AP®︎ Macroeconomics Unit 1: Notes & Study Guide
Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 1 of AP Macroeconomics – Basic Economic Concepts.
Unit 1: Basic Economic Concepts
This unit introduces foundational economic concepts such as scarcity, opportunity cost, the PPC, and comparative advantage to build the basis for macroeconomic thinking.
Begin with Topic 1.1: ScarcityTo review Unit 1, go through each of the 6 topics below.
Everything you actually need to know for your Unit 1 test, pulled directly from the AP® Macroeconomics curriculum.
Scarcity
Scarcity
- Scarcity and the Economic Problem
- The Four Factors of Production
- Trade-Offs and Opportunity Cost
Opportunity Cost and the Production Possibilities Curve (PPC)
Opportunity Cost and the Production Possibilities Curve (PPC)
- What the Production Possibilities Curve Is
- Opportunity Cost and Tradeoffs on the PPC
- Efficiency, Inefficiency, and Unattainable Points
Comparative Advantage and Gains from Trade
Comparative Advantage and Gains from Trade
- Absolute Advantage vs Comparative Advantage
- How to Find Absolute and Comparative Advantage from Data
- Specialization and Gains from Trade
Demand
Demand
- What Demand Is and What the Demand Curve Shows
- Demand vs. Quantity Demanded
- Determinants of Demand
Market Equilibrium, Disequilibrium, and Changes in Equilibrium
Market Equilibrium, Disequilibrium, and Changes in Equilibrium
- Market Equilibrium
- Disequilibrium Surpluses and Shortages
- How Shifts Create a New Equilibrium
Notes
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