Mr.

Jim Griffin
AP Economics
Social Studies Department
Montgomery High School
[email protected]

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  People create economic systems to
affected by people’s choices 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.
1. Total utility and marginal utility
MICROECONOMICS - 4 Units 2. Utility maximization: equalizing
marginal
I. Basic Economic Concepts (8- utility per dollar
3. Individual and market demand
14%)
curves
A. Scarcity, choice and opportunity
4. Income and substitution effects
cost
C. Production and Costs (10-15%)
B. Production possibilities curve
1. Production functions: short and
C. Comparative advantage,
long run
absolute
2. Marginal product and
advantage, specialization, and
diminishing returns
trade
3. Short-run costs
D. Economic systems
4. Long-run costs and economies
E. Property rights and the role of
of scale
incentives
5. Cost minimizing input
F. Marginal analysis
combination
and productive efficiency
II. The Nature and Functions of D. Firm behavior and market
Product Markets (55-70%) structure
A. Supply and Demand (15-20%) (25-35%)
1. Market equilibrium 1. Profit
2. Determinants of supply and a. Accounting versus economic
demand profits
3. Price and quantity controls b. Normal profit
4. Elasticity c. Profit maximization: MR=MC
a. Price, income, and cross-price rule
elasticity of 2. Perfect competition
demand a. Profit maximization
b. Price elasticity of supply b. Short-run supply and shutdown
5. Consumer surplus, producer decision
surplus and c. Behavior of firms and markets
allocative efficiency in the short
6. Tax incidence and deadweight run and in the long run
loss d. Efficiency and perfect
B. Theory of Consumer Choice (5- competition
10%)
 2. Regulation
D. Income distribution
1. Equity
II. The Nature and Functions of 2. Sources and measures of
Product Markets (continued) income
3. Monopoly inequality
a. Sources of market power
b. Profit maximization
c. Inefficiency of monopoly
d. Price discrimination MACROECONOMICS – 7 Units
e. Natural monopoly
4. Oligopoly I. Basic Economic Concepts (8-
a. Interdependence, collusion, 12%)
and cartels A. Scarcity, choice, and
b. Game theory and strategic opportunity costs
behavior B. Production possibilities curve
c. Dominant strategy C. Comparative advantage,
d. Nash equilibrium specialization, and
5. Monopolistic competition exchange
a. Product differentiation and role D. Demand, supply, and market
of equilibrium
advertising E. Macroeconomic issues: business
b. Profit maximization cycle,
c. Short-run and long-run unemployment, inflation, growth
equilibrium
d. Excess capacity and II. Measurement of Economic
inefficiency Performance (12-16%)
A. National income accounts
III. Factor Markets (10-18%) 1. Circular flow
A. Derived factor demand 2. Gross domestic product
B. Marginal revenue product 3. Components of gross domestic
C. Hiring decisions in the markets product
for labor 4. Real vs. nominal gross domestic
and capital product
D. Market distribution of income B. Inflation measurement and
adjustment
IV. Market Failure and the Role 1. Price indices
of Government (12-18%) 2. Nominal and real values
A. Externalities 3. Costs of inflation
1. Marginal social benefit and C. Unemployment
marginal social 1. Definition and measurement
cost 2. Types of unemployment
2. Positive externalities 3. Natural rate of unemployment
3. Negative externalities
4. Remedies III. National Income and Price
B. Public goods Determination (10-15%)
1. Public versus private goods A. Aggregate demand
2. Provision of public goods 1. Determinants of aggregate
C. Public policy to promote demand
competition 2. Multiplier and crowding-out
1 Antitrust policy effects
B. Aggregate supply 4. Government deficits and debt
1. Short-run and long-run analyses B. The Phillips curve
2. Sticky versus flexible wages 1. Short-run and long-run Phillips
and prices curves
3. Determinants of aggregate 2. Demand-pull versus cost-push
supply inflation
C. Macroeconomic equilibrium 3. Role of expectations
1. Real output and price level
2. Short and long run VI. Economic Growth (5-10%)
3. Actual versus full-employment A. Definition of economic growth
output B. Determinants of economic
4. Business cycle and economic growth
fluctuations 1. Investment in human capital
2. Investment in physical capital
IV. Financial Sector (15-20%) 3. Research and development, and
A. Money, banking, and financial technological progress
markets C. Growth policy
1. Definition of financial assets:
money, VII. Open Economy:
stocks, bonds International Trade and Finance
2. Time value of money (present (10-15%)
and future A. Balance of payments accounts
value) 1. Balance of trade
3. Measures of money supply 2. Current account
3. Financial account (formerly
known as
IV. Financial Sector (continued) capital account)
4. Banks and creation of money B. Foreign exchange market
5. Money demand 1. Demand for and supply of
6. Money market and the foreign
equilibrium exchange
nominal interest rate 2. Exchange rate determination
B. Loanable funds market 3. Currency appreciation and
1. Supply of and demand for depreciation
loanable funds C. Imports, exports, and financial
2. Equilibrium real interest rate capital
3. Crowding out flows
C. Central bank and control of the D. Relationships between
money international and
supply domestic financial and goods
1. Tools of central bank policy markets
2. Quantity theory of money SUPPLEMENTAL TOPICS – 2
3. Real versus nominal interest Units
rates
Economics for Citizenship
V. Stabilization Policies (20-
A. Economic way of thinking
30%)
A. Fiscal and monetary policies
1. Demand-side effects
2. Supply-side effects
3. Policy mix
Economics for Life
 A. Resources for personal financial B. Investing and saving
health

Course Schedule:

AP Economics 2015-2016 Course Schedule

Tentative Unit Readings
Dates
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 Krugman: 5-9, 46-68
Product Markets
Nov. Micro III: Factor Markets Krugman: 69-73
Dec. Micro IV: Market Failure and the Role Krugman: 74-78
of Government
January Macro I/II/VI (combined): Basic Krugman: 2, 10-15, 37-40
Economic Concepts / Measurement of
Economic Performance / Economic
Growth
Cumulative Exam - Microeconomics
February Macro III: National Income and Price Krugman: 16-21
Determination
March Macro IV / V (combined): Financial Krugman: 22-36
Sector / Stabilization Policies
April MacroVII: Open Economy: International Krugman: 41-45
Trade and Finance
Cumulative Exam - Macroeconomics
May: AP Exam Prep
May 114h - AP MACROECONOMICS EXAM & May 13th AP MICROECONOMICS
EXAM
AP Exams - Economics for Citizenship T.B.A.
June 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, Freakonomics.com, and The Naked Economist at
Finance.yahoo.com.
Course Website: http://www.mtsd.k12.nj.us/Domain/222

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 [email protected].

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.