CONTENTS

Preface

Acknowledgments

About the Author

Introduction: The Five-Step Program

STEP 1   Set Up Your Study Program

1   What You Need to Know About the AP Microeconomics Exam

Background Information

Some Frequently Asked Questions About the AP Economics Exams

2   How to Plan Your Time

Three Approaches to Preparing for AP Exams

Calendar for Each Plan

STEP 2   Determine Your Test Readiness

3   Take the Diagnostic Exam

Diagnostic Exam: AP Microeconomics

STEP 3   Develop Strategies for Success

4   How to Approach Each Question Type

Section I: Multiple-Choice Questions

Section II: Free-Response Questions

STEP 4   Review the Knowledge You Need to Score High

5   Fundamentals of Economic Analysis

5.1 Scarce Resources

5.2 Production Possibilities

5.3 Functions of Economic Systems

6   Demand, Supply, Market Equilibrium, and Welfare Analysis

6.1 Demand

6.2 Supply

6.3 Market Equilibrium

6.4 Welfare Analysis

7   Elasticity, Microeconomic Policy, and Consumer Theory

7.1 Elasticity

7.2 Microeconomic Policy and Applications of Elasticity

7.3 Trade Barriers

7.4 Consumer Choice

8   The Firm, Profit, and the Costs of Production

8.1 Firms, Opportunity Costs, and Profits

8.2 Production and Cost

9   Market Structures, Perfect Competition, Monopoly, and Things Between

9.1 Perfect Competition

9.2 Monopoly

9.3 Monopolistic Competition

9.4 Oligopoly

10 Factor Markets

10.1 Factor Demand

10.2 Least-Cost Hiring of Multiple Inputs

10.3 Factor Supply and Market Equilibrium

10.4 Imperfect Competition in Product and Factor Markets

11 Public Goods, Externalities, and the Role of Government

11.1 Public Goods and Spillover Benefits

11.2 Pollution and Spillover Costs

11.3 Income Distribution and Tax Structures

STEP 5   Build Your Test-Taking Confidence

AP Microeconomics Practice Exam 1

AP Microeconomics Practice Exam 2

ELITE
STUDENT
EDITION  5 Minutes to a 5

90 AP Microeconomics Activities and Questions in 5 Minutes a Day

90 AP Macroeconomics Activities and Questions in 5 Minutes a Day

Appendixes

Further Reading

Websites

Glossary

Important Formulas and Conditions