AP Microeconomics

By taking on the role of a leader at a fictitious company, you will learn fundamental economic concepts, including scarcity, opportunity costs and trade-offs, productivity, economic systems and institutions, exchange, money, and interdependence.

Major Concepts:

  • Scarcity
  • Resource allocation
  • Economic systems
  • Production Possibilities Curve (Frontier)
  • Reading and constructing basic economics graphs
  • Comparative advantage and trade
  • Cost-benefit analysis
  • Marginal analysis and impact on consumer choice
  • The law of demand and determinants of demand
  • The law of supply and determinants of supply
  • Price elasticity of demand
  • Price elasticity of supply
  • Cross-price and income elasticity
  • Market equilibrium
  • Constructing and interpreting market graphs
  • Economic surplus
  • Market disequilibrium
  • International trade and public policy
  • The production function
  • Short-run production costs
  • Long-run production costs
  • Types of profit
  • Profit maximization of the firm
  • A firm’s short-run production decisions
  • A firm’s long-run decisions to enter or exit a market
  • The perfectly competitive market model
  • Allocative and productive efficiency
  • Distinguishing imperfect from perfect competition
  • Characteristics of imperfectly competitive markets
  • The monopoly model
  • Basics of the natural monopoly model
  • Price discrimination in a monopoly
  • The monopolistic competition model
  • Oligopoly and game theory
  • Reading and analyzing a payoff matrix
  • Defining factor (resource) markets
  • Differentiating input from output markets
  • Identifying changes in factor demand and factor supply and outcomes
  • Profit maximization in a perfectly competitive factor market
  • The monopsony model
  • Socially optimal production
  • Defining market failure
  • Efficient versus inefficient market outcomes
  • Externalities
  • Public goods
  • Private goods
  • Effects of government intervention
  • Comparing government intervention in different market structures
S.No.Program NameFee ComponentAmount (USD)Description
1.RegularCourse Fee$ 200To be paid by the student at the time of Registration.

Grade Level

  Grade 10, 11, 12

Duration

  Semester

Requirements

 Household items for lab experiments

Prerequisites

Algebra 1 recommended

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