STEP 1 Set Up Your Study Program

1 What You Need to Know About the AP Economics Exams

2 How to Plan Your Time

STEP 2 Determine Your Test Readiness

3 Take Diagnostic Exams

Diagnostic Exam:AP Microeconomics

Diagnostic Exam:AP Macroeconomics

STEP 3 Develop Strategies for Success

4 How to Approach Each Question Type

Section Ⅰ:Multiple-Choice Questions

Section Ⅱ：Free-Response Questions

STEP 4 Review the Knowledge You Need to Score High

5 Fundamentals of Economic Analysis

Scarce Resources

Production Possibilities

Functions of Economic Systems

6 Demand,Supply,Market Equilibrium,and Welfare Analysis

Demand

Supply

Market Equilibrium

Welfare Analysis

7 Elasticity,Microeconomic Policy,and Consumer Theory

Elasticity

Microeconomic Policy and Applications of Elasticity

Consumer Choice

8 The Firm,Profit,and the Costs of Production

Firms,Opportunity Costs,and Profits

Production and Cost

9 Market Structures,Perfect Competition,Monopoly,and Things Between

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

10 Factor Markets

Factor Demand

Least-Cost Hiring of Multiple Inputs

Factor Supply and Market Equilibrium

Imperfect Competition in Product and Factor Markets

11 Public Goods,Externalities,and the Role of Government

Public Goods and Spillover Benefits

Pollution and Spillover Costs

Income Distribution and Tax Structures

12 Macroeconomic Measures of Performance

The Circular Flow Model

Accounting for Output and Income

Inflation and the Consumer Price Index

Unemployment

13 Consumption,Saving,Investment,and the Multiplier

Consumption and Saving

Investment

The Multiplier Effect

14 Aggregate Demand and Aggregate Supply

Aggregate Demand(AD)

Aggregate Supply(AS)

Macroeconomic Equilibrium

The Trade-Off Between Inflation and Unemployment

15 Fiscal Policy,Economic Growth,and Productivity

Expansionary and Contractionarv Fiscal Policy

Difficulties of Fiscal Policy

Economic Growth and Productivity

16 Money,Banking,and Monetary Policy

Money and Financial Assets

Fractional Reserve Banking and Money Creation

Monetary Policy

17 International Trade

Comparative Advantage and Gains from Trade

Balance of Payments

Foreign Exchange Rates

Trade Barriers

STEP 5 Build Your Test-Taking Confidence

AP Microeconomics Practice Exam 1

AP Macroeconomics Practice Exam 1

AP Microeconomics Practice Exam 2

AP Macroeconomics Practice Exam 2

Appendixes

Bibliography

Web Sites

Glossary

Important Formulas and Conditions