Leon M Goldstein High School For The Sciences



Advanced Placement Economics Leon M. Goldstein High School

Mr. S. Ryan Syllabus for 2015-2016

***This is the syllabus for the Advanced Placement Economics course at Leon M. Goldstein High School. Each student may have the chance, if they pass the test, to gain college credit. The workload is heavy and challenging and will take much dedication and study. Below is a summary of the main concepts that will be explored throughout the course. Your textbook is entitled Kugman’s Economics for AP by Margaret Ray and Dave Anderson.

Advanced Placement Microeconomics (Semester 1)

Advanced Placement Macroeconomics

(Semester 2)

Leon M. Goldstein High School

Teacher: Stephen Ryan 2010-20011

The following is the student syllabus for AP Micro and Macroeconomics. Each topic will be researched, thoroughly discussed and referred back to throughout the course.

Textbook: Principles of Economics 3rd Edition. N. Gregory Mankiw I:

I: Basic Economic Concepts

(Applicable to both Micro and Macro)

economics

scarcity

complements   

substitutes

choice                                                  determinants of demand

technology                                            determinants of supply

resources                                              equilibrium

shortage

surplus

positive economics 

price floor

normative economics

price ceiling

economic good                         transaction costs

free good                                              private and public sectors

models                                                 socialism

ceteris paribus                                      capitalism

opportunity cost                                    centrally-planned economy

production possibility curve 

traditional economies

specialization

four basic economic questions

comparative advantage             consumer sovereignty

terms of trade                                       mercantilism

consumption possibility curve    laissez-faire

market                                                 

change in supply

fair trade

change in quantity supplied                  globalization resource allocation

Adam Smith

Supply Demand                                                public goods

change in demand                                 externalities

change in quantity demanded

free trade

rational self-interest

WTO/GATT, NAFTA

Graphing Supply/Demand Curve Graphs

Microeconomics

II. Costs and Revenues

Law of Diminishing Marginal Returns

Economies of Scale

Budget Constraints

Consumer Choice

Consumers’ Optimal Choice

Costs (fixed, variable, marginal)

Cost Curves (relationship between curves)

Total and Marginal Revenues

Profit and Loss (MR/MC and TR/TC)

Break-Even

Shut Down

Economic Profit versus Normal Profit

III. Perfect Competition

Assumptions

Relationship between Industry and Firm

Profit Maximizations

Long-Run Equilibriums

Short-Run Equilibriums

Adjustment Mechanisms

Allocative Efficiency

IV. Imperfect Competition

Relationship between Price and Marginal Revenue

Barriers to Entry

Profit Maximization

Monopoly/Natural Monopoly/Regulation of Monopolies

Oligopoly and Duopoly Game Theory with Game Tree and Payoff Matrix

Monopolistic Competition (LR and SR)

Nash Equilibrium

Collusive Oligopoly

V. Factor Markets

Factors of Production

Derived Demand

Marginal Revenue Product Analysis

Optimal Purchases Rule

Perfectly Competitive Factor Markets

Profit Maximization/Cost Minimization Rules

Economic Rent

Distribution of Income Among Factors

Unions

VI. Role of Government

Public versus Private Goods

Marginal Social Cost/Marginal Social Benefit Analysis,

Market Failures, Positive and Negative Externalities,

Taxes, Free Rides

Macroeconomics

I. Measuring Economic Performance

Circular flow model

real and nominal GDP

chain-type real GDP

foreign exchange market

exchange rates

balance of payments

current account

trade deficit

aggregate demand

trade surplus

aggregate supply

business cycles

production function

classical model

depression

Say’s law

recession

market-clearing

labor force

money illusion

underemployment

labor supply and demand

underground economy

aggregate expenditures

types of unemployment

II: National Income and Price

Determination

John Maynard Keynes

GDP gap

international arbitrage

natural rate of unemployment

classical dichotomy

complete crowding out

equation of exchange

CPI

quantity theory

menu costs

GDP price shoe leather costs                  

GNP, NNP, NI, PI                   

disposable income (Yd)

Purchasing power parity 

III: Inflation, Unemployment, and Stabilization Policies

deflation

inflation  

nominal interest rate unemployment rate

real interest rate

potential (full employment) GDP                                              

expected inflation

demand-pull inflation

cost-push inflation

hyperinflation                                                 

IV: Financial Sector

Keynesian Model: fiscal policy:

Consumption Function

Saving Function

Import Function

I, G, X, M

MPC, MPS, MPI

Disposable Income

Aggregate Expenditures

AE=C+I+G+(X-M)

Y=AE in equilibrium

Spending Multiplier =1/(1 – MPC + MPI)

Tax Multiplier=(MPC+MPI)/(1-MPC+MPI)

Tax Multiplier= 1- Spending Multiplier

Leakages = S+T+M

Injections = I+G+X

Paradox of Thrift

V: Economic Growth and Productivity

Keynesian cross diagram

AS/AD Analysis

Aggregate Demand and Supply

Determinants of AD and AS

Equilibrium

Cost-Push Inflation

Demand-Pull Inflation

Capacity Utilization

Real Income (Wealth) Effect

Interest Rate Effect

Net Export Effect

Neo-classical AS

Neo-Keynesian AS

Classical Model

Fixed-Price Keynesian Model

Ordinary upward sloping AS

Supply Side Economics

Fiscal Policy

Discretionary Fiscal Policy

Automatic stabilizers

GDP Gap

Budget Deficit

National Debt

Progressive Tax System

Proportional Tax System

Regressive Tax System

Twin Deficits

Laffer Curve

VI: Open Economy, International Trade and Finance

Loanable Funds Market

Crowding Out Effect

Monetary Policy

Functions of Money

M1, M2, and M3

Commodity Money

Fiat Money

Gresham’s Law

Equation of Exchange

MV=PY

Quantity theory of Money

Monetarist Model

Money Supply and Demand

Investment Function

Federal Reserve System

Function of the FED

FOMC

Tools of Monetary Policy

Open Market Operations

Discount Rate

Reserve Requirement

Informal Powers

Repurchase agreements

Phillip’s Curve

The following is a tentative course calendar based on chapters and assessments that will be covered during the course of the year.

September: Basic Concepts in Economics Section 1,2 and 9

(Micro) October: Section 10,11

November: Section 12,13

December: Section 14

January: (January will consist of Micro exam Review)

(Macro) February: Section 3 and 4

March: 5 and 6

April: 7 and 8

May: ****The month of May will be a plethora of review for both exams****

Grading Policy-All grading is cumulative with each marking semester. (September to January, and February to June)

Tests = 60% (2-3 tests a marking period)

Quizzes = 25% (at least 1 on every chapter)

HW: 15% (10-12 HW’s given a marking period)

F=0-64% D =65-69% C =70-79% B=80-89% A=90=100%

***All homework is due on its due date and cannot be made up without an acceptable doctor’s note. THERE ARE NO MAKE UP TESTS! If you are absent on an exam date, you must have a legitemate doctor’s note so as to not receive a zero for the exam. Then you will have to make up a different exam which in all likeihood will be more difficult. If absences/study habits/latenesses are a recurring problem a meeting will be made with your parent/guardian as to whether or not you should remain in the course. If you are caught cheating in my AP class, you shall receive no credit for that test/quiz/HW and you will probably receive a failing for that marking period. My job as teacher of the AP Economics course is NOT to “teach” you material, but merely to clarify concepts on the material that you have already read/worked on/studied. If you do not read the material for each chapter you will be lost. Do not depend on classroom lectures or cramming the evening before an exam or quiz. You will not “get it” from just paying attention in class. If you do not study, it will be obvious to me and you will struggle both on my exams, and especially the AP exams.

Please have your parent/guardian and yourself sign below, indicating that you have read the course description syllabus and agree to the terms mentioned above before continuing with the course.

_________________________________ ________________________________

Student Signature Parent/Guardian Signature

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