Course Description

The purpose of Economics 12AP is to introduce students to the study of economics in two related but distinct, semestered courses.  In Microeconomics, students will be studying basic economics concepts, the nature and function of product and factor markets, efficiency, and the role of government.  In Macroeconomics students will be studying basic concepts, measurement of economic performance, national income, price determination, growth, and international finance, exchange and trade.  

Diligent and accomplished students will be well prepared to write the College Board’s AP exams in May.

Economics 12AP is a challenging course that will require from you a significant amount of work over the next ten months.  Your grade in this course, and the extent of the knowledge you develop, will be in direct proportion to the work you do in class and at home in preparation for classes and tests.  Careful reading and studying of the text are particularly important prior to lessons.  Economics is a subject of international relevance and is worthy of the investment in time and effort that you will make.

Evaluation

Throughout the year, you will be required to demonstrate your understanding of the concepts discussed in the course through home assignments, class work and major tests.  Major tests will occur after every third or fourth chapter covered and will be announced well in advance.  In addition, each student can undertake an exploration of particular topics, relevant to the course, to extend and enhance his understanding, for extra credit.  Marks for the first term, and the whole year, will be based on the following formula:

Unit Tests 100 %

Assignments T.B.D.

All students are encouraged to exceed the minimum assessment requirements by doing extra assignments or analyses, but only after seeking approval from the instructor regarding the assignment.  Examples of such work would include a book review, library research, Internet search or oral report on a relevant topic.  Any such work must have a full and complete list of references. Such assignments are specifically and only applicable to the demonstration of learning not adequately demonstrated on a formal test.   

Text

Economics (Fourteenth Canadian Edition), Ragan, Pearson Canada

Department Philosophy

The ADST Department of St. George’s School is committed to the School’s Mission to “build fine young men”, and most particularly to the Strategic Plan, Priority A, “A Boys’ Learning”.   The Department recognizes the importance of raising young men who are curious, engaged and care about the world around them. As the world faces many serious challenges in the 21st century, the Department’s approach to pedagogy reflects the School’s belief that the leaders it creates need to have a broad world perspective that allows them to be creative and empathetic problem solvers.  

To this end, the Department has revitalized its pedagogy and moved in the direction of problem based, authentic learning.  The faculty’s teaching is focused on student-centred learning, personal growth and transformation, while at the same time reflecting a strong understanding of best practices in boys’ learning. The Department’s conception of teaching allows students to represent their knowing in multiple ways through a variety of instructional strategies and learning opportunities.   In the world today, students will rarely be expected to simply memorise and recall a series of facts without a deepened understanding of what this knowing means.  Instead, they will constantly face new information and challenges and how they respond to these will determine their ability to succeed or fail. 

In the Social Sciences Department this year, the boys will experience a variety of learning activities such as individual and group problem-based learning projects, research essays, Harkness discussions, online forums, student blogs, wikis and more, which all allow the boys to collaborate, question, innovate and create.  In an attempt to stir a passion for Social Sciences in the students, the Department also encourages the boys to find an aspect of the course that most interests them, a question that drives their learning and inspires them to further explore their passion. It is the Department’s hope that by making learning more authentic, the students will further engage with the material and experience it in a manner that will be relevant to them not just in the classroom, but also in their future lives. 

      

1. Overview of the Course – Expectations

I. What is Economics?

2. Chapter 1 - Economic Issues and Concepts Pages 4 to 11  

• View the market as a compendium of individual decisions.
• Understand the importance of scarcity, choice and opportunity cost and how they are reflected in the production possibilities curve.
• Explain the circular flow of income and expenditures.
• Understand the variety of economic systems in practice.

3. Choices in Economics Pages 12 to 26
4. Chapter 2 - How Economists Work Pages 32 to 44

• Recognise the difference between positive and normative statements
• Recognise several types of economic data         

MICROECONOMICS

II. Introduction to Supply and Demand

5. Chapter 3 – Supply and Demand             Pages 55 to 67

• Understand determination of quantities demanded and supplied.
• Distinguish between shifts of demand and supply curves and movements along curves.
• Recognise forces that drive an economy towards equilibrium.
• Understand the four laws of supply and demand.

6. Price Determination Pages 68 to 79

• The Market Concept
• Changes in Market Prices

7. Test 1 on Chapters 1 – 3
8. Chapter 4 – Elasticity Pages 81 to 94

• Understand the measurement and determinants of demand and supply elasticity.
• Explain how a tax impacts the buyer and seller using elasticity concepts.
• Understand the effect of income on quantity demanded for normal and inferior goods.
• Recognise the difference between substitute and complementary goods and how these ideas relate to cross elasticity of demand.

9. Other Elasticity Measures and Applications Pages 95 to 100

• Income elasticity of Demand
• Cross Elasticity of Demand

10. Chapter 5 – Markets in Action Pages 103 to 121

• Understand the interrelated nature of markets.
• Understand the impact of price floors and ceilings.
• Examine the ways that governments intervene in various agricultural markets.

III. Consumers and Producers

11. Chapter 6 – Consumer Behaviour Pages 124 to 139

• Understand the concept and implications of marginal utility.
• Understand how a consumer maximises utility and the notion of consumer surplus.
• Distinguish between total value, marginal value, and market value.
• Explain how changes in price produce both an income effect and a substitution effect.

12. Test 2 on Chapters 4 - 6                                            
13. Chapter 7 – Production in the Short Run Pages 153 to 161

• Know the different forms of business organisation and the various ways they can finance their operations.
• Distinguish between accounting profits and economic profits.
• Explain the law of diminishing marginal returns
• Understand the relationship between fixed and variable costs, and the relationship between total costs, average costs and marginal costs.

15. Production and Costs/ Do Firms Maximize Profits? Pages 162 to 174

• Short-run costs
• Cost Curves
• Capacity

16. Chapter 8 – Production in the Long Run Pages 177 to 185

• Understand and explain the concepts of cost minimisation.
• Explain the relationship between short run and long run cost curves      

17. The Very Long Run Pages 186 to 192

• Technological change

 IV. Markets, Pricing and Efficiency

18. Chapter 9 – Competitive Markets Pages 200 to 224

• Define perfectly competitive markets
• Explain the differences between a firms demand curve and that for the industry.
• Define the conditions for profit maximisation.
• Identify short run losses and profits.
• Describe the role of entry and exit in a competitive industry.
• Understand how firms respond to long run changes in demand.

19. Test 3 on Chapters 7 – 9
20. Chapter 10 – Monopoly Pages 227 to 240

• Explain the marginal revenue curve for a monopolist.
• Understand how firms can form a cartel to realise monopoly profits.
• Cartels as Monopolies

21. Discriminating Monopolists Pages 241 to 250

• What is Price Discrimination
• Consequences

22. Chapter 11 – Imperfect Competition Pages 254 to 263

• Describe forms of imperfect competition
• Describe Price and Non Price Competition
• Describe Monopolistic Competition

23. Oligopolies Pages 263 to 277

• Co-operation vs. competition
• Game Theory
• Oligopolies in Practice

24. Chapter 12 – Economic Efficiency and Public Policy Pages 281 to 292

• Describe Productive (Technical) and Allocative Efficiency
• Efficiency and Market Structure
• Total Surplus and Market Failure

25. Public Policy             Pages 293 to 302

• Regulation to promote Efficiency
• Canadian & US Policy

26. Test 4 on Chapters 10 - 12                                        

V. Factor Markets

27. Chapter 13 – Factor Price and Factor Mobility Pages 307 to 316

• Income distribution
• Demand for Factors

28. Factor Markets Pages 317 to 332

• Differentials in Factor Pricing
• Pay Equity
• Economic Rent

31. Chapter 14 – Labour Markets Pages 337 to 348

• Wage Differentials
• Monopsony

32. Labour Unions Pages 348 to 357

•  Government in the Market Economy

33. Chapter 16 – Market Failure and Government Intervention Pages 384 to 400

• Market Power, ,
• Externalities
• Asymmetric Information
• Non-rivalrous and non-excludable goods

34. Government Objectives Pages 401 to 412

• Government Interventions

35. Chapter 17 – Environmental Policy Pages 417 to 420        

• Economics of Pollution Control
• Politics of Pollution Control
• Environmental Policy

37. AP Review Questions
38. AP Review Questions
39. Test 5 on Chapters 13, 14 & 16
40. Practice Micro-AP Exam Multiple Choice
41. Practice Micro-AP Exam Written Response
42. Final Micro Wrap-up