AP Micro Study Plan

Unit 1: Basic Economic Concepts (12-15% of the exam)

  • 1.1 Scarcity

  • 1.2 Resource 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

Unit 2: Supply and Demand (20-25% of the exam)

  • 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 Effects of Government Intervention in markets

  • 2.8 International Trade and Public Policy

    • If a nation becomes an exporter of a certain good, the price domestically will increase because producers will sell more abroad and less at home

Unit 3: Production, Cost, and the Perfect Competition Model (22-25% of the exam)

  • 3.1 The Production Function

  • Short-Run Production Costs

  • Long-Run Production Costs

  • Types of Profit

  • Profit Maximization

  • Firms’ Short-Run Decisions to produce and Long-Run decisions to enter or exit a market

  • Perfect Competition

Unit 4: Imperfect Competition (15-22% of the exam)

  • Introduction to Imperfectly Competitive Markets

  • Monopoly

  • Price Discrimination

  • Monopolistic Competition

  • Oligopoly and Game Theory

Unit 5: Factor Markets (10-13% of the exam)

  • Introduction to Factor Markets

  • Changes in Factor demand and Factor Supple

  • Profit-Maximization Behavior in perfectly competitive factor markets

  • Monopsonistic markets

Unit 6: Market Failure and the Role of Government (8-13% of the exam)

  • Socially Efficient and Inefficient Market Outcomes

  • Externalities

    • Marginal Social Benefit = Marginal Private Benefit + Marginal External Benefit

  • Public and Private Goods

  • The Effects of Government intervention in different market structures

  • Inequality


Resources:


To Review:

  • Factor markets

  • Types of taxes!!!!!!

    • Tax incidence - the amount of tax burden sellers and buyers pay

      • Consumers: tax burden is the difference between the before and after-tax prices * quantity

      • Producers: tax burden is the difference between the price received before and after the tax * quantity

  • Income effect


Tips:

  • Label axis, graph name for FRQs

  • Don’t forget to go up to D to get the price!!!!!

  • Label shaded areas on FRQs!


Princeton Review Practice Test #2 Online

  • 55/60 MCQs

  • 9/10 FRQ 1

  • 4/5 FRQ 2

  • 5/5 FRQ 3

  • Very good! Princeton Review has some weird terms


Barron’s Practice Test On paper

  • 59/60 MCQs

  • 10/10 FRQ 1

  • 5/5 FRQ 2

  • 4/5 FRQ 3

  • You freaking cooked!!!!