Princeton Review AP Economics Micro & Macro Prep, 2023: 4 Practice Tests + Complete Content Review + Strategies & Techniques

by The Princeton Review

Overview

Make sure you’re studying with the most up-to-date prep materials! Look for the newest edition of this title, The Princeton Review AP Economics Micro & Macro Prep, 21st Edition (ISBN: 9780593516799, on-sale August 2023).

Publisher's Note: Products purchased from third-party sellers are not guaranteed by the publisher for quality or authenticity, and may not include access to online tests or materials included with the original product.

Product Details

ISBN-13:	9780593450741
Publisher:	Random House Children's Books
Publication date:	08/09/2022
Series:	College Test Preparation: AP
Pages:	336
Product dimensions:	8.40(w) x 10.70(h) x 0.90(d)

About the Author

The experts at The Princeton Review have been helping students, parents, and educators achieve the best results at every stage of the education process since 1981. The Princeton Review has helped millions succeed on standardized tests, and provides expert advice and instruction to help parents, teachers, students, and schools navigate the complexities of school admission. In addition to classroom courses in over 40 states and 20 countries, The Princeton Review also offers online and school-based courses, one-to-one and small-group tutoring as well as online services in both admission counseling and academic homework help.

Table of Contents

Get More (Free) Content viii

Part 1 Using This Book to Improve Your AP Score 1

Preview: Your Knowledge, Your Expectations 2

Your Guide to Using This Book 2

How to Begin 3

Part II About the AP Economics Exams 5

The Structure of the AP Economics Exams 6

How the AP Economics Exams Are Scored 6

Overview of Course Units and Big Ideas 8

How AP Exams Are Used 9

Other Resources 9

Designing Your Study Plan 10

Part III Test-Taking Strategies for the AP Economics Exams 11

1 How to Approach Multiple-Choice Questions 13

2 How to Approach Free-Response Questions 23

3 Using Time Effectively to Maximize Points 29

4 Pacing Drills 33

Part IV Content Review for the AP Economics Exams 45

Review of Microeconomics Concepts 47

5 Micro Unit 1: Basic Economics Concepts 49

Scarcity 51

Resource Allocation and Economic Systems 51

The Production Possibilities Curve 52

Comparative Advantage and Gains from Trade 55

Cost-Benefit Analysis 57

Marginal Analysis and Consumer Choice 57

Key Terms 59

Drill Questions 60

Summary 61

6 Micro Unit 2: Supply and Demand 63

Demand 64

Supply 66

Elasticity 72

Market Equilibrium, Disequilibrium, and Changes in Equilibrium 82

The Effects of Government Intervention in Markets 83

International Trade and Public Policy 87

Key Terms 89

Drill Questions 90

Summary 93

7 Micro Unit 3: Production, Cost, and the Perfect Competition Model 97

The Production Function 98

Short- and Long-Run Production Costs 104

Types of Profit 105

Profit Maximization 106

Perfect Competition 108

Key Terms 112

Drill Questions 113

Summary 115

8 Micro Unit 4: Imperfect Competition 117

Monopoly 118

Price Discrimination 120

Monopolistic Competition 121

Oligopoly and Game Theory 123

Key Terms 128

Drill Questions 129

Summary 131

9 Micro Units 5 and 6: Factor Markets, Market Failure, and the Role of Government 133

Factor Markets 134

Changes in Factor Demand and Factor Supply 136

Profit-maximizing Behavior in Perfectly Competitive Factor Markets 143

Manopsonistic Markets 145

Socially Efficient and Inefficient Market Outcomes 147

Externalities 148

Public and Private Goods 150

Income and Wealth Inequality 151

Key Terms 154

Drill Questions 155

Summary 156

10 Microeconomics Drill Questions: Answers and Explanations 159

Review of Macroeconomics Concepts 169

11 Macro Units 1 and 2: Basic Economics Concepts, Economic Indicators, and the Business Cycle 171

The Circular Flow and GDP 172

Unemployment 175

Price Indices and Inflation 176

Real vs Nominal GDP 177

Business Cycles 179

Key Terms 181

Drill Questions 182

Summary 183

12 Macro Unit 3: National Income and Price Determination 185

Aggregate Demand 186

Short-run and Long-run Aggregate Supply 188

Equilibrium and Changes in the Aggregate Demand-Aggregate Supply Model 193

Fiscal Policy 197

Key Terms 201

Drill Questions 202

Summary 204

13 Macro Unit 4: Financial Sector 207

Financial Assets 208

Definition, Measurement, and Functions of Money 208

Banking and the Expansion of the Money Supply 209

Monetary Policy 212

Key Terms 215

Drill Questions 216

Summary 217

14 Macro Unit 5: Long-Run Consequences of Stabilization Polices 219

The Phillips Curve 220

Money, Growth, and Inflation 223

Government Deficits and National Debt 223

Crowding Out 224

Economic Growth 225

Key Terms 226

Drill Questions 227

Summary 228

15 Macro Unit 6: Open Economy, International Trade, and Finance 231

Balance of Payments Accounts 232

Exchange Rates and the Foreign Exchange Market 233

Effects of Change in Policies and Economic Conditions of the Foreign Exchange Market 236

Changes in the Foreign Exchange Market and Net Exports 237

Real Interest Rates and International Capital Flows 238

Key Terms 243

Drill Questions 244

Summary 245

16 Macroeconomics Drill Questions: Answers and Explanations 247

Part V Practice Tests 253

17 Microeconomics Practice Test 1 255

18 Microeconomics Practice Test 1: Answers and Explanations 269

19 Macroeconomics Practice Test 1 281

20 Macroeconomics Practice Test 1: Answers and Explanations 301

Microeconomics Practice Test 2 online

Microeconomics Practice Test 2: Answers and Explanations online

Macroeconomics Practice Test 2 online

Macroeconomics Practice Test 2: Answers and Explanations online

Appendix: Formula Sheets 315