AP Microeconomics

Advanced Placement Microeconomics is a full-year course that provides students with the opportunity to gain a fundamental understanding of the economy, one that will prove valuable to the college-bound student pursuing most any career path. Students will focus on the fundamental concepts of supply and demand, markets and prices, types of firms along with their costs and profits, market power, and the role of government in the economy including taxation and environmental economics. Students are strongly encouraged to take the AP exam offered in May. Strong performance on this exam may earn them college credits. AP Exams require a fee to be paid by the family. Families who meet financial eligibility guidelines will receive financial support. Any family concerned about paying for AP exam fees should consult with their student's counselor.

Unit 1: Basic Economic Concepts

Unit 2: Supply and Demand

Unit 3: Production, Cost, and the Perfect Competition Model

Unit 4: Imperfect Competition

Unit 5: Factor Markets

Unit 6: Market Failure and the Role of Government

BIG IDEA 1: SCARCITY AND MARKETS (MKT) Limited resources and unlimited wants result in the need to make choices. In a market economy, the choices of buyers and sellers determine market prices and the allocation of scarce resources.

BIG IDEA 2: COSTS, BENEFITS, AND MARGINAL ANALYSIS (CBA) There are trade-offs associated with any decision. Making optimal decisions requires evaluating the additional costs and benefits of possible actions.

BIG IDEA 3: PRODUCTION CHOICES AND BEHAVIOR (PRD) Firms seek to minimize costs and maximize profits, which influences their production decisions in the short run and long run.

BIG IDEA 4: MARKET INEFFICIENCY AND PUBLIC POLICY (POL) Private markets can fail to allocate resources efficiently, and well-designed public policy can endeavor to promote greater efficiency and equity in the economy