According to the AP course description, AP Microeconomics is meant to introduce students to basic economic theory and to apply these theories to determine how individual consumers and producers behave in given market structures. “It places primary emphasis on the nature and functions of product markets and includes the study of factor markets and the role of government in promoting greater efficiency and equity in the economy.”
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There are no specific standards identified by the College Board, merely a summary of topics that should be included. Below is a blurb taken directly from the course description as published by the College Board that summarize what an effective course should include: “A well-designed course will incorporate key measures of income distribution (Lorenz curve and Gini coefficient) and examine the impact of government tax policies and transfer programs, both on the distribution of income and allocative efficiency.”
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Given the suggested AP content, below is a list of objectives for students that ties the curricular content with the topic of income inequality.
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Compare income inequality between countries using the Gini coefficient or Lorenz curve.
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Differentiate between various market structures and how each leads to varying amounts of income inequality.
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Identify the sources of and solutions to income inequality in America.
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Differentiate between progressive, proportional, and regressive income taxes.
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Explain how tariffs, price floors, taxes, and subsidies can be used to reduce income inequality.
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Debate the effectiveness of minimum wage to that of a universal basic income to reduce income inequality.
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Debate the effectiveness of subsidization to that of taxation to reduce income inequality.