AP®︎ Microeconomics Unit 1: Notes & Study Guide
Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 1 of AP Microeconomics – Basic Econimics Concepts.
Unit 1: Basic Econimics Concepts
This unit introduces basic economic concepts like scarcity, opportunity cost, the production possibilities curve, and the fundamentals of marginal analysis.
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® Microeconomics curriculum.
Scarcity
Scarcity
- Scarcity and Why It Exists
- Trade-Offs and Opportunity Cost
- The Three Economic Questions
Resource Allocation and Economic Systems
Resource Allocation and Economic Systems
- The Three Economic Questions
- What an economic system is
- Types of economic systems
Production Possibilities Curve
Production Possibilities Curve
- What the Production Possibilities Curve Is
- Opportunity Cost and the Shape of the PPC
- Efficiency on the PPC
Comparative Advantage and Trade
Comparative Advantage and Trade
- Absolute Advantage and Comparative Advantage
- How to Calculate Opportunity Cost and Identify Advantage
- Specialization According to Comparative Advantage
Cost-Benefit Analysis
Cost-Benefit Analysis
- Opportunity cost and total economic cost
- Total benefits, total costs, and net benefits
- Marginal analysis and the MB = MC rule
Marginal Analysis and Consumer Choice
Marginal Analysis and Consumer Choice
- Marginal Analysis and the MB = MC Rule
- Utility and the Law of Diminishing Marginal Utility
- How Consumers Maximize Utility with a Budget Constraint
Notes
1 credit used · 5/5 remaining