Section outline

  • Course Information

    Go to section Course Information

    AP Microeconomics is an introductory college-level microeconomics course. Students cultivate their understanding of the principles that apply to the functions of individual economic decision-makers by using principles and models to describe economic situations and predict and explain outcomes with graphs, charts, and data as they explore concepts like scarcity and markets; costs, benefits, and marginal analysis; production choices and behavior; and market inefficiency and public policy.

    The AP Microeconomics framework is organized into six commonly taught units of study that provide one possible sequence for the course. As always, you have the flexibility to organize the course content as you like.

    Unit     Exam Weighting (Multiple-Choice Section)
    Unit 1: Basic Economic Concepts 12%–15%
    Unit 2: Supply and Demand 20%–25%
    Unit 3: Production, Cost, and the Perfect Competition Model  22%–25%
    Unit 4: Imperfect Competition 15%–22%
    Unit 5: Factor Markets 10%–13%
    Unit 6: Market Failure and the Role of Government 8%–13%

    Course Skills

    The AP Microeconomics framework included in the course and exam description outlines distinct skills that students should practice throughout the year—skills that will help them learn to think and act like economists.

    Skill     Description
    1. Principles and Models  Define economic principles and models.
    2. Interpretation  Explain given economic outcomes.
    3. Manipulation Determine outcomes of specific economic situations.
    4. Graphing and Visuals Model economic situations using graphs or visual representations.

       

  • UNIT 1: Basic Economic Concepts

    Go to section UNIT 1: Basic Economic Concepts
    Foundational Concepts

    To grasp the principles of economics, students must recognize that the scarcity of resources means individuals and societies are constantly faced with choices. Rational decision-making occurs “on the margin,” with people weighing the additional costs and benefits of each choice. The fundamental economic concepts introduced in this unit serve as the groundwork for more advanced studies of consumer and producer behavior that will be explored later in the course.

    Developing Course Skills

    •    1.A
    •    1.C
    •    1.D
    •    2.C
    •    4.A
    This unit is designed to give students a solid grasp of core economic ideas, necessary for applying these concepts in more challenging subsequent units. As many students are new to the discipline of economics, thinking like an economist—such as analyzing constraints, trade-offs, and making marginal decisions—can feel unfamiliar. Introducing simulations and real-life examples at an early stage helps students start developing these skills. For instance, participating in an activity where students consume successive units of a good and record the utility received from each one (refer to the sample activities for Unit 1 on p. 33) enables them to better comprehend marginal analysis and diminishing marginal utility. By directly engaging with these concepts, students are more likely to describe and apply them confidently as the course progresses.

    Preparing for the AP Exam

    Analyzing quantitative data and performing calculations are common challenges for students on the AP Exam, especially within consumer theory. While students may understand the concept of consumer optimization, applying it in numerical problems can be difficult. To address this, it is essential to first strengthen students’ conceptual understanding, then provide ample practice with numerical problems. Emphasize the importance of showing all steps when performing calculations throughout the course.
    Additionally, this unit introduces graphical models—an essential skill tested in the AP Exam’s free-response section. Begin modeling how to set up and label graphs correctly, and offer students regular opportunities to practice graph construction and to interpret information presented visually.

    Activities: 6