ࡱ> y{x[ 6bjbj  .tpa!\pa!\.( ( @lC,pBBBBBBB$4EGBBBBBn> A0CD:? sBB0C;?HH@ AH Ah"1EBBdCH( > f: AP Microeconomics Mr. Gill Welcome Letter Spring 2017 Advanced Placement Microeconomics Hello Students, Welcome to Advanced Placement Microeconomics! This semester long course is designed to help you develop critical thinking skills necessary to compete in the 21st century through the understanding, application, and analysis of fundamental microeconomic concepts. Concepts such as scarcity, cost-benefit analysis, factor markets, and market failures will be examined. Students will be expected to apply quantitative and mathematical skills to economics, as well as apply economic logic to a wide variety of real world and hypothetical situations. To help master the material we will discuss current issues as they apply to the concepts we are discussing in class, interpret graphs, work through free response questions from earlier exams and have a variety of assessments designed to challenge your child and encourage taking academic risks. The course is very similar to microeconomics courses offered at the college level. This course prepares students for the AP Microeconomics Examination on Friday, May 12th at 8:00 am. The exam costs $93 and could help you earn 3 college credits! (Financial aid is available. Please see Mr. DiBari.) There will be after school review sessions during the spring semester to help you prepare for the exam. The exam consists of 60 multiple choice questions and 3 free response questions. The outline of the course content can be found on the back side of this paper. Be proud of your childs decision to challenge themself academically and once again welcome to AP Microeconomics! Student Expectations You are here to learn. Appropriate behavior is required. (Read the Text Book) You must be punctual. (Read the Text Book) You should participate in class discussions and contribute to the class goal of learning economics. You should be willing to spent the extra time to meet AP course expectations. (Read the Text Book) You will respect the educational opportunity afforded to yourself and your classmates. (Read the Text Book) Keep up to date on current microeconomic activities. (Read the Text Book) If you miss more than 5 classes and you do not make up the time and work you may not get course credit. (Read the Text Book) Grading Contacting Me Tests/Papers/Projects: 50% Prep Times: 2A, 4A, 3B Quizzes: 30% Phone: 256-4175 ext. 69522 Homework/Classwork: 20% Email:  HYPERLINK "mailto:jgill@newpaltz.k12.ny.us" jgill@newpaltz.k12.ny.us First Semester Assignment Since the second semester does not start until February 2017 we will be studying the first unit online during the remainder of the first semester. This will enable us to complete the entire course at an advantageous pace before taking the AP exam. Last year students who completed the online component of the course before the second semester began earned better results on the AP exam than those who did not complete the online component. Please encourage your child to complete the online component on time. We will be using the Yammer program on Office 365 through the schools server. You will be able to upload completed assignments, discuss course content with me and fellow classmates and receive information on the three quizzes you will need to take before the class meetings start in February. The assignments you complete on Yammer will be included in your course grade. The first unit test will be on the second day of class in February. Suggested Timeline Modules #1- 3 by December 22, 2016 Module #4 by January 6, 2017 Modules- 5- 7 by January 20, 2017 Modules #8-9 by February 1, 2017 When creating a Yammer account you will need to provide the following Follow the link to Office 365 on the school website Click onto Yammer Click on 2017 AP Microeconomics and ask to be invited I will accept your request Start Completing the assignments on Yammer The first unit in AP Microeconomics is very similar to the first unit in AP Macroeconomics. Notes and activities can be found on the calendar page of my website and under the Economic Basics tab on my AP Economics section of my school website. If you ever have any questions please feel free to contact me either online or during the school day. My Prep periods are 4th Block on both A and B Days and I am on Cafeteria duty on A- Days. You are also more than welcome to meet with me every day either before or after school in Room 261. I look forward to working with you during the next two months online as well as during the second semester of the school year. Sincerely, Mr. Gill Textbook Ray, Margaret and Anderson, David.. Krugmans Economics for AP*, Worth Publishing, 2011 Some Additional Resources Levitt, Steven. Freakonomics The Economist Wall Street Journal The New York Times: Business Day Section Economics in Action CD-Rom  HYPERLINK "http://economicschallenge.ncee.net" http://economicschallenge.ncee.net National Council on Economics Education  HYPERLINK "http://www.econtoday.com" www.econtoday.com  HYPERLINK "http://www.myeconlab.com" http://www.myeconlab.com  HYPERLINK "http://www.econweb.com" www.econweb.com  HYPERLINK "http://www.rfe.org" www.rfe.org UNIT 1: Basic Economic Concepts (2 Weeks) CONTENT/ESSENTIAL QUESTIONS How does scarcity affect decision making? (2) How does comparative advantage illustrate opportunity costs? (2) What is the difference between change in supply/demand and change in quantities supplied/demanded? (3) How do determinants of supply and demand impact price and quantity? (3) What relationship does the circular flow of money model illustrate? KEY TERMS absolute advantage black market ceteris paribus circular flow of money model command economy comparative advantage economics equilibrium point factors of production free market economy inferior goods Law of Increasing Costs limited market economy macroeconomics microeconomics models mixed market normal goods normative economics opportunity cost positive economics production possibility curve resources scarcity shortage/surplus specialization supply/demand terms of exchange transaction costs Traditional market economy voluntary exchange wants/needs SKILLS/GRAPHS/CHARTS (to create and interpret) Production Possibility Curve Evaluate the economic merits of Smith, Malthus, Ricardo, Marx, Keyenes, Spencer Supply and Demand Graphs- Labeling Activity Change in demand/supply v change in quantity demanded/supplied Comparative Advantage Charts Analyze the Circular Flow of Money Model Distinguish between positive and normative economics ADDITIONAL RESOURCES Video ABC News Greed by John Stoessel Wealth of Nations by Adam Smith Communist Manifesto by Karl Marx Stages of Growth: A Non- Communist Manifesto by Walt Rostow UNIT 2: Nature and Function of Product Markets (12 Weeks) ESSENTIAL QUESTIONS What are the determinants (non-price) of supply and demand? (3) What factors affect elasticity of demand? (20) How do households decide how much of a product to demand, labor to supply, how much to spend and how much to save? (19) How do consumers use marginal analysis during the decision making process?(19) What is the difference between marginal and total utility? (19) Why do diamonds cost more than water even though one cannot live without water?(19) How may government policies impact price and output? (4) How does the payoff matrix illustrate the game theory? (25) How does the prisoners dilemma illustrate game theory?(25) What is the difference between the short and long runs? (22) What is the difference between accounting and economic profits? (22) What are the characteristics of perfect competition, oligopolies, monopolies and monopolistic competition? (23,24,25) KEY TERMS adjustment mechanisms allocative efficiency artificial shortage (4) artificial surplus(4) break even point calculating price cartels (24) collusion (25) consumer choice (19) consumer surplus cost minimization costs (total, marginal, fixed, variable) cross price dead weight loss determinants of demand determinants of supply diamond-water paradox diminishing returns diseconomies of scale economies of scale efficiency elasticity excess capacity excise taxes explicit and implicit costs free market price game theory income elasticities of demand inefficiency interdependence law of diminishing marginal utility long-run marginal productivity marginal utility market structure monopolistic competition monopoly oligopoly perfect competition price ceilings price discrimination price elasticity of supply price floors price wars producer surplus product differentiation profit (economic v normal) profit maximization revenue (total and marginal) quotas Short run profits and losses Shut Down tariffs util utility SKILLS/GRAPHS/CHARTS (to create and interpret) Shifts in supply and demand Production (Total and Marginal) cost curves Create and interpret cost and revenue charts Competetive Firms and Competetive Industry Consumer and Producer Surplus Economies (and diseconomies) of Scale- Diminishing Marginal Utility Long Run Average Cost Curves Marginal Cost Curves Elasticity Curves (Perfectly elastic and perfectly ineleastic) Monopoly Firms with excess profits and minimizations of losses Monopoly Inefficiency (allocative and technical) Price floor and Price ceiling graphs Marginal and Total Utility Chart Monopsony Model Kinked Demand Curve Perfect and Imperfect Competion Monopolistic Competition (Long-Run Equilibrium) ADDITIONAL RESOURCES The Popcorn Stand Story- A story of economies of scale Atlas Shrugged by Ayn Rand UNIT 3: Factor Markets (3 Weeks) ESSENTIAL QUESTIONS In what sense is demand for labor derived demand? (27) What is the relationship between a firms marginal revenue product curve and its demand for labor? (27) What are the key factors that influence elasticity of demand for inputs? (27) How are equilibrium wage rates determined? What impact do labor unions have on wages and productivity? (28) What impact do monopsonists have on wages? (28) What role does economic rent play in the decision making process? (29) KEY TERMS Derived Factor Demand Economic Rent Income inequality Labor Market Labor Supply and Wages Marginal Revenue Market Market Distirbution of Income Minimum Wage Monopsony Price of Capital (Physical and human) Product Market Monopolies Unions Wages SKILLS/GRAPHS/ CHARTS (to create and interpret) Credit Market Derived Demand Economic Rent Labor Market Marginal Factor Cost Curve (monopsonists) Margnal Physical Product Wage Rates ADDITIONAL RESOURCES Is Wal-Mart Good for America?-PBS Frontline Series UNIT 4: Market Failure and the Role of Government (3 Weeks) ESSENTIAL QUESTIONS What are market failures? (5) What powers does government have to correct market failures? (5, 31) Distinguish between public and private goods. (5) How does the Lorenz curve represent a nations economic distribution? (30) How should a nation address poverty, health- care, education? (30) How should the government monitor social costs and social benefits? At what point should the government attempt to correct a market failure? Distinguish between social and private costs. How can the market, as well as government, correct positive and negative externalities? Can there be environmentally friendly economic growth? What are the costs of recycling scarce resources? 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