AP Economics

Unit 1: Unit 1: Basic Economic Concepts

Unit Outline
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

Unit Powerpoints:
-Intro powerpoint Do You Think Like an Economist
-Powerpoint for unit Basic Economic Concepts

Unit 2 Part 1: Supply and Demand, Consumer Choice and Production Costs

Unit Outline
A. Supply and demand
  1. Market equilibrium
  2. Determinants of supply and demand
  3. Price and quantity controls
  4. Elasticity here
    a. Price, income, and cross-price elasticities of demand
    b. Price elasticity of supply
  5. Consumer surplus, producer surplus, and market efficiency
  6. Tax incidence and deadweight loss
B. Theory of consumer choice
  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
  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

Unit Powerpoints:
-Production Costs Powerpoint Here

Unit 2 Part 2: Firm Behavior and Market Structures

Unit Outline
1. Profit
  a. Accounting versus economic profits
  b. Normal profit
  c. Profit maximization: MR=3DMC 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
3. Monopoly=20
  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
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

Unit Powerpoints:
-Pure Monopoly powerpoint Here
-Monopolistic Competition Notes Here
-Oligopoly Notes part 1 Here
-Production Costs Unit Review Here

Unit 3: Factor Markets

Unit Outline
A. Derived factor demand
B. Marginal revenue product
C. Labor market and firms; hiring of labor
D. Market distribution of income

Unit Powerpoints:
-Factor Markets Powerpoint - Chapter 25 Here
-Factor Market notes broken down Here

Unit 4: Role of Government and Market Failures

Unit Outline
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 of income inequality

Unit Powerpoints:
-Role of Government and Market failures powerpoint Here

Macroeconomics