AP Microeconomics Reading and Writing Workshop
Topic: Market Structures and Factor Markets
Objectives
Session 1: Understanding Market Structures
Reading Assignment
Session 2: Factor Markets and Resource AllocationReading Assignment
FRQs (Free Response Questions)FRQ 1: Market StructuresA. Explain the key characteristics of perfect competition, monopoly, monopolistic competition, and oligopoly.
B. Provide a real-world example of each market structure and justify your classification.
C. How do firms in each market structure make decisions regarding price and output?
FRQ 2: Factor MarketsA. Describe how wages are determined in a perfectly competitive labor market.
B. Explain the role of marginal revenue product (MRP) in hiring decisions.
C. Discuss how government policies such as minimum wage laws or union regulations affect labor markets.
This workshop combines classical economic theory with modern applications, helping students strengthen both reading comprehension and FRQ writing skills.
Objectives
- Analyze market structures and factor markets through historical and economic texts.
- Develop writing skills by responding to FRQs with clear economic reasoning.
- Use public domain works to connect classical economic thought with modern applications.
Session 1: Understanding Market Structures
Reading Assignment
- Excerpt from The Wealth of Nations by Adam Smith (1776) – Discusses competition and division of labor.
- Excerpt from Principles of Economics by Alfred Marshall (1890) – Covers supply, demand, and equilibrium.
- How does Adam Smith describe competition in a market economy?
- What role do supply and demand play in determining market equilibrium according to Marshall?
- How do these classical ideas relate to modern market structures (perfect competition, monopoly, monopolistic competition, oligopoly)?
- Write a one-page response comparing Smith’s and Marshall’s views on competition and pricing. Use examples from modern industries.
Session 2: Factor Markets and Resource AllocationReading Assignment
- Excerpt from Progress and Poverty by Henry George (1879) – Discusses land, labor, and wages.
- Excerpt from Principles of Political Economy by John Stuart Mill (1848) – Covers capital and labor distribution.
- What factors determine wages according to George and Mill?
- How do these classical perspectives apply to modern labor markets?
- What are the effects of government intervention on factor markets?
- Explain how land, labor, and capital interact in today’s economy, using evidence from classical texts and modern examples.
FRQs (Free Response Questions)FRQ 1: Market StructuresA. Explain the key characteristics of perfect competition, monopoly, monopolistic competition, and oligopoly.
B. Provide a real-world example of each market structure and justify your classification.
C. How do firms in each market structure make decisions regarding price and output?
FRQ 2: Factor MarketsA. Describe how wages are determined in a perfectly competitive labor market.
B. Explain the role of marginal revenue product (MRP) in hiring decisions.
C. Discuss how government policies such as minimum wage laws or union regulations affect labor markets.
This workshop combines classical economic theory with modern applications, helping students strengthen both reading comprehension and FRQ writing skills.