AP Microeconomics Course Outline

The following course outline provides for you the major concepts to be covered in this course. Please note that homework for each Chapter is due on the date you take the Chapter Quiz. You must turn in at least three assignments on the day of each quiz. You may choose to do the textbook’s Key Questions and any combination of workbook activities. The Saving Adam Smith chapters noted below will be assessed with the appropriate chapter as indicated in the course outline.

 

Microeconomics Course Outline

Textbook Chapter

Workbook

Activities

Saving Adam Smith

Unit 1: Introduction to Economics

I.                    Basic Economic Concepts

A.     Scarcity

B.     Opportunity Cost

C.     Factors of Production

D.     Production Possibilities

E.     Comparative Advantage

F.      Private Property

II.                  The Market System

A.     Consumer Sovereignty

B.     Profit and Resource Allocation

C.     Household (Consumer) Sector

D.     Business Sector

E.      International Sector

F.      Government (Public) Sector

G.     Circular Flow Model

H.     Profits, Normal and Economic

III.                  Price Determination

A.     Demand

B.     Supply

C.     Price Determination

D.     Government Price Setting

 

 

1 & 2

 

 

 

 

 

 

4 & 5

 

 

 

 

 

 

 

 

  3

 

 

1 – 3, 6-8

 

 

 

 

 

 

4-5

 

 

 

 

 

 

 

 

 9-10, 12-16

22-23

   

 

1-5

 

 

 

 

 

 

6-11

 

 

 

 

 

 

 

 

12-15

 

 

  

Unit 2: Product Markets

 I.                  Demand and Supply Elasticity

A.     Demand Elasticity

B.     Supply Elasticity

C.     Cross and Income Elasticity

II.                 Consumer Behavior

A.     Income/Substitution Effects

B.     Diminishing Marginal Utility

C.     Utility Maximization

III.               Producer Behavior

A.     Economic Costs/Profits

B.     Short Run Production Function

C.     Short Run Production Costs

D.     Long Run Production Costs

 

20

 

 

 

21

 

 

 

22

 

17-21

 

 

 

 11

 

 

 

25-26, 30

 

16-18

 

 

 

19-22

 

 

 

23-26

 


 

Microeconomics Course Outline

Textbook Chapter

Workbook

Activities

Saving Adam Smith

Unit 3:  Market Structures

I.                                        Profit Maximization

A.          Profit Calculation

B.           Market Structures

C.           Profit Maximization

D.          Economic Profit

II.                   Perfect Competition

A.     Characteristics

B.     Demand for Individual Seller

C.     Profit Maximization

D.     Long Run Equilibrium

E.      Productive/Allocative Efficiency

F.      Consumer/Producer Surplus

III.                 Pure Monopoly

A.     Characteristics and Types

B.     Monopoly Demand

C.     Output and Price Determination

D.     Price Discrimination

E.     Economic Inefficiencies

F.      Regulated Monopoly

IV.               Monopolistic Competition and Oligopoly

A.     Characteristics of M.C.

B.     Output and Price Determination

C.     Efficiency with M.C.

D.     Characteristics of Oligopoly

E.     Game Theory Model

F.     Oligopolistic Behavior

G.    Efficiency with Oligopoly

 

 

 23

 

 

 

 

24

 

 

 

 

 

 

25

 

 

 

 

 

 

26

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 27-29, 31

 

 

 

 

 

 

32-37

 

 

 

 

 

 

40-42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit 4:  Resource (Factor) Markets

I.                    Resource Demand

A.     Marginal Revenue Product

B.     Marginal Factor Cost

C.     Resource Allocation: Perfect Competition

D.     Resource Allocation: Monopsony

II.                 Labor Market

A.     Productivity and Real Wages

B.     Wage Differentials

C.     Minimum Wage Effects

D.     Immigration

E.      Discrimination

F.     Labor Unions

G.     Bilateral Monopoly

III.               Capital Markets

            A.     Demand for Capital

            B.     Supply of Capital

            C.     Equity Market

            D.     Bond Market

IV.                 Land Market

A.     Economic Rent

B.     Renewable and Non-renewable Resources

 

 

29

 

 

 

 

 

30 

 

 

 

 

 

 

 

31

 

 

 

 

32

 

43-46

 

 

 

 

 

47-49 

 

 

 

 

 

 

 

 

 

 

 

 

50-51

 

 

 

 

 


 

Unit 5: Government Regulation of Markets

I.                    The Government and Market Failure

A.     Externalities and Coase Theorem

B.     Property Rights and the Tragedy of the Commons

C.     Public Goods

D.     Information Failure

E.     Government Failure

      II.               Antitrust Legislation

A.     Antitrust Laws

B.     Issues and Impacts

C.     Industrial Regulation

D.    Deregulation

E.    Social Regulation

III.                 Income Distribution and Government Policy

A.    Lorenz Curve

B.    Poverty

C.    Income Redistribution

D.    Transfer Payments

E.    The Tax Burden

F.   Tax Incidence and Efficiency

IV.              The Economics of Health Care

A.     Social Security

B.     The Health Care Industry

C.     Health Care Costs

D.    Health Care Reform

 

 

28

 

 

 

 

 

 

 

 27

 

 

 

 

 

34

 

 

 

 

36

 

 

33

 

52-57

 

 

 

 

 

 

 

 

 

 

 

 

 

58-60