Name: 🌶️ AP Micro Cram Review: Unit 1: Basic Economic Concepts
Uploaded: 2021-03-05T00:00:00.000Z
Description: Unit 1: Basic Economic Concepts

AP Microeconomics

Build a strong foundation in unit 1 of AP Microeconomics. We cover the important vocabulary, fundamental skills, and basic economic concepts you need to master for the exam, such as the production possibilities curve (aka the PPC). Review and practice with our signature helpful study guides and useful resources.

Unit 1 – Basic Economic Concepts

Master supply and demand in these Unit 2 AP Micro resources. We cover the important vocabulary, skills, and concepts you need to understand for the exam. You'll review elasticity, market equilibrium, and policy. With these useful resources and practice, you'll feel confident and prepared to conquer the test!

Unit 2 – Supply & Demand

Don't miss out on these useful resources for production, cost, and the perfecet competition model. We cover the important vocabulary, skills, and concepts you need to understand and master for the exam. With these helpful study guides, resources, and practice, you'll feel confident and prepared to ace unit 3 of AP Micro!

Unit 3 – Production, Cost, & the Perfect Competition Model

Get ready to conquer unit 4 of AP Microeconomics—imperfect competition! Brush up on vocab and concepts relating to monopolies, price discrimination, oligopolies, and game theory, to clear up any weak spots you may have!

Unit 4 – Imperfect Competition

Check out these resources for factor markets for unit 5 of AP Microeconomics with guides reviewing vocab and key concepts! Review everything from factor supply and demand and profit-maximizing to monopsony markets.

Unit 5 – Factor Markets

Wrap up your AP Micro studies with unit 6—market failure and role of government! We cover the important vocabulary, skills, and concepts you need to understand and master. With these helpful study guides, useful resources, and practice all about the markets and how government affects them, you'll be prepared to conquer the exam!

Unit 6 – Market Failure & the Role of Government

This is all you need to know about the AP Microeconomics exam. We'll cover how to manage the multiple choice questions (MCQs) and how to write great FRQs. Review exam logistics, types of questions (such as table questions), how to draw graphs, helpful tips, and practice some sample questions

Exam Skills

AP Cram Sessions 2021

Previous Exam Prep

Study Tools

Unit 1 Overview: Basic Economic Concepts

1.1: Scarcity

Microeconomics vs. Macroeconomics

Factors of Production

Opportunity Costs and Trade-offs

1.2: Resource Allocation and Economic Systems

Three Economic Questions

Types of Economic Systems

1.3: Production Possibilities Curve (PPC)

Introduction to the Production Possibilities Curve (PPC)

Constant Opportunity Cost vs. Increasing Opportunity Cost

Shifters of the Production Possibilities Curve (PPC)

1.4: Comparative Advantage and Trade

Key Terms

Introduction

Output Problems

Input Problems

1.5: Cost-Benefit Analysis

Two Types of Costs

Sample Questions

1.6: Marginal Analysis and Consumer Choice

The Rules for Utility Maximization

Unit 1: Basic Economic Concepts

Scarcity Leads to Choices

Opportunity Cost and Trade Offs

Examples of Opportunity Costs and Trade-Offs

Basic Economic Concepts: Scarcity

What goods and services will be produced?

How will goods and services be produced?

For whom will the goods and services be produced?

What is an Economic System?

Traditional Economies

Centrally-Planned (Command) Economies

Market Economies

Mixed Economies

Resource Allocation and Economic Systems

Summary So Far


What Are "Production Possibilities"?

📈 Introduction to the Production Possibilities Curve (PPC)

⚙️ Efficiency and the PPC

🧈 Opportunity Costs and the PPC

Increasing and Constant Opportunity Cost

💰 Economic Growth

Production Possibilities Curve (PPC)

What are Absolute and Comparative Advantage?

Absolute and Comparative Advantage on the AP Exam

Comparative Advantage and Trade

Explicit and Implicit Costs Costs

Explicit Costs

Implicit Costs

Marginal Benefit and Marginal Cost

The Law of Diminishing Marginal Utility

The Cost-Benefit Maximizing Principle

Question 1

Question 2

Question 3

Question 4

Cost-Benefit Analysis

Rules for Utility Maximization

Steps for working these problems

Why Is Utility Maximized When MU1/P1 = MU2/P2? 

Question 2


Law of Diminishing Marginal Utility








Marginal Analysis and Consumer Choice

Unit 2 Overview: Supply and Demand

Unit 2.1: Demand

Unit 2.2: Supply

Unit 2.3: Price Elasticity of Demand

Unit 2.4: Price Elasticity of Supply

Unit 2.5: Other Elasticities

Unit 2.6: Market Equilibrium and Consumer and Producer Surplus

Unit 2.7: Market Disequilibrium and Changes in Equilibrium

Unit 2.8: The Effects of Government Intervention in Markets

Unit 2.9: International Trade and Public Policy

What is Demand?

The Law of Demand

📉 Graphing Demand

Differentiating Demand and Quantity Demanded

Shifting Demand

Demand

What is Supply?

The Law of Supply

The Supply Curve

Determinants of Supply

Supply

What is Price Elasticity of Demand (PED)?

Calculating Price Elasticity of Demand

Types of Elasticity

Perfectly Inelastic Demand

Relatively Inelastic Demand

Unit Elasticity

Relatively Elastic Demand

Perfectly Elastic Demand

The Total Revenue Test

Price Elasticity of Demand

What is Price Elasticity of Supply (PES)?

Calculating Price Elasticity of Supply

Types of Elasticity of Supply

Perfectly Inelastic Supply

Relatively Inelastic Supply

Unit Elastic Supply

Relatively Elastic Supply

Perfectly Elastic Supply

Price Elasticity of Supply

Other Types of Elasticity

Income Elasticity of Demand

Cross-Price Elasticity of Demand

Other Elasticities

What is Equilibrium in a Market?

Consumer Surplus

Producer Surplus

Market Equilibrium and Consumer and Producer Surplus

Equilibrium and Disequilibrium

Shortages and Surpluses

Visualizing Shortages and Surpluses

Adjustment in the Long Run

Consumer Surplus, Producer Surplus, and Deadweight Loss

Changes in Market Equilibrium

Double-Shift Problems

Market Disequilibrium and Changes in Equilibrium

Markets and the Government

Price Controls: Ceilings and Floors

Price Ceilings

Price Floors

Non-Effective Price Controls

Excise Taxes and Tax Incidence

Excise vs. Lump-Sum Taxes

Graphing Excise Taxes

Understanding Tax Incidence

The Effects of Government Intervention in Markets

Quotas

Tariffs

The Graph Before a Tariff

The Graph After a Tariff

International Trade and Public Policy

Unit 3 Overview: Production, Cost, and the Perfect Competition Model

Unit 3.1: The Production Function

Unit 3.2: Short-Run Production Costs

Unit 3.3: Long-Run Production Costs

Unit 3.4: Types of Profit

Unit 3.5: Profit Maximization

Unit 3.6: Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market

Unit 3.7: Perfect Competition

Production, Cost, and the Perfect Competition Model (22%-25%)

Introduction to Unit 3

What is Production?

Costs of Production and Revenue

Measuring Productivity

The Law of Diminishing Marginal Product

Returns to Scale

The Production Function

What is the Short Run?

Fixed Costs, Variable Costs, and Total Costs

Revenue and Profit

Average and Marginal Cost Curves

Example Table and Graphs

Short-Run Production Costs

Resources in the Long-Run

Economies of Scale

Long-Run Production Costs

The Three Types of Profit

Types of Profit

The Theory of the Firm

MR = MC: The Profit Maximizing Rule

Example

Profit Maximization

Entering and Exiting a Market

The Shut-Down Rule

Long-Run Decisions to Enter or Exit the Market

What Happens To The Market When Firms Enter or Exit?

Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market

🌶️ AP Micro Cram Review: Unit 1: Basic Economic Concepts

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🌶️ AP Micro Cram Review: Unit 1: Basic Economic Concepts

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