AP Microeconomics
Overview
Microeconomics
Microeconomics is a branch of economics that studies the behavior of how the individual modern household and firms make decisions to allocate limited resources. Typically, it applies to markets where goods or services are being bought and sold...
and/or gaining advanced standing in college
College
A college is an educational institution or a constituent part of an educational institution. Usage varies in English-speaking nations...
. The course begins with a study of fundamental economic concepts such as scarcity
Scarcity
Scarcity is the fundamental economic problem of having humans who have unlimited wants and needs in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs. Alternatively, scarcity implies that not all of society's goals can be...
, opportunity costs, production possibilities, specialization, and comparative advantage
Comparative advantage
In economics, the law of comparative advantage says that two countries will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods...
. Major topics include the nature of functions of product markets; factor markets; and efficiency, equity, and the role of government.
- Basic Economic Concepts
- The Nature and Functions of Product Markets
- Factor Markets
- Market Failure and the Role of Government
- Multiple Choice [70 minutes, weighted 2/3 of the total exam score]
- Free-Response [50 minutes, one 25 minute essay, two 12.5 minute essays, weighted 1/3 of the total exam score]
In the 2010 administration, 51,601 students took the exam.
