate to ask.
On your phone/tablet: McGraw-Hill has excellent apps for practice that include understanding concepts to
practice multiple choice questions. Simply type "McGraw-Hill AP Economics" and you should find the
apps.
Books: Princeton Review and Pearson make the best AP Econ prep books, but just make sure whatever you
purchase is approved by the College Board (they make the exam). In addition, your study guide workbook
(paperback book) that you received with your textbook is an excellent resource.
Videos: I will supply some decent video clips you can explore to help with many of the concepts we will
discuss in class. Be aware that some videos are very general and will not help for AP. In addition, some
videos are just plain full of wrong information (if it's on the internet it must be true though, right?)
WRONG!