AP Micro Economics/Macro Economics

Excelling on the AP Economics Exams About This Book The purpose of this book is to provide a review for the Advanced Placement Economics Examinations written in high school vernacular. Our mission is to translate economics to a level understandable to the average student. One full-length practice exam is included for both the Macroeconomics exam and the Microeconomics exam. Use them, along with the detailed explanations of answers, to help determine your strengths and weaknesses, and to prepare yourself to score well on the actual exams. About the Advanced Placement Program The Advanced Placement program is designed to provide high school students with the opportunity to pursue college-level studies. The AP Economics course has two components (Macroeconomics and Microeconomics), each of which is tested and graded separately. Students are expected to gain college-level skills and acquire college-level knowledge of economics through the AP course. Upon completion of the course, students may take the AP exam for Macroeconomics, Microeconomics, or both. Test results are used to grant course credit and/or determine placement level in the subject when entering college. AP exams are offered every May. The exam schedule allows everyone the opportunity to take both exams on the same dayMacroeconomics in the morning, Microeconomics in the afternoon. For more information contact Educational Testing Service or the College Board at: AP Services P.O. Box 6671 Princeton, NJ 08541-6671 Phone: (609) 771-7300 or (888) 225-5427 Fax: (609) 530-0482 E-mail: apexams@ets.org Web site: www.collegeboard.com About the AP Economics Exams The two components of the AP Economics course are tested and graded separately. It is possible to receive a qualified rating (3 or greater) on one exam and not the other. Each exam carries three college credit hours, although many schools require a grade of 4 or 5 to replace their introductory macro or micro course. The exams are 2 hours and 10 minutes long. Each section in each exam is completed separately. You will have 70 minutes to answer 60 multiple-choice questions, worth 67% of your final grade. Each correct answer is worth one point, and each incorrect answer deducts 1/4 point. The free-response section is 60 minutes long and has three questions. You will have a 10-minute reading section, followed by 50 minutes to answer the questions. The first is a long essay and worth 15 points; the second and third (short) essay questions are worth 15 points total. The points for this section comprise 33% of the exam. AP Microeconomics Exam Distribution I. Basic Economic Concepts (814%) A. Scarcity, choice, and opportunity cost B. Production possibilities curve C. Comparative advantage, specialization, and trade D. Economic systems E. Property rights and the role of incentives F. Marginal analysis II. The Nature and Functions of Product Markets (5070%) A. Supply and demand (1520%) 1. Market equilibrium 2. Determinants of supply and demand 3. Price and quantity controls 4. Elasticity a. Price, income, and cross-elasticities of demand b. Price elasticity of supply 5. Consumer surplus, producer surplus, and market effi ciency 6. Tax incidence and deadweight loss B. Theory of consumer choice (510%) 1. Total utility and marginal utility 2. Utility maximization: equalizing marginal utility per dollar 3. Individual and market demand curves 4. Income and substitution effects C. Production and costs (1015%) 1. Production functions: short and long runSattora, Richard is the author of 'AP Micro Economics/Macro Economics', published 2008 under ISBN 9780738603605 and ISBN 0738603600.