What You Need to Know About the AP Microeconomics Exam ‹ 7B. Public goods- Public versus private goods
- Provision of public goods
C. Public policy to promote competition - Antitrust policy
- Regulation
D. Income distribution - Equity
- Sources and measures of income inequality
Macroeconomics
Approximate percentage
Content Area for exam (multiple-choice)
I. Basic Economic Concepts 8–12%
A. Scarcity, choice, and opportunity costs
B. Production possibilities curve
C. Comparative advantage, specialization, and
exchange
D. Demand, supply, and market equilibrium
E. Macroeconomic issues: business cycle,
unemployment, inflation, growthII. Measurement of Economic Performance 12–16%
A. National income accounts- Circular flow
- Gross domestic product
- Components of gross domestic product
- Real versus nominal gross domestic product
B. Inflation measurement and adjustment - Price indices
- Nominal and real values
- Costs of inflation
C. Unemployment - Definition and measurement
- Types of unemployment
- Natural rate of unemployment
III. National Income and Price Determination 10–15%
A. Aggregate demand - Determinants of aggregate demand
- Multiplier and crowding-out effects
B. Aggregate supply - Short-run and long-run analyses
- Sticky versus flexible wages and prices
- Determinants of aggregate supply
C. Macroeconomic equilibrium - Real output and price level
- Short and long run
- Actual versus full-employment output
- Business cycle and economic fluctuations