Unit Content

This section outlines the key concepts and skills covered in this unit, focusing on the topics and question types most commonly tested on the AP Microeconomics exam.

AP Microeconomics Content

How units are structured

Each unit builds understanding through clear explanations and targeted practice.
It includes a key concept and definition sheet, focused practice on key topics, and AP-style MCQs and FRQs to help students earn points.

Unit 1: Basic Economic Concepts

Scarcity, choice, and opportunity cost
Production Possibilities Curve (PPC) analysis
Positive vs. normative economics and economic system

Unit 2: Demand and Supply

Demand and supply fundamentals
Market equilibrium and elasticity
Double-shift rule and market changes

Unit 3: Production Cost and Perfect Competition

Production and cost concepts (TP, MP, MC, ATC)
Profit maximization and shutdown decisions
Perfect competition in the short run and long run

Unit 4: Imperfect Competition

Monopoly and monopolistic competition models
Oligopoly and game theory analysis
Profit maximization, efficiency, and market outcomes

Unit 5: Factor Markets

Derived demand for labor
Marginal revenue product (MRP = MRC)
Wage determination and labor market shifts

Unit 6: Market Failure and Government

Externalities and market failure
Taxes, subsidies, and government intervention
Public goods, common resources, and efficiency