AP Microeconomics Semester Exam Study guide
• 50 or so Multiple Choice Questions, 3 Free Response with graphs
• Reread Study Guide; Study quizzes; review handouts
• Review the performance goals on each of the Daily Lesson Plans
Terms:
§ Production possibility curve
§ economic theory and economic modeling
§ economic efficiency
§ comparative advantage
§ opportunity cost scarcity
§ definition of a market
§ law of demand, supply
§ determinants of demand, supply
§ changes in demand, supply
§ quantity changes in demand, supply
§ equilibrium rationing function
§ price elasticity of demand total revenue test
§ elasticity of supply
§ cross elasticity and income elasticity
§ price ceiling, price floor
§ income effect substitution effect
§ implicit, explicit costs
§ consumer and producer surplus
§ law of diminishing marginal utility
§ short run, long run economies of scale
§ Law of diminishing marginal returns
§ cost theory-total , average and marginal cost
§ market structure—pure competition (long and short run), monopoly (single price, regulated and price discrimination) , monopolistic competition (long and short run) and oligopoly (game theory and strategic thinking
§ MR=MC profit maximizing level of output
§ derived demand
§ resource pricing MRP=MRC
§ Wage determination (competitive and monosponistic)
§ Economic roles of government
§ Public vs. private good
§ positive and negative Externalities (MSB=MSC)