AP Microeconomics

Basic Econ Concepts

100

Define marginal utlity 

the change in total utility by consumer one additional unit of that good/service

200

Goods vs services 

Goods: are tangible objects that can be used/traded 

Service: an intangible economic activity offered as a product, directly satisfying consumer wants without producing a lasting asset

300

the 3 different types of economic systems 

1) command

2) market

3) mixed

400

Define factors that determine a PPC

1) Changes in the amount of resources in the economy 

2) Chnages in tech and productivity

3) Trade

500

Define terms of trade and the 2 different types of goods 

people split up the work, and provide each other with a good in return for another. It is also the rate at which one good can be exchanged for another (if the price of a good obtained from trade is less than the opportunity cost of producing it, trade is beneficial)

• Capital goods: goods that make consumer goods (ex. machinery)
• Consumer goods : goods that are consumed (ex. food)
• 
  

Supply & Demand

100

Supply vs demand 

Supply: different quantities of goods/services which sellers are willing and able to produce at a given price

Demand: the quantity which a consumer/buyer are willing and able to buy at different prices

200

Substitutes vs compliments  

• Substitutes : good/service that can be used in place of another, when price of one increases, consumers will buy more of the other (ex. coffee and tea)
• Complements : goods/services that are consumed together (ex. hamburgers and buns)

300

PEOD Equation

%∆Qd/%∆P

400

Midpoint formula 

Qd2-Qd1/(Q2d+Qd1)/2

500

Factors that shift supply

1) Resource costs & availability 

2) Other goods & services 

3) Tech

4)Taxes & subsides 

5) Expectations

6) Number of sellers 

Quotas

100

what is a quota 

regulatory limits set by governments on the amount of a particular good that can be imported or exported during a specific time frame

200

why do governments impose quotas 

protecting domestic industries, fostering trade negotiations, and ensuring national security

300

compare and contrast quotas and tariffs 

Tariffs are taxes that governments place on imported goods of a specific type. Quotas are import limits that prevent more than a set amount of a specific good from being imported into a country

400

Price Ceilings vs Price Floors 

A price ceiling keeps a price from rising above a certain level—the “ceiling”.

A price floor keeps a price from falling below a certain level—the “floor”

500

How do you calculate DWL on a S&D curve

 1/2 * (P2 - P1) * (Q1 - Q2)

Misc

100

The third planet from the sun 

Earth

200

Does Mr. A have glasses

yes

300

When was Toy Story released

1995

400

the 2025 AP exam date 

May 5 2025 

500

Whas the heaviest thing on periodic table by atomic weight 

oganesson (Og)