Description
AP® Microeconomics covers the scope and sequence requirements of a typical one-semester college-Microeconomics course. The text provides comprehensive coverage of economic principles, research, and impacts. AP® Microeconomics has been designed to meet and exceed the requirements of the College Board’s AP® Microeconomics Framework, while allowing significant flexibility for instructors.
Each section of the book also includes sections on AP® test preparation. Content requirements for AP® Microeconomics are prescribed in the College Board Publication Advanced Placement Course in Microeconomics, published by The College Board (http://ritter.tea.state.tx.us/rules/tac/chapter118/ch118b.html#118.13).
This open-education-resource instructional material by TEA is licensed under a Creative Commons Attribution 4.0 International Public License in accordance with Chapter 31 of the Texas Education Code.
Book Outline
- Introduction
- 1.1 What Is Economics, and Why Is It Important?
- 1.2 Microeconomics and Macroeconomics
- 1.3 How Economists Use Theories and Models to Understand Economic Issues
- 1.4 How Economies Can Be Organized: An Overview of Economic Systems
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Test Prep For AP® Courses
- Introduction to Choice in a World of Scarcity
- 2.1 How Individuals Make Choices Based on Their Budget Constraint
- 2.2 The Production Possibilities Frontier and Social Choices
- 2.3 Confronting Objections to the Economic Approach
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Demand and Supply
- 3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services
- 3.2 Shifts in Demand and Supply for Goods and Services
- 3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process
- 3.4 Price Ceilings and Price Floors
- 3.5 Demand, Supply and Efficiency
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Labor and Financial Markets
- 4.1 Demand and Supply at Work in Labor Markets
- 4.2 Demand and Supply in Financial Markets
- 4.3 The Market System as an Efficient Mechanism for Information
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Elasticity
- 5.1 Price Elasticity of Demand and Price Elasticity of Supply
- 5.2 Polar Cases of Elasticity and Constant Elasticity
- 5.3 Elasticity and Pricing
- 5.4 Elasticity in Areas Other Than Price
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Consumer Choices
- 6.1 Consumption Choices
- 6.2 How Changes in Income and Prices Affect Consumption Choices
- 6.3 Labor-Leisure Choices
- 6.4 Intertemporal Choices in Financial Capital Markets
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Cost and Industry Structure
- 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit
- 7.2 The Structure of Costs in the Short Run
- 7.3 The Structure of Costs in the Long Run
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Perfect Competition
- 8.1 Perfect Competition and Why It Matters
- 8.2 How Perfectly Competitive Firms Make Output Decisions
- 8.3 Entry and Exit Decisions in the Long Run
- 8.4 Efficiency in Perfectly Competitive Markets
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Monopoly and Antitrust Policy
- 11.1 Corporate Mergers
- 11.2 Regulating Anticompetitive Behavior
- 11.3 Regulating Natural Monopolies
- 11.4 The Great Deregulation Experiment
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Environmental Protection and Negative Externalities
- 12.1 The Economics of Pollution
- 12.2 Command-and-Control Regulation
- 12.3 Market-Oriented Environmental Tools
- 12.4 The Benefits and Costs of U.S. Environmental Laws
- 12.5 International Environmental Issues
- 12.6 The Trade-off Between Economic Output and Environmental Protection
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Positive Externalities and Public Goods
- 13.1 Why the Private Sector Underinvests in Innovation
- 13.2 How Governments Can Encourage Innovation
- 13.3 Public Goods
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Poverty and Economic Inequality
- 14.1 Drawing the Poverty Line
- 14.2 The Poverty Trap
- 14.3 The Safety Net
- 14.4 Income Inequality: Measurement and Causes
- 14.5 Government Policies to Reduce Income Inequality
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to International Trade
- 19.1 Absolute and Comparative Advantage
- 19.2 What Happens When a Country Has an Absolute Advantage in All Goods?
- 19.3 Intra-Industry Trade between Similar Economies
- 19.4 The Benefits of Reducing Barriers to International Trade
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses
- Introduction to Globalism and Protectionism
- 20.1 Protectionism: An Indirect Subsidy from Consumers to Producers
- 20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions
- 20.3 Arguments in Support of Restricting Imports
- 20.4 How Trade Policy Is Enacted: Globally, Regionally, and Nationally
- 20.5 The Trade-offs of Trade Policy
- Key Terms
- Key Concepts and Summary
- Self-Check Questions
- Review Questions
- Critical Thinking Questions
- Problems
- Test Prep For AP® Courses