ࡱ> [ VCbjbjYY ;p\;p\:q  ||8Ldjp````` jjjjjjj$lo3j B ^ 3j||``Hj!!! ^|8`` j! j!!n9`yi``݋  ^Afi^j0jfVp\!LVp@yiVpyi ! 3j3j! j Vp  > B: Sharpstown High School 2014 AP MicroeconomicsTeacherOffice, Cell Phone HoursMr. WeiClass Room Number: 230 Cell Phone Number: Cell Phone Office Hours: 6:00 PM 10:00 PM Course Description AP Econ is a fast paced college-level course that focuses on the decision making of individuals, businesses, and the government. Students will study a variety of economic theories and analyze their practical application in the real world. It will NOT be easy and it will NOT always be fun. This semester-long course will cover microeconomics; micro focuses on the supply and demand for products, the labor markets, and the role competition plays in a free market system. You are expected to take the AP exam in May. This course is designed for serious AP students only. Be prepared to stretch further than youve ever been expected to stretch and work harder than you ever thought possible. This class will prepare you to compete with your future peers in college and potentially allow you to earn university credits by passing the AP exam IF YOU PUT IN THE TIME AND EFFORT. We need to understand how to persevere through rigorous academic work. Extensive math skills are not required; however, the ability to analyze graphs and charts is essential. College-level textbooks and readings are essential. However, a textbook is not enough. For students to do well on the AP Exam, students must be prepared to use current examples and applications that may not be in the textbook. This requires that students have access to current political news. Students will be held accountable for SELF-INITIATING the understanding of current national political issues and should allocate time every week to read and study current events. Course Objectives Students will be able to apply ECONOMIC ANALYSIS to a variety of real world situations to improve their personal and civic decision-making skills. Students will prepare for their future educational and career goals by meeting COLLEGE-LEVEL EXPECTATIONS and practicing skills for life-long success. Students will develop a sense of community and MAKE their senior year their best year of high school. Resources McConnell, Campbell, and Stanley Brue. Economics: Principles, Problems, and Policies. 16th ed. McGraw-Hill/Irwin, 2005. Additional Supplemental Resources Dodge, Eric R.AP Microeconomics 5 Steps to a 5, 2014-2015. Print. Course Requirements This course can be broken down into five general areas: Participation- approx. 15% Quizzes- approx. 10% Problem Sets- approx. 25% Unit Exams approx. 25% Final Exam- approx. 25% Internet and Technology My class will utilize technology and the internet. Students are expected to find access to the internet to complete assignments. There will be NO EXCUSES for not completing online assignments. In an age where students are competing GLOBALLY, we need to ensure students are using 21st century technologies in order for them to independently succeed in college and beyond. Problem Sets Problem Sets are essentially take home tests that require you to explain and apply the concepts discussed in your class and in your notes. Each problem set will contain at least two Free Response Questions (FRQs) similar to those given on the AP Exam. Problem sets are expected to be either typed, (double-spaced, 12 font size, with one-inch margins) or NEATLY hand-written. Illegible work will receive a zero subject to the discretion of the teacher. Unit Exams Unit exams include between 30 to 40 multiple choice questions. Approximately 25% of the questions are actual AP questions given on previous exams Most exams will also feature 2 to 3 FRQs that focus on the concepts learned. The FRQ section constitutes one third of your exam score. The Final You will have a final exam at the end of semester The semester final resembles the actual AP Exam and is divided into two sections: 60 multiple choice questions and 3 FRQs Activities and Simulations This year you will participate in several activities or simulations that will allow you to learn by doing. For example, you will analyze shortages and surpluses in an activity called The Pearl Exchange. In this activity you will be divided into buyers and sellers that negotiate prices and respond to changes in the pearl market. Other activities and simulations you may see this semester are: Marshmallow Towers, Widget Production, Name that Product, and The Prisoners Dilemma. The more you participate the more fun these activities will be. Classroom Constitution As an active participant in this classroom, I, _________________________________________, pledge to: Share my voice. Respect the voice of others. Learn from the voice of others. In addition to these basic three rules, I agree to exhibit the 7 character traits that are proven to provide sustainable, positive change in my future: Social Intelligence Grit Self-Discipline Zest Gratitude Optimism Curiosity I trust Mr. Wei to guide me to make history in his class. As long as I do everything he asks of me to the fullest of my abilities, I will be successful in achieving our BIG GOALS. Our Big Goals I will be a person of character everywhere. I will graduate from Sharpstown with an 80%+ in Mr. Weis class I will earn a 3+ on the AP exam Materials for Learning You will be required to bring the following items to each class: One and a half (1.5) inch 3 ring binder THREE SUBJECT Notebook- College Ruled loose leaf paper packet of 3 dividers Lecture/HW packets, Handouts, Notes Pens (ONLY blue or black will be accepted) Textbook A set of color pencils/markers *A supply check will be administered on Monday and Tuesday, January 13 and 14, 2014; this counts for a homework grade. Late Policy Late assignments will only be accepted for half-credit one day after their assigned due dates. Tests can only be made up within 1 week of the date of their first administration; tests will not be administered after the 1 week cut-off. Tests can only be made-up by appointment with Mr. Wei Absent Policy Absences need to be cleared through the attendance office and a separate note needs to be provided to Mr. Wei for his records. An email on or before the day of the absence is required to be excused for any work missed in class. Missed work for an excused absence will be given a grace period of one week to be turned in for full credit. Dear Parents/Guardians, My name is Mr. Albert Wei and I am looking forward to working with you and your child this semester. I am always excited to work with Seniors! In this AP Economics course, we will develop practical skills that can be applied in a variety of areas throughout college and in the workplace. Below, I have designed a Teacher, Parent, and Student Contract as a reminder that together we can ensure success for your child. Please read the course information and sign your name below. You child will return the signed contract to class by Friday, January 10th, 2014. Please know that I am always available to assist you and your child. Sincerely, Mr. Wei ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Teacher, Parent and Student Contract I have read the above information and accept responsibility for meeting these expectations in Mr. Weis Economics course. I agree that attendance every day is a necessary step for success in school and therefore pledge to be in attendance. I understand that Mr. Wei does not give grades, but rather, they are earned by your efforts. I understand that Mr. Wei will have weekly preview sheets and grades posted at the beginning of the week. I understand that I can contact Mr. Wei by visiting his classroom and by calling his cell at I PLEDGE TO BE SUCCESSFUL IN Mr. Weis ECONOMICS COURSE! Student Name (Please Print):__________________________________________________________ Student Signature:__________________________________________________________________ Parent/Guardian Signature:____________________________________________________________ Class Period:_____________________ Date:___________________________ Microeconomic Outline Unit I: Basic Economic Concepts - 2 Weeks (Chapters 1, 2, & 6, McConnell & Brue) Founding Principles Scarcity, the economizing problem Tradeoffs and Opportunity Cost Free-market system (Adam Smiths invisible hand) Types of Economics Microeconomics vs. macroeconomics Positive economics vs. normative economics Production Possibilities Graph Straight vs. bowed PPF Underutilization, full employment, and unattainable Law of increasing opportunity cost 3 shifters of the PPF Consumer goods vs. capital goods Circular Flow Model Product market, Factor market, and Public sector Specialization and Trade Absolute advantage Comparative advantage Unit II: Supply, Demand, And Consumer Choice 4 Weeks (Chapters 3, 4, 20, & 21. McConnell & Brue) Demand (graph) Law of demand Market demand curve Determinants of demand Normal vs. inferior goods Substitutes and complements Supply (graph) Law of supply Market supply curve Determinants of supply Equilibrium and Efficiency (graph) Equilibrium price and quantity Disequilibrium: surplus and shortages (graphing) Government Policies (graphs) Price floors and Price ceilings Excise taxes, Subsidies, Tariffs, Quotas Elasticity Price, Income, and Cross Price elasticity of demand The total revenue test (graph) Consumer Choice Law of diminishing marginal utility, Substitution effect, Income effect Marginal benefit/cost Utility maximizing rule Unit III. Costs of Production and Perfect Competition- 3 Weeks (Chapters 22 & 23. McConnell & Brue.) Economists vs. Accountants Total revenue Explicit and Implicit costs Economic costs and profits Costs of Production (graph) Fixed Costs, Variable costs, and Total costs Per-unit costs (AVC, AFC, ATC) Shifts in MC, ATC. AVC, and AFC Marginal costs and Marginal revenue Sunk costs Law of Diminishing Marginal Returns (graph) Stage I: increasing returns Stage II: decreasing returns Stage III: negative returns Long-run Production Costs (graph) Economies of scale, Constant Returns to scale, Diseconomies of scale Characteristics of Perfect Competition Price takers Demand = MR= Price Graph: Firm vs. industry (market) Short-run (profit or loss) Long-run equilibrium (New firm enter and exit) Normal profit Shutdown decision (P< AVC) Productive efficiency (P = Min ATC) Allocative efficiency (P = MC) Unit IV. Imperfect Competition-3 Weeks (Chapters 24 & 25. McConnell & Brue) Characteristics of Monopolies Barriers to entry MR below demand (graphs) Profit-maximizing price and quantity Natural monopoly Effects on overall economy Compared to competitive industry Dead-weight loss X-efficiency Price discrimination (graph) Purpose and results Graph (MR=D) Regulation Unregulated price, Fair return price, and Socially optimal price Taxes and subsidies Characteristics of Monopolistic Competition Long-run equilibrium (graph) Excess capacity Non-price competition Product differentiation Characteristics of Oligopolies Kinked demand curve-competitive pricing Game theory (chart) price leadership Collusion and cartels Unit V. Resource Market-3 Weeks (Chapters 27, 28, 29, & 35. McConnell & Brue) Demand for labor Derived demand Marginal revenue product Marginal resource cost Perfectly competitive labor market (graph) Wage makers Perfectly elastic supply of labor Monopsony (graph) Wages and quantity compared to perfectly competitive labor market Labor Unions Goals and methods Effects of Minimum Wage Wage differentials Investment in human capital vs. physical capital Unit VI. Market Failures and Government Involvement-3 Weeks (Chapters 30, 31, & 34. McConnell & Brue) Public goods Demand for public goods Supply of public goods Free-rider problem Non-excludability and Non-rivalry Positive externalities/spillover benefits (graph) Marginal social benefits vs. private benefits Underallocation Government remedy Negative externalities/spillover costs (graph) Marginal social cost vs. private cost Overallocation Government remedy Income distribution Lorenz curve (graph) Tax incidences Name: ________________________ Team: ________________________ Graded by: ________________________ Unit II: Supply, Demand, and Consumer Choice Problem Set #2 1. Explain an experience that demonstrates the real world application of each of the following. Define the terms in your own words and use examples that clearly demonstrate your understanding of each concept. The Law of Demand and the Law of Supply ( ____/5) Normal Goods and Inferior Goods ( ____/5) Consumers Surplus and Producers Surplus ( ____/5) The Law of Diminishing Marginal Utility ( ____/5) The Substitution Effect ( ____/5) 2. Worksheets Complete the study guide entitled Note sheet: Demand and Supply ( ____/5) Complete the worksheet entitled Practice Sheet: Demand and Supply ( ____/15)  3. Practice FRQs: Applying S&D Analysis IN-CLASS practice FRQ ( ____/10) Assume the following: The demand for all computers is price elastic. Laptop and desktop computers are substitutes. Laptops and DVD burners are compliments. Using three S&D graphs (laptops, desktops, and DVD burners) to show the impact of a change in technology that improves only the production of laptop computers on the following: ( ____/10) 4. Government Intervention: In 2004 the Governator vetoed legislation to increase Californias minimum wage from $6.75 to $7.25. Graph the effects of this wage floor and explain what would occur if it was passed. (____/5) The government often uses excise taxes, called sin taxes, to manipulate consumption of cigarettes. Draw and label the shift due to the tax and label the tax revenue. Lastly, explain why it is unlikely that this tax will significantly reduce cigarette consumption. (____/5) 5. Elasticity Give three reasons why the demand for some goods are elastic and others are inelastic. In your response, define elasticity and inelasticity and give examples of each. (____/5) Compare the purpose of calculating cross-price elasticity of demand and income elasticity of demand. Give examples of how each is applied. (____/5) Explain how the total revenue test can be used to determine if a demand curve is elastic or inelastic. Use two graphs with numerical examples in your response. ( ____/5) 6. Utility Maximization You just won a $130 shopping spree at a store that sells only DVDs and CDs. You are trying to determine what combination of these two goods would maximize your utility. The price of CDs is $10 and DVDs are $20. Below is the total utility you receive from consuming these goods. CDsTotal UtilityDVDsTotal Utility16012602110230031503420418045205200560062106660a. Calculate the marginal utility and marginal utility per dollar for each unit of each good. ( ____/4) b. Given the fact that you can spend a maximum of $130, how many CDs and DVDs should you buy? EXPLAIN how you determined the utility maximizing combination. 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