5 Steps to a 5: AP Microeconomics 2021

by Eric R. Dodge

Overview

MATCHES THE LATEST EXAM!

In this hybrid year, let us supplement your AP classroom experience with this easy-to-follow study guide!

The immensely popular 5 Steps to a 5 AP Microeconomics guide has been updated for the 2020-21 school year and now contains:

• 4 full-length practice exams (2 in the book and 2 online) that reflect the latest exam
• Up-to-Date Resources for COVID 19 Exam Disruption
• Access to a robust online platform
• Comprehensive overview of the AP Microeconomics exam format
• Hundreds of practice exercises with thorough answer explanations
• Review material and proven strategies specific to each section of the test
• A self-guided study plan including flashcards, games, and more online

Product Details

ISBN-13:	9781260467062
Publisher:	McGraw-Hill Professional Publishing
Publication date:	10/02/2020
Pages:	240
Product dimensions:	10.70(w) x 8.30(h) x 0.40(d)

About the Author

Eric Dodge is a professor of economics and chair of the Department of Economics and Business Administration at Hanover College in Hanover, Indiana.

Table of Contents

Preface v

Acknowledgments vii

About the Author ix

Introduction: The Five-Step Program xi

Step 1 Set Up Your Study Program

1 What You Need to Know About the AP Microeconomics Exam 3

Background Information 3

Some Frequently Asked Questions About the AP Economics Exams 4

2 How to Plan Your Time 11

Three Approaches to Preparing for AP Exams 11

Calendar for Each Plan 13

Step 2 Determine Your Test Readiness

3 Take the Diagnostic Exam 19

Diagnostic Exam: AP Microeconomics 23

Step 3 Develop Strategies for Success

4 How to Approach Each Question Type 33

Section I Multiple-Choice Questions 33

Section II Free-Response Questions 36

Step 4 Review the Knowledge You Need to Score High

5 Fundamentals of Economic Analysis 41

5.1 Scarce Resources 42

5.2 Production Possibilities 46

5.3 Functions of Economic Systems 52

6 Demand, Supply, Market Equilibrium, and Welfare Analysis 57

6.1 Demand 57

6.2 Supply 63

6.3 Market Equilibrium 66

6.4 Welfare Analysis 71

7 Elasticity, Microeconomic Policy, and Consumer Theory 76

7.1 Elasticity 77

7.2 Microeconomic Policy and Applications of Elasticity 85

7.3 Trade Barriers 93

7.4 Consumer Choice 95

8 The Firm, Profit, and the Costs of Production 104

8.1 Firms, Opportunity Costs, and Profits 105

8.2 Production and Cost 106

9 Market Structures, Perfect Competition, Monopoly, and Things Between 119

9.1 Perfect Competition 120

9.2 Monopoly 130

9.3 Monopolistic Competition 135

9.4 Oligopoly 137

10 Factor Markets 144

10.1 Factor Demand 145

10.2 Least-Cost Hiring of Multiple Inputs 149

10.3 Factor Supply and Market Equilibrium 151

10.4 Imperfect Competition in Product and Factor Markets 153

11 Public Goods, Externalities, and the Role of Government 157

11.1 Public Goods and Spillover Benefits 158

11.2 Pollution and Spillover Costs 160

11.3 Income Distribution and Tax Structures 162

Step 5 Build Your Test-Taking Confidence

AP Microeconomics Practice Exam 1 171

AP Microeconomics Practice Exam 2 191

Appendixes 211

Further Reading 213

Websites 214

Glossary 215

Important Formulas and Conditions 220