AP MICROECONOMICS

Have you ever noticed how prices change on online shopping sites based on the time or day? Or wondered why the phrase “time is money” is so common? In AP Microeconomics, you’ll dive into the principles of economics that explain the decisions made by individuals and businesses. You’ll explore key concepts like supply and demand, elasticity, and market structures to develop a deeper understanding of how economic choices influence our world.

Course Overview

AP Microeconomics is a college-level course that introduces students to the fundamental principles of economics, focusing on the behavior of individual economic decision-makers. The course covers the workings of product and factor markets, income distribution, market failures, and the government’s role in enhancing economic efficiency and equity. Students will learn to interpret and utilize graphs, charts, and data to analyze and explain various economic concepts.

College Course Equivalent

AP Microeconomics corresponds to a one-semester introductory college course in economics.

Prerequisites

There are no prerequisites for AP Microeconomics. However, students should be comfortable reading college-level textbooks and have a basic understanding of math and graphing.

Course Content

This table summarizes the major topics covered in each unit and the percentage of the exam score each unit represents:

The course content is divided into six units that follow a logical sequence commonly found in college courses and textbooks. These units are designed to align with the weighting of the multiple-choice section of the AP Exam.
The six units in AP Microeconomics and their corresponding exam weightings are provided below. To assist with teaching the required content and administering Personal Progress Checks, pacing recommendations are also available at the unit level and in the Course at a Glance.

These pacing guidelines assume a class schedule of five days a week, with 45-minute sessions, totaling approximately 70 instructional days per semester. While these recommendations can aid in planning, teachers are encouraged to adjust the pacing according to their students’ needs, alternate schedules (e.g., block scheduling), or their school’s academic calendar.

Unit	Description	Topics	Exam Weight
Unit 1: Basic Economic Concepts	Study the foundations of microeconomic thinking, including evaluating decisions based on constraints, trade-offs, and making rational choices.	– Scarcity – Resource allocation and economic systems – The Production Possibilities Curve – Comparative advantage and gains from trade – Cost-benefit analysis – Marginal analysis and consumer choice	12%–15%
Unit 2: Supply and Demand	Learn the basics of how markets function through the supply and demand model.	– Demand – Supply – Elasticity – Market equilibrium, disequilibrium, and changes in equilibrium – Government intervention in markets – International trade and public policy	20%–25%
Unit 3: Production, Cost, and the Perfect Competition Model	Explore the behavior of companies and the perfect competition model.	– The production function – Short- and long-run production costs – Types of profit – Profit maximization – Perfect competition	22%–25%
Unit 4: Imperfect Competition	Learn about imperfect competition and how game theory applies to economic models.	– Monopoly – Price discrimination – Monopolistic competition – Oligopoly and game theory	15%–22%
Unit 5: Factor Markets	Apply supply, demand, and marginal decision-making concepts in the context of factor markets.	– Introduction to factor markets – Changes in factor demand and supply – Profit-maximizing in competitive factor markets – Monopsonistic markets	10%–13%
Unit 6: Market Failure and the Role of Government	Examine the conditions for market failure and the role of government intervention.	– Socially efficient and inefficient market outcomes – Externalities – Public and private goods – Government intervention in various market structures – Income and wealth inequality	8%–13%

AP Microeconomics Skills

Skill Category	Description	Skills
1. Principles and Models	Define and describe economic principles and models.	– 1.A Describe economic concepts, principles, or models. – 1.B Identify an economic concept, principle, or model from an example. – 1.C Identify an economic concept, principle, or model using quantitative data or calculations. – 1.D Describe similarities, differences, and limitations of economic concepts, principles, or models.
2. Interpretation	Explain how specific economic outcomes occur based on economic principles or models.	– 2.A Explain how a specific economic outcome occurs or what action should be taken to achieve a desired outcome. – 2.B Explain how a specific outcome occurs when multiple contributing variables are present, or what multiple actions should be taken to achieve the outcome. – 2.C Interpret a specific economic outcome using quantitative data or calculations.
3. Manipulation	Determine outcomes in specific economic situations using models and principles.	– 3.A Determine the outcome of an economic situation using concepts, principles, or models. – 3.B Determine the effects of one or more changes on other economic markets. – 3.C Determine the effects of a change in an economic situation using quantitative data or calculations.
4. Graphing and Visuals	Represent economic situations using graphs or visual models.	– 4.A Draw an accurately labeled graph or visual to represent an economic model or market. – 4.B Demonstrate your understanding of a specific economic situation on an accurately labeled graph or visual. – 4.C Demonstrate the effect of a change in an economic situation on an accurately labeled graph or visual.

Big Ideas

The big ideas form the core foundation of the course, helping students make meaningful connections between different concepts. These ideas, often abstract themes, are interwoven throughout the course. By revisiting them in various contexts, students develop a deeper understanding of key economic principles. Below are the big ideas of the course, along with a brief description of each:

BIG IDEA 1: Scarcity and Markets (MKT)
Limited resources and unlimited wants create the need for choices. In a market economy, the decisions made by buyers and sellers set market prices and influence how scarce resources are allocated.

BIG IDEA 2: Costs, Benefits, and Marginal Analysis (CBA)
Every decision involves trade-offs. Making the best decisions requires assessing the additional costs and benefits of different actions.

BIG IDEA 3: Production Choices and Behavior (PRD)
Firms aim to minimize costs and maximize profits, which shapes their production choices in both the short run and the long run.

BIG IDEA 4: Market Inefficiency and Public Policy (POL)
Private markets do not always allocate resources efficiently. Well-designed public policies can help improve both efficiency and equity in the economy.

Spiraling the Big Ideas

The table below shows how the Big Ideas spiral across different units in the course.

Here is a revised version of the table showing how the big ideas are integrated across the different units:

Big Ideas	Unit 1 Basic Economic Concepts	Unit 2 Supply and Demand	Unit 3 Production, Cost, and the Perfect Competition Model	Unit 4 Imperfect Competition	Unit 5 Factor Markets	Unit 6 Market Failure and the Role of Government
Scarcity and Markets (MKT)	✔	✔
Costs, Benefits, and Marginal Analysis (CBA)	✔	✔	✔		✔
Production Choices and Behavior (PRD)			✔	✔
Market Inefficiency and Public Policy (POL)		✔		✔		✔

This table demonstrates how the major concepts of AP Microeconomics (Big Ideas) are revisited and reinforced throughout the different units of the course.

AP Microeconomics Exam

The AP Microeconomics Exam evaluates students’ understanding of the skills and learning objectives outlined in the course framework. The exam lasts 2 hours and 10 minutes and consists of 60 multiple-choice questions and 3 free-response questions. Starting with the 2022–23 school year (spring 2023 exam), students are permitted to use a four-function calculator during both sections of the exam. The exam details, including the weighting and timing, are as follows:

Section	Question Type	Number of Questions	Exam Weighting	Timing
I	Multiple-choice questions	60	66.65%	70 minutes
II	Free-response questions	3	33.35%	60 minutes (including a 10-minute reading period)
	– Question 1: Long (10 points)
	– Question 2: Short (5 points)
	– Question 3: Short (5 points)

The exam covers content from the following big ideas:

1. Scarcity and Markets
2. Costs, Benefits, and Marginal Analysis
3. Production Choices and Behavior
4. Market Inefficiency and Public Policy

How Student Learning Is Assessed on the AP Exam

The AP Economics skills are assessed in the AP Exam as follows:

Section I: Multiple-Choice

Skill Categories	Description	Weighting in Multiple-Choice
1: Principles and Models	30–42% of the multiple-choice questions evaluate students’ ability to define economic principles or models. Students will describe and compare economic concepts, principles, and models, and identify examples illustrating these concepts.	30–42%
Numerical Analysis	Skills from Categories 1, 2, and 3 involve analyzing numbers or performing calculations. This includes identifying economic concepts (Skill 1.C), explaining outcomes (Skill 2.C), and determining the effects of changes (Skill 3.C).	20–30% of the total multiple-choice questions include numerical analysis or calculations.
2: Interpretation	37–47% of the multiple-choice questions assess students’ ability to explain given economic outcomes. Students must explain how a specific economic outcome occurs, considering contributing variables, or what actions should be taken to achieve the outcome.	37–47%
3: Manipulation	16–25% of the multiple-choice questions test students’ ability to determine the outcomes of specific economic situations using economic concepts, principles, or models, and to assess the effects of changes on other economic markets.	16–25%
4: Graphing and Visuals	Skill Category 4 is not directly tested in the multiple-choice section, as it involves drawing graphs or visuals, which are assessed in the free-response section. However, students will need to interpret graphs or visual representations provided in the multiple-choice questions.	N/A in Multiple-Choice

Section II: Free-Response

All four skill categories are assessed through the three free-response questions, focusing on four distinct task types:

1.Make Assertions About Economic Concepts, Principles, Models, Outcomes, and/or Effects
This task assesses skills from Categories 1, 2, and 3, and contributes 10–20% of the total points in the free-response section.

2.Explain Economic Concepts, Principles, Models, Outcomes, and/or Effects
This task also evaluates skills from Categories 1, 2, and 3, and accounts for 25–35% of the total points in the free-response section.

3.Perform Numerical Analysis
This task assesses students’ ability to make assertions requiring numerical analysis or perform calculations. It tests skills in Categories 1, 2, and 3, and contributes 15–30% of the total points in the free-response section.

4.Create Graphs or Visual Representations
This task focuses on Skill Category 4 (Graphing and Visuals) and makes up 30–50% of the total points in the free-response section. It requires students to:
Draw an accurately labeled graph or visual to represent an economic model or market (Skill 4.A)
Demonstrate an understanding of a specific economic situation on an accurately labeled graph or visual (Skill 4.B)
Show the effect of a change in an economic situation on an accurately labeled graph or visual (Skill 4.C)

Task Verbs Used in Free-Response Questions

The following task verbs are frequently used in AP Economics free-response questions:

• Identify: Respond to questions like “What?” or “Which?” by providing specific information about a topic without further elaboration or explanation.
• Explain: Provide details on how or why a particular relationship, pattern, situation, or outcome occurs, supported by evidence and reasoning. Graphs and symbols may be included as part of the explanation.
• Calculate: Perform the necessary mathematical steps to reach a final answer. Showing your work is required.
• Draw a Correctly Labeled: Create a graph or visual representation that demonstrates or explains relationships or phenomena. Correct labels are required.
• Show/Label/Plot/Indicate: Represent an economic scenario on a graph or visual representation, clearly labeling all axes and curves, and indicating directional changes where applicable.

Give Our Students an Edge with AP Learning

In the 2024 AP exams, students from Amazing Education in the Greater Vancouver area were predominantly from the Vancouver, West Vancouver, Richmond, Burnaby, South Surrey, and Langley school districts. This included students from well-known private and public schools that offer AP and IB programs, as well as high school students from schools that do not offer AP and IB programs. These students studied diligently, and under the meticulous guidance of Amazing Education’s many perfect-score AP teachers, they achieved an overall 98% high pass rate with perfect AP exam scores.