Mr



Mr. Jim Griffin

AP Economics

Social Studies Department

Montgomery High School

jgriffin@mtsd.us

2015-2016 AP Economics Course Syllabus and Class Policies

Course Description: The goal of the AP Economics course is to give students a thorough understanding of the principles that apply to microeconomic and macroeconomic systems. The course is designed to prepare students to take the AP Microeconomics and Macroeconomics Exams in May. The rigorous workload and pace of the course will help prepare students for college level study. The AP Economics course at Montgomery High School has been designed according to the course description set forth by The College Board, who administers the AP Exams. Further, the AP Economics course at Montgomery has been authorized by The College Board to carry the AP designation via the AP Audit process. This course addresses NJ Core Curriculum Social Studies Content Standards relating to Economics, as well as the Voluntary National Content Standards in Economics developed by The National Council on Economic Education and the Foundation for the Teaching of Economics.

An “economic way of thinking” is beneficial for an individual in private life and directly applicable to a variety of career fields. The National Council on Economic Education has outlined nine principles of “economic thinking.” This course is intended to foster this type of thinking for lifelong use. The NCEE Nine Principles of Economic Thinking are:

|Everything has a cost |People choose for good reasons |

|Incentives matter |Economic actions carry secondary effects |

|People gain from voluntary trade |Economic thinking is marginal thinking |

|The price of a good or service is affected by people’s choices |People create economic systems to influence choices and incentives |

|The test of a theory is its ability to predict | |

Course Content and Curriculum: The core of this course will be taught in 4 Microeconomics units and 7 Macroeconomics units. Each unit corresponds directly with the 11 topics outlined in The College Board’s AP Microeconomics and Macroeconomics course descriptions. The Microeconomics portion of the course contains the traditional introductory economics curriculum that focuses on basic economic concepts, market behavior, the role of the firm, and market failure and the role of government. The Macroeconomics portion of the course focuses on the economic system as a whole. Emphasis will be placed on the study of economic performance measures, national income, the financial sector, and international economics. Two additional units - Economics for Citizenship and Economics for Life - will be embedded into the curriculum and will be the subject of special projects following the administration of the AP Exams.

Course Units: The percentages indicated next to each unit title reflect the approximate percentage that each topic constitutes on the multiple-choice section of each AP Exam.

MICROECONOMICS - 4 Units

I. Basic Economic Concepts (8-14%)

A. Scarcity, choice and opportunity cost

B. Production possibilities curve

C. Comparative advantage, absolute

advantage, specialization, and trade

D. Economic systems

E. Property rights and the role of incentives

F. Marginal analysis

II. The Nature and Functions of Product Markets (55-70%)

A. Supply and Demand (15-20%)

1. Market equilibrium

2. Determinants of supply and demand

3. Price and quantity controls

4. Elasticity

a. Price, income, and cross-price elasticity of

demand

b. Price elasticity of supply

5. Consumer surplus, producer surplus and

allocative efficiency

6. Tax incidence and deadweight loss

B. Theory of Consumer Choice (5-10%)

1. Total utility and marginal utility

2. Utility maximization: equalizing marginal

utility per dollar

3. Individual and market demand curves

4. Income and substitution effects

C. Production and Costs (10-15%)

1. Production functions: short and long run

2. Marginal product and diminishing returns

3. Short-run costs

4. Long-run costs and economies of scale

5. Cost minimizing input combination

and productive efficiency

D. Firm behavior and market structure

(25-35%)

1. Profit

a. Accounting versus economic profits

b. Normal profit

c. Profit maximization: MR=MC rule

2. Perfect competition

a. Profit maximization

b. Short-run supply and shutdown decision

c. Behavior of firms and markets in the short

run and in the long run

d. Efficiency and perfect competition

II. The Nature and Functions of Product Markets (continued)

3. Monopoly

a. Sources of market power

b. Profit maximization

c. Inefficiency of monopoly

d. Price discrimination

e. Natural monopoly

4. Oligopoly

a. Interdependence, collusion, and cartels

b. Game theory and strategic behavior

c. Dominant strategy

d. Nash equilibrium

5. Monopolistic competition

a. Product differentiation and role of

advertising

b. Profit maximization

c. Short-run and long-run equilibrium

d. Excess capacity and inefficiency

III. Factor Markets (10-18%)

A. Derived factor demand

B. Marginal revenue product

C. Hiring decisions in the markets for labor

and capital

D. Market distribution of income

IV. Market Failure and the Role of Government (12-18%)

A. Externalities

1. Marginal social benefit and marginal social

cost

2. Positive externalities

3. Negative externalities

4. Remedies

B. Public goods

1. Public versus private goods

2. Provision of public goods

C. Public policy to promote competition

1 Antitrust policy

2. Regulation

D. Income distribution

1. Equity

2. Sources and measures of income

inequality

MACROECONOMICS – 7 Units

I. Basic Economic Concepts (8-12%)

A. Scarcity, choice, and opportunity costs

B. Production possibilities curve

C. Comparative advantage, specialization, and

exchange

D. Demand, supply, and market equilibrium

E. Macroeconomic issues: business cycle,

unemployment, inflation, growth

II. Measurement of Economic Performance (12-16%)

A. National income accounts

1. Circular flow

2. Gross domestic product

3. Components of gross domestic product

4. Real vs. nominal gross domestic product

B. Inflation measurement and adjustment

1. Price indices

2. Nominal and real values

3. Costs of inflation

C. Unemployment

1. Definition and measurement

2. Types of unemployment

3. Natural rate of unemployment

III. National Income and Price Determination (10-15%)

A. Aggregate demand

1. Determinants of aggregate demand

2. Multiplier and crowding-out effects

B. Aggregate supply

1. Short-run and long-run analyses

2. Sticky versus flexible wages and prices

3. Determinants of aggregate supply

C. Macroeconomic equilibrium

1. Real output and price level

2. Short and long run

3. Actual versus full-employment output

4. Business cycle and economic fluctuations

IV. Financial Sector (15-20%)

A. Money, banking, and financial markets

1. Definition of financial assets: money,

stocks, bonds

2. Time value of money (present and future

value)

3. Measures of money supply

IV. Financial Sector (continued)

4. Banks and creation of money

5. Money demand

6. Money market and the equilibrium

nominal interest rate

B. Loanable funds market

1. Supply of and demand for loanable funds

2. Equilibrium real interest rate

3. Crowding out

C. Central bank and control of the money

supply

1. Tools of central bank policy

2. Quantity theory of money

3. Real versus nominal interest rates

V. Stabilization Policies (20-30%)

A. Fiscal and monetary policies

1. Demand-side effects

2. Supply-side effects

3. Policy mix

4. Government deficits and debt

B. The Phillips curve

1. Short-run and long-run Phillips curves

2. Demand-pull versus cost-push inflation

3. Role of expectations

VI. Economic Growth (5-10%)

A. Definition of economic growth

B. Determinants of economic growth

1. Investment in human capital

2. Investment in physical capital

3. Research and development, and

technological progress

C. Growth policy

VII. Open Economy: International Trade and Finance (10-15%)

A. Balance of payments accounts

1. Balance of trade

2. Current account

3. Financial account (formerly known as

capital account)

B. Foreign exchange market

1. Demand for and supply of foreign

exchange

2. Exchange rate determination

3. Currency appreciation and depreciation

C. Imports, exports, and financial capital

flows

D. Relationships between international and

domestic financial and goods markets

SUPPLEMENTAL TOPICS – 2 Units

Economics for Citizenship

A. Economic way of thinking

Economics for Life

A. Resources for personal financial health

B. Investing and saving

Course Schedule:

|AP Economics 2015-2016 Course Schedule |

|Tentative Dates |Unit |Readings |

|9/8 -9/9 |Intro to AP Econ |Wheelan, Naked Economics |

| | |Krugman: 1 |

|Sept. |Micro I: Basic Economic Concepts |Krugman: 1, 3, 4 |

|Oct. |Micro II: The Nature and Functions of Product Markets |Krugman: 5-9, 46-68 |

|Nov. |Micro III: Factor Markets |Krugman: 69-73 |

|Dec. |Micro IV: Market Failure and the Role of Government |Krugman: 74-78 |

|January |Macro I/II/VI (combined): Basic Economic Concepts / Measurement of |Krugman: 2, 10-15, 37-40 |

| |Economic Performance / Economic Growth | |

|Cumulative Exam - Microeconomics |

|February |Macro III: National Income and Price Determination |Krugman: 16-21 |

|March |Macro IV / V (combined): Financial Sector / Stabilization Policies |Krugman: 22-36 |

|April |MacroVII: Open Economy: International Trade and Finance |Krugman: 41-45 |

|Cumulative Exam - Macroeconomics |

|May: AP Exam Prep |

|May 114h - AP MACROECONOMICS EXAM & May 13th AP MICROECONOMICS EXAM |

|AP Exams - June |Economics for Citizenship |T.B.A. |

| |Economics for Life | |

|FINAL |

Course Texts and Materials:

• Anderson, David, and Margaret Ray. Krugman’s Economics for AP*. Worth Publishers / BFW, 2011.

• Wheelan, Charles. Naked Economics. New York: Norton, 2002.

• Supplemental articles from The Wall Street Journal, The New York Times, The Economist, The Financial Times, The Atlantic Monthly, , and The Naked Economist at Finance..

Course Website:

Many course files and assignments can be found at the above website by clicking the “AP Econ Files” heading.

Grading Policy:

Students will be assessed in a variety of manners. Marking period grades will be determined using a total points system.

Content Knowledge: May include but not limited to:

• Unit assessments with multiple choice and free-response sections

• Cumulative exams

• Quizzes (may be announced or unannounced)

• Presentation projects: individual and/or cooperative assignments

Process: May include but not be limited to

• Worksheets from the NCEE

• Module FAQ’s and key term sheets

• Written assignments such as essays and/or article reviews

• Visual aid activities

• Graded economics discussion

• Model building activities

Homework: Daily homework assignments will be announced in class and will be posted on Genesis. Students are responsible for maintaining pace with the course readings and for checking Genesis for assignments and my web page for announcements.

Final Grades: Final grades will be determined according to the calculation and grading scales set by the Montgomery Township School District.

AP Exams: The AP Microeconomics and Macroeconomics exams will be administered in May 2016. Students are expected, but not required, to take the AP Exams. Students will be updated further on exam details during the year.

Notebooks: Students are required to maintain a separate and specific AP Economics binder(s). For easy portage, students may maintain individual Microeconomics and Macroeconomics binders. Students are asked to use a binder that can neatly store three-hole punched class notes and handouts.

Absences, Late Work, and Missed Work: It is the student's responsibility to make arrangements with the teacher to remediate missed assignments and grades due to absences. Arrangements can be made via e-mail and students can complete missed work after school. Upon return to school from an absence, students have one day to make arrangements to make up work. Late work will be penalized ½ credit per day unless arrangements are made with the teacher stating otherwise. If a conscientious effort is made to inform the teacher of extenuating circumstances resulting in late work PRIOR to the class period an assignment is due, the teacher will give full consideration to a reasonable request for an extension.

Classroom Conduct: AP Economics students are expected to arrive promptly and prepared each day for class. Students are required to conduct themselves in a respectful, courteous, and tolerant manner. In addition to the policies and procedures contained within this syllabus, all AP Economics students are expected to conduct themselves in accordance with the policies and procedures outlined by the rules and regulations of Montgomery High School and the Montgomery Township School District.

Parent - Teacher Contact: Parents are encouraged to check the course website and keep up with their student’s progress and assignments. For the most expedient response to inquiries, parents should contact the teacher at jgriffin@mtsd.us.

Academic Honesty: Any student work plagiarized in part or whole will be given a grade of zero.

If the teacher needs to alter or amend any of these policies, he will inform students and parents via the course website.

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