--- title: "Unit 1 – Basic Economic Concepts - AP Macroeconomics" description: "Review Unit 1 – Basic Economic Concepts for AP Macroeconomics with Fiveable study guides and practice resources." canonical: "https://fiveable.me/ap-macro/unit-1" type: "unit" subject: "AP Macroeconomics" unit: "Unit 1 – Basic Economic Concepts" --- # Unit 1 – Basic Economic Concepts - AP Macroeconomics ## Overview Review Unit 1 – Basic Economic Concepts for AP Macroeconomics with Fiveable study guides and practice resources. ## Study Guides - [1.2 Opportunity Cost and the Production Possibilities Curve (PPC)](/ap-macro/unit-1/opportunity-cost-production-possibilities-curve-ppc/study-guide/tYxd5oXO5LDRLYfUOR69) - [1.4 Demand](/ap-macro/unit-1/demand/study-guide/835JaaqStIpec5YKysap) - [1.1 Scarcity](/ap-macro/unit-1/scarcity/study-guide/NQNFJuFA03Xe3Zl82IgD) - [1.3 Comparative Advantage and Trade](/ap-macro/unit-1/comparative-advantage-trade/study-guide/NqhKcXCbIlP40dR0SJGY) - [1.5 Supply](/ap-macro/unit-1/supply/study-guide/auVQK1N9VWZQ0TOeix3K) - [1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium](/ap-macro/unit-1/market-equilibrium-disequilibrium-changes-equilibrium/study-guide/k4H2NUGKbeoLxAMFx3F8) ## FAQs ### What topics are covered in AP Macro Unit 1? AP Macro Unit 1 covers 6 topics: Scarcity (1.1), Opportunity Cost and the Production Possibilities Curve (1.2), Comparative Advantage and Gains from Trade (1.3), Demand (1.4), Supply (1.5), and Market Equilibrium, Disequilibrium, and Changes in Equilibrium (1.6). These foundational concepts underpin everything else in the course. See the full topic breakdown at [AP Macro Unit 1](/ap-macro/unit-1). ### How much of the AP Macro exam is Unit 1? AP Macro Unit 1 makes up 5-10% of the AP exam. That's a smaller slice than later units, but the concepts here, including scarcity, opportunity cost, comparative advantage, and supply and demand, show up as background knowledge throughout the entire exam, so a shaky foundation will cost you points later. ### What's on the AP Macro Unit 1 progress check (MCQ and FRQ)? The AP Macro Unit 1 progress check includes MCQ and FRQ parts that draw from all 6 Unit 1 topics: Scarcity, Opportunity Cost and the Production Possibilities Curve, Comparative Advantage and Gains from Trade, Demand, Supply, and Market Equilibrium. MCQ questions typically ask you to interpret graphs or apply definitions, while the FRQ portion often asks you to draw or shift a production possibilities curve or explain a change in market equilibrium. Practice with matched questions at [AP Macro Unit 1](/ap-macro/unit-1). ### How do I practice AP Macro Unit 1 FRQs? AP Macro Unit 1 FRQs most often focus on opportunity cost calculations, production possibilities curve shifts, and changes in market equilibrium. To practice, work through questions that ask you to draw a correctly labeled PPC, identify comparative advantage from a table, or trace how a supply or demand shift changes equilibrium price and quantity. For each response, write out your reasoning in full sentences, since partial credit depends on it. Find practice FRQs at [AP Macro Unit 1](/ap-macro/unit-1). ### Where can I find AP Macro Unit 1 practice questions? The best place to find AP Macro Unit 1 practice questions, including multiple-choice and practice test sets, is [AP Macro Unit 1](/ap-macro/unit-1). You'll find MCQs covering scarcity, opportunity cost, the production possibilities curve, comparative advantage, and supply and demand, plus FRQ practice targeting market equilibrium and PPC analysis. ### How should I study AP Macro Unit 1? Start with scarcity and opportunity cost, since every other concept in the unit builds on those two ideas. Then work through the production possibilities curve until you can draw, label, and shift it from memory. Move to comparative advantage, practice identifying it from a data table, and then tackle supply and demand shifts before putting it all together with market equilibrium. A solid study plan looks like this: 1. Read and take notes on each of the 6 topics in order. 2. Draw every graph by hand at least twice. 3. Do a timed set of MCQs after each topic to catch gaps. 4. Write out one FRQ response per major concept (PPC, equilibrium shifts). All of this is organized at [AP Macro Unit 1](/ap-macro/unit-1). ### What graphs do I need to know for AP Macro Unit 1? AP Macro Unit 1 requires you to know two core graphs: the Production Possibilities Curve (PPC) and the supply and demand model. For the PPC, you need to draw it correctly labeled, identify points inside, on, and outside the curve, show economic growth by shifting it outward, and calculate opportunity cost from its slope. For supply and demand, you need to shift curves based on changes in determinants and identify the new equilibrium price and quantity. Both graphs appear on the progress check and in FRQs. ## Structured Data ```json {"@context":"https://schema.org","@type":"FAQPage","inLanguage":"en","mainEntity":[{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#what-topics-are-covered-in-ap-macro-unit-1","name":"What topics are covered in AP Macro Unit 1?","acceptedAnswer":{"@type":"Answer","text":"AP Macro Unit 1 covers 6 topics: Scarcity (1.1), Opportunity Cost and the Production Possibilities Curve (1.2), Comparative Advantage and Gains from Trade (1.3), Demand (1.4), Supply (1.5), and Market Equilibrium, Disequilibrium, and Changes in Equilibrium (1.6). These foundational concepts underpin everything else in the course. See the full topic breakdown at AP Macro Unit 1."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#how-much-of-the-ap-macro-exam-is-unit-1","name":"How much of the AP Macro exam is Unit 1?","acceptedAnswer":{"@type":"Answer","text":"AP Macro Unit 1 makes up 5-10% of the AP exam. That's a smaller slice than later units, but the concepts here, including scarcity, opportunity cost, comparative advantage, and supply and demand, show up as background knowledge throughout the entire exam, so a shaky foundation will cost you points later."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#whats-on-the-ap-macro-unit-1-progress-check-mcq-and-frq","name":"What's on the AP Macro Unit 1 progress check (MCQ and FRQ)?","acceptedAnswer":{"@type":"Answer","text":"The AP Macro Unit 1 progress check includes MCQ and FRQ parts that draw from all 6 Unit 1 topics: Scarcity, Opportunity Cost and the Production Possibilities Curve, Comparative Advantage and Gains from Trade, Demand, Supply, and Market Equilibrium. MCQ questions typically ask you to interpret graphs or apply definitions, while the FRQ portion often asks you to draw or shift a production possibilities curve or explain a change in market equilibrium. Practice with matched questions at AP Macro Unit 1."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#how-do-i-practice-ap-macro-unit-1-frqs","name":"How do I practice AP Macro Unit 1 FRQs?","acceptedAnswer":{"@type":"Answer","text":"AP Macro Unit 1 FRQs most often focus on opportunity cost calculations, production possibilities curve shifts, and changes in market equilibrium. To practice, work through questions that ask you to draw a correctly labeled PPC, identify comparative advantage from a table, or trace how a supply or demand shift changes equilibrium price and quantity. For each response, write out your reasoning in full sentences, since partial credit depends on it. Find practice FRQs at AP Macro Unit 1."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#where-can-i-find-ap-macro-unit-1-practice-questions","name":"Where can I find AP Macro Unit 1 practice questions?","acceptedAnswer":{"@type":"Answer","text":"The best place to find AP Macro Unit 1 practice questions, including multiple-choice and practice test sets, is AP Macro Unit 1. You'll find MCQs covering scarcity, opportunity cost, the production possibilities curve, comparative advantage, and supply and demand, plus FRQ practice targeting market equilibrium and PPC analysis."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#how-should-i-study-ap-macro-unit-1","name":"How should I study AP Macro Unit 1?","acceptedAnswer":{"@type":"Answer","text":"Start with scarcity and opportunity cost, since every other concept in the unit builds on those two ideas. Then work through the production possibilities curve until you can draw, label, and shift it from memory. Move to comparative advantage, practice identifying it from a data table, and then tackle supply and demand shifts before putting it all together with market equilibrium. A solid study plan looks like this: 1. Read and take notes on each of the 6 topics in order.\n2. Draw every graph by hand at least twice.\n3. Do a timed set of MCQs after each topic to catch gaps.\n4. Write out one FRQ response per major concept (PPC, equilibrium shifts). All of this is organized at AP Macro Unit 1."}},{"@type":"Question","@id":"https://fiveable.me/ap-macro/unit-1#what-graphs-do-i-need-to-know-for-ap-macro-unit-1","name":"What graphs do I need to know for AP Macro Unit 1?","acceptedAnswer":{"@type":"Answer","text":"AP Macro Unit 1 requires you to know two core graphs: the Production Possibilities Curve (PPC) and the supply and demand model. For the PPC, you need to draw it correctly labeled, identify points inside, on, and outside the curve, show economic growth by shifting it outward, and calculate opportunity cost from its slope. For supply and demand, you need to shift curves based on changes in determinants and identify the new equilibrium price and quantity. Both graphs appear on the progress check and in FRQs."}}]} ```