AP Microeconomics - Fall 2017

Transcription

1 AP Micrecnmics - Fall 2017 Suth Pasadena High Schl Ms. Trang Huynh ( Win ), Rm 126 Phne: (626) Ext thuynh@spusd.net Curse Overview Students will study a variety f ecnmic principles that apply t the functins f individual decisin makers, bth cnsumers and prducers. This curse places primary emphasis n the nature and functins f prduct markets and includes the study f factr markets and f the rle f gvernment in prmting greater efficiency in the ecnmy. This semester curse will prepare students fr the AP micrecnmics exam. The curse prvides instructin in basic ecnmic cncepts and prmtes understanding f ecnmic decisin-making factrs, such as marginal analysis and pprtunity csts. [SC1] the nature and functins f prduct markets: supply and demand mdel. [SC2] cnsumer chice. [SC3] prductin and csts. [SC4] market structures. [SC5] factr markets. [SC6] market failure and the rle f gvernment in crrecting market failure. [SC7] The curse teaches students hw t generate graphs and charts t describe ecnmic cncepts. [SC8] interpret and analyze graphs, charts, and data t describe ecnmic cncepts. [SC9] Students in this class will be expected t: be respnsible and accuntable. think critically, creatively, slve prblems, apply knwledge and set and reach gals. wrk cperatively, individually, develp disciplined wrk habits and d their best. Required Text Arnld, Rger A. Ecnmics. 5th ed. Masn, OH: Suth-Western Cengage Learning, AP Micrecnmics Exam Friday, May 18, 8 am. 1. Multiple chice questins (70 mins/66%) - 60 questins minutes per questin 2. Free respnse questins (60 mins/33%) - 3 questins 1 lng respnse questin (16% f scre) 2 shrt respnse questins (8% each) Imprtant Rules: n calculatrs r clred pencils/pens.

2 Student Evaluatin A: % B: 89-80% C: 79-70% D: 69-60% F: 59 and belw Final grades are nt runded up. Classwrk, Hmewrk, Prjects and Participatin 30% Unit Exams 50% Final Exam 20% Late wrk is nt accepted. Grades will be psted n Aeries and updated weekly. Absences and Make-up Wrk: It is the student s respnsibility t get missed wrk fr the days he/she was absent frm the hmewrk website. Upn returning, hmewrk frm the last class meeting is due. If the student is absent n the day f a quiz r test, the student will be required t take the quiz/test n the day the student returns t class. That quiz/test may r may nt be the same quiz/test given n the riginal exam day. Cheating Plicy: Cheating, cpying, allwing smene t cpy yur wrk, r plagiarism f any kind will nt be tlerated. All students invlved will receive a zer and parents will be ntified. Tutring: If extra help is needed, I am available during 2 nd perid, brunch, and afterschl by appintment. It is best t reach me by at thuynh@spusd.net. If yu prefer t call me, I can be reached at extensin Please make all calls after 3pm. Curse Outline Unit Objectives Textbk Chapter Unit I: Basic Ecnmic Cncepts and Supply and Demand Mdel Tpic #1: Basic Ecnmic Cncepts 1. Scarcity, chice, and pprtunity cst 2. Prductin pssibilities curve 3. Marginal analysis 4. Cmparative advantage, abslute advantage, specializatin, and trade 5. Ecnmic systems 6. Prperty rights and the rle f incentives Define scarcity, chice, and cst. Define and cmpute pprtunity cst. Distinguish between psitive and nrmative statements. Cnstruct and interpret prductin pssibilities schedules and graphs. Define hw prductin pssibilities schedules and graphs illustrate the issues f scarcity, chice, and cst. Define and calculate abslute and cmparative advantage fr prductin and exchange. Define allcatin, efficiency, and equity. Explain ways in which scieties determine allcatin, efficiency, and equity. List and explain the ecnmic questins facing all natins. Ch. 1: What Ecnmics Is Abut Ch. 2: Trade, Tradeffs, and Ecnmic Systems

3 Tpic #2: Supply and Demand 1. Determinants f supply and demand 2. Market equilibrium 3. Price and quantity cntrls 4. Elasticity a. Price, incme, and crss-price elasticities f demand b. Price elasticity f supply 5. Cnsumer surplus, prducer surplus, and allcative efficiency 6. Tax incidence and deadweight lss Define and illustrate supply and demand thrugh schedules and graphs. Distinguish between changes in supply and demand and between changes in quantity demanded and supplied. Explain the inverse and psitive relatinships between price and quantity demanded and quantity supplied. Identify and explain the variables that cause changes in supply and demand. Define and illustrate equilibrium. Define and illustrate surpluses and shrtages. Define effects f surpluses and shrtages n prices and quantities. Predict the changes in prices and quantities, given changes in demand and/r supply. Interpret and cmpute equilibrium price and quantity frm graphs, and/r data. Interpret market cnditins given nvel data. Define and explain the effects f price ceilings and price supprts. Define, explain, calculate, and interpret the price elasticity f demand. Identify and interpret the relatinship between the price elasticity f demand and the effect f a price change n ttal revenue. List and explain the determinants f price elasticity f demand. Define, calculate, and interpret crss elasticities and incme elasticities f demand. Calculate and explain the price elasticity f supply. Explain the burden f taxatin given elasticity infrmatin Ch. 3: Supply, Demand, and Price: The Thery Ch.4: Applicatins f Supply and Demand Ch. 18: Elasticity Unit II Thery f Cnsumer Chice and Prductin and Csts Tpic #1 - Thery f Cnsumer Chice 1. Ttal utility and marginal utility 2. Utility maximizatin: equalizing marginal utility per dllar 3. Individual and market demand curves 4. Incme and substitutin effects Explain the thery f marginal utility and its relatinship t demand. Cnstruct and interpret marginal utility schedules and curves. Explain hw a ratinal individual decides what t purchase, given necessary infrmatin abut utility, prices, and incme. Derive cnsumer demand schedules and curves, given necessary infrmatin abut utility, prices, and incme. Tpic #2 - Prductin and Csts 1. Prductin functins: shrt and lng run 2. Marginal prduct and diminishing returns 3. Shrt-run csts 4. Lng-run csts and ecnmies f scale 5. Cst minimizing input cmbinatin and prductive efficiency Ch. 19: The Lgic f Cnsumer Chice Ch. 20: The Firm Ch. 21: Prductin & Csts

4 Define, explain, and calculate ttal prduct, marginal prduct, and average prduct, and describe the relatinship amng these cncepts. Define and interpret prductin functins. Define and differentiate between shrt run and lng run and between fixed and variable inputs. Define the law f diminishing returns and explain hw it is depicted by the ttal prduct and marginal prduct curves. Explain the relatinship between prductin and cst. Define and differentiate between explicit and implicit csts. Define and calculate cst graphs. Calculate and define fixed, variable, average, marginal, and ttal csts, and explain hw they vary with the level f utput in the shrt run and lng run. Define and explain ecnmies and disecnmies f scale and cnstant returns t scale. Define and calculate the least-cst cmbinatin f inputs t emply fr an existing firm. Unit III: Firm Behavir and Market Structure Unit IIIA: Pure Cmpetitin vs. Mnply 1. Prfit a. Accunting versus ecnmic prfits b. Nrmal prfit c. Prfit maximizatin: MR=MC rule 2. Perfect cmpetitin a. Prfit maximizatin b. Shrt-run supply and shutdwn decisin c. Behavir f firms and markets in the shrt run and in the lng run d. Efficiency and perfect cmpetitin 3. Mnply a. Surces f market pwer b. Prfit maximizatin c. Inefficiency f mnply d. Price discriminatin e. Natural mnply 4. Public plicy t prmte cmpetitin a. Antitrust plicy b. Regulatin Unit IIIB: Mnplistic Cmpetitin vs. Oligply 5. Oligply a. Interdependence, cllusin, and cartels b. Game thery and strategic behavir c. Dminant strategy d. Nash equilibrium 6. Mnplistic cmpetitin a. Prduct differentiatin and rle f advertising b. Prfit maximizatin c. Shrt-run and lng-run equilibrium d. Excess capacity and inefficiency Ch. 22: Perfect Cmpetitin Ch. 23: Mnply Ch. 24: Mnplistic Cmpetitin and Oligply Ch. 25: Gvernment and Prduct Markets Define maximizatin f prfits. Apply the cncepts f marginal cst and marginal revenue t determine maximizatin f prfits. Understand and apply the rule MR = MC. Understand the cncept f minimizatin f lsses. Define the shutdwn criterin. Fr each market structure:

5 a. Define and explain the cnditins under which it functins. b. Cnstruct marginal revenue/cst analyses t determine price and utput. c. Determine the shrt-run and lng-run equilibrium. d. Identify the shrt-run market supply curve. e. Cmpare and cntrast pricing and utput between and amng the firms. f. Cmpare and cntrast the demand curve and marginal revenue curve. g. Cmpare and cntrast allcative and technical (prductive) efficiency amng the firms. h. Cmpare and cntrast prduct differentiatin amng the firms. i. Cmpare and cntrast the degree f price discriminatin amng the firms. j. Cmpare and cntrast the effects f gvernment regulatin t make it mre efficient. Unit IV: Factr Markets 1. Derived factr demand 2. Marginal revenue prduct 3. Hiring decisins in the markets fr labr and capital 4. Incme distributin Explain the cncept f derived demand. Calculate and explain the quantity f labr r a resurce t be hired/bught by a firm. Cnstruct a shrt-run demand schedule fr a resurce. Calculate and explain the relative amunts r prprtins a prducer shuld acquire f tw r mre resurces. Explain the relatinship between MP and the demand fr an input. Explain and apply the cncept f least-cst cmbinatin f inputs t nvel data. Explain and apply the rule fr finding least-cst cmbinatin. Explain hw the marginal prductivity thery f resurce demand applies t wage rate determinatin. Explain hw the wage rate is determined. Calculate and determine wage rates in a cmpetitive labr market and in a mnplistic labr market. Explain the cncept f bilateral (single seller, single buyer) mnply. Explain the purpse f labr unins and their rganizatin. Explain the effects f unins and specific unin tactics n wages and emplyment in bth cmpetitive and mnplistic markets. Evaluate the efficiency f specific legislatin aimed at increasing wage rates and emplyment. Ch. 27: Factr Markets Ch. 28: Wages, Unins, and Labr Ch. 29: The Distributin f Incme and Wealth Ch. 30: Interest, Rent, and Prfit Unit VI: Market Failure and the Rle f Gvernment 1. Externalities a. Marginal scial benefit and marginal scial cst b. Psitive externalities c. Negative externalities d. Remedies 2. Public gds a. Public versus private gds b. Prvisin f public gds Ch. 31: Market Failure Identify ptential areas f market failures (externalities and spillvers) Define and explain public gds. Identify ecnmic functins f gvernment in a market ecnmy.

6 READ ENTIRE QUESTION D nt restate the questin. Free Respnse Questins (R.O.L.L) The exam readers knw the questin, and yu shuld nt waste time restating it. Get straight t the pint. If the questin requires yu t draw a graph, yu must d s t receive full credit. Even if a graph is nt required, it may be t yur advantage t draw ne anyway. Often students use the wrng ecnmic terminlgy, but clearly indicate they understand what is happening by using a crrect graph. On the ther hand, graphs are nt magical tls that ensure high scres; they are useful tls in making arguments, but they dn't stand alne. It is imprtant that the stry the graphs tell is explained. ORGANIZE ANSWER Use the 10-minute reading perid t plan yur answer. Yu will have 50 minutes t answer all three questins in the free-respnse segment. Spend apprximately half the time (25 minutes) n the lng questin and divide the remaining time between the ther tw questins. Emphasize the line f reasning that generated yur answer. If yu make an assertin such as "the price increased," explain why the price increased. Use crrect terminlgy. Fr example, the market demand curve fr a prduct shuld nt be called the aggregate demand curve, a macrecnmic cncept that relates desired aggregate expenditures at different price levels. Learn and use the crrect language f micrecnmics. When asked t explain r analyze effects that a given ecnmic plicy/event may have n ther ecnmic variables, be sure t explain the line f reasning. Yu shuld describe all f the linkages invlved in generating yur results, rather than just stating the final cnclusin. Remember that yu may answer the questins in any rder. Fr instance, yu may wish t answer the questin yu feel mst cnfident abut first. Hwever, be sure t indicate clearly in yur answer bklet which questin yu are answering. LABEL EVERYTHING Label graphs clearly, crrectly, and fully. Pints are lst when readers can't figure ut what yu're trying t explain with a graph that isn't labeled crrectly. S, take particular care t label each axis and t identify each curve n the graph. Changes in curves shuld be indicated clearly with arrws r with sme clear sequencing, such as shwing a change in supply with S and S' r S1 and S2. LIST ANSWERS Use the same utline numbers r letters frm the questin in yur answer, and answer them in the same rder. Many free-respnse questins are divided int parts such as (a), (b), (c), and (d), with each part calling fr a different respnse. Credit fr each f these parts is awarded independently, s yu shuld attempt t answer them all. If the answer t a later part f a questin depends n the answer t an earlier part, yu may still be able t receive full credit fr the later part, even if the earlier answer is wrng. Fr example, yu may receive n credit fr yur answer t part (a), but still receive full credit fr parts (b), (c), and (d), as lng as these answers are lgically cnsistent with the answer t part (a).