AP Microeconomics Reading and Writing Workshop
Topic: Public Goods, Externalities, and Government Interventions
Objective
Students will analyze economic concepts using public domain readings, apply their understanding through discussion, and develop written responses to AP-style Free Response Questions (FRQs).
Part 1: Reading and Discussion
Selected Readings from Public Domain
Part 2: Writing Component
FRQ Practice Questions
FRQ 1: Public Goods
A. Define public goods and explain why they are considered a market failure.
B. Identify two examples of public goods and justify why they meet the criteria.
C. Explain how government intervention can address the under-provision of public goods.
FRQ 2: Externalities and Market Failure
A. Define both positive and negative externalities.
B. Provide an example of each and explain how they create inefficiencies in the market.
C. Describe two policies the government can use to address negative externalities.
FRQ 3: Government Interventions and Economic Efficiency
A. Explain the concept of a Pigovian tax and how it is used to correct negative externalities.
B. Discuss the potential unintended consequences of government intervention in the economy.
C. Evaluate the effectiveness of subsidies in promoting goods with positive externalities.
Workshop Structure
Assessment
Objective
Students will analyze economic concepts using public domain readings, apply their understanding through discussion, and develop written responses to AP-style Free Response Questions (FRQs).
Part 1: Reading and Discussion
Selected Readings from Public Domain
- The Wealth of Nations by Adam Smith (1776)
- Excerpt: Discussion on the role of government in providing public goods.
- Key Concept: Justification for government intervention.
- Principles of Political Economy by John Stuart Mill (1848)
- Excerpt: The necessity of taxation and regulation.
- Key Concept: Government’s role in correcting externalities.
- The Theory of Public Finance by Richard Musgrave (1959, selected portions in public domain) **
- Excerpt: Explanation of public goods and market failures.
- Key Concept: The rationale for public sector activity.
- What are the key characteristics of public goods, and why might the free market fail to provide them efficiently?
- How do positive and negative externalities impact overall economic efficiency?
- What role does government intervention play in addressing externalities?
- How do different taxation policies affect economic outcomes and incentives?
Part 2: Writing Component
FRQ Practice Questions
FRQ 1: Public Goods
A. Define public goods and explain why they are considered a market failure.
B. Identify two examples of public goods and justify why they meet the criteria.
C. Explain how government intervention can address the under-provision of public goods.
FRQ 2: Externalities and Market Failure
A. Define both positive and negative externalities.
B. Provide an example of each and explain how they create inefficiencies in the market.
C. Describe two policies the government can use to address negative externalities.
FRQ 3: Government Interventions and Economic Efficiency
A. Explain the concept of a Pigovian tax and how it is used to correct negative externalities.
B. Discuss the potential unintended consequences of government intervention in the economy.
C. Evaluate the effectiveness of subsidies in promoting goods with positive externalities.
Workshop Structure
- Introduction (15 minutes): Overview of public goods, externalities, and government interventions.
- Reading and Annotating (30 minutes): Students read excerpts and highlight key concepts.
- Group Discussion (30 minutes): Students discuss readings using provided discussion questions.
- Writing Activity (45 minutes): Students choose one FRQ and develop a structured response.
- Peer Review and Feedback (30 minutes): Students exchange responses for constructive feedback.
- Wrap-Up (15 minutes): Recap key takeaways and discuss real-world applications.
Assessment
- Participation in Discussion (20 points): Engagement and depth of analysis.
- FRQ Response (50 points): Clarity, application of economic principles, and use of evidence.
- Peer Review Contribution (15 points): Quality of feedback provided to peers.
- Reflection (15 points): Short paragraph on key takeaways from the workshop.