• Two key points

• Markets work

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When certain conditions are met, the market will provide the efficient allocation of resources

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• Markets fail

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When the certain conditions are not met, the market will not allocate resources efficiently.

AP Microeconomics

• Unit 1 Basic Economic Concepts (12-15%)��1.1 Scarcity�1.2 Resources allocation and economic systems�1.3 Production possibilities curve�1.4 Comparative advantage and trade�1.5 Cost-benefit analysis�1.6 Marginal analysis and consumer choice������ got milk?�

*overlap with macro

Property rights demo

Consumer choice example

• Unit 1 Model:�Production Possibilities Curve��

See macro powerpoint

• Unit 2 Supply and Demand (20-25%)��2.1 Demand�2.2 Supply �2.3 Price elasticity of demand�2.4 Price elasticity of supply�2.5 Other elasticities�2.6 Market equilibrium and consumer and producer surplus�2.7 Market disequilibrium and changes in equilibrium�2.8 The effect of government intervention in markets�2.9 International trade and public policy ��

Elasticity Lesson?

• Unit 2 Model:�Supply and Demand

Pearl Exchange Activity

Price and quantity controls

Elasticity

Consumer surplus, producer surplus, and allocative efficiency

Tax incidence and deadweight loss

Trade and public policy worksheet

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• Unit 3 Production, Cost, and the Perfect Competition Model (22-25%)��3.1 Production function�3.2 Short-run production costs�3.3 Long-run production costs�3.4 Types of profit�3.5 Profit maximization�3.6 Firms’ short-run decision to produce and long-run decision to enter or exit a market�3.7 Perfect competition��

Widgit production

Cost puzzle

diminishing returns video

• Unit 3 Model: Perfect Competition

Production functions

Cost curves

Perfect competition

Drawing graphs (coloring book)

LRPC Story PPT

Taxes (per unit v. lump sum)

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• Unit 4 Imperfect Competition (15-22%)��4.1 Introduction to imperfectly competitive markets�4.2 Monopoly�4.3 Price discrimination�4.4 Monopolistic competition�4.5 Oligopoly and game theory��

• Unit 4 Models: Monopoly/Monopolistic Competition�Oligopoly

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Drawing monopoly and monopolistic competition graphs

B.B. Wolfe PPT

(graphing activities, coloring book)

Market Structures and Advertising assignment

Excess capacity

Price discrimination

Oligopoly

Game theory

• Oligopoly

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http://www.iterated-prisoners-dilemma.net/ golden balls

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http://serendip.brynmawr.edu/playground/pd.html UVA experiments

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Nash Equilibrium Ultimatum game

Asymmetrical payoff matrices

The evolution of trust

Oligopoly worksheet

• Student Grade Payoff Matrix

You

Your

Partner

• Unit 5 Factor Markets (10 – 13%)��5.1 Introduction to factor markets�5.2 Changes in factor demand and factor supply�5.3 Profit-max behavior in perfectly competitive factor markets�5.4 Monopsonistic markets

S & D again (and the least-cost rule)

Changing names - MRP/MFC

Perfect and imperfect competition

Backward bending S curve

• Unit 5 Model: �Labor Markets���FTE The Job Jungle

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• Unit 6 Market Failure and the Role of Government (8-13%)��6.1 Socially efficient and inefficient market outcomes�6.2 Externalities�6.3 Public goods and private goods�6.4 The effects of government intervention on different market structures�6.5 Inequality��

• Section IV Model: The Lorenz Curve�S&D - Externalities

Gini coefficient

And S & D again (APIP externalities worksheet)

Public goods activity

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• Exam Tips and Reviewing

• Do not write in space

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• Verbs

Draw a correctly labeled…

Show/label/plot/indicate

Calculate

Explain (can use graphs and symbols)

Identify/determine

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• Use outline
• Keep going
• Reviewing
• Pencils/Pens

• Kahoot

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https://kahoot.com/welcomeback/

• Mock grading

• Finishing Up

• Best Practices
• Questions?
• Email me if I can help!!

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• ap2018@info.collegeboard.org

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• APSI Hotline in subject