AP Microeconomics
Understand the Principles of Individual Economic Decisions
AP Microeconomics introduces students to the principles of economics that apply to the functions of individual economic decision-makers. The course develops a deep understanding of product and factor markets, distributions of income, market failure, and the role of government.
Academic Level
College-Level
Subject Area
Economics
Course Rigor
Advanced
Governed By
College Board
Course Overview
What You Will Learn in This Course
Students learn about supply and demand, firm behavior, market structures, and the economics of public sector intervention. The course prepares students for college-level microeconomic analysis by focusing on the individual decision-makers within an economy. Participants study how consumers and producers interact in various market structures, ranging from perfect competition to monopolies. The curriculum covers the principles of marginal analysis and how these apply to cost, revenue, and profit-maximizing strategies. Students also examine the role of government in correcting market failures and the impact of taxes and subsidies on efficiency. By learning to graph and interpret economic data, students develop a rigorous framework for understanding market dynamics. This analytical foundation is vital for careers in business strategy, entrepreneurship, and corporate finance.
Course Overview
Why Choose This AP Course
This course builds foundational business skills and prepares students for careers in finance, corporate strategy, public policy, and entrepreneurship. By focusing on the individual units of the economy, students learn the precise logic behind consumer choice and firm production. This granular understanding of market dynamics is invaluable for anyone looking to start a business or manage corporate operations. The curriculum emphasizes marginal analysis and cost-benefit reasoning, which are the primary tools of modern business strategy. Participants learn to navigate different market structures and identify the impact of government intervention on efficiency. This course provides a rigorous analytical framework that is directly applicable to real-world financial decision-making. It is a vital prerequisite for success in elite business schools and competitive consulting careers.
Critical Thinking
Technical Skills
Problem Solving
Academic Growth
Colaboration
Career Readiness
Prerequisites
Prior Economics Experience
Previous exposure to basic economics is helpful but not mandatory
Recommended
Analytical Thinking
Ability to approach economic problems logically
Required
AP Macroeconomics
Provides useful background but is not a prerequisite
Optional
Algebra Proficiency
Strong foundation in algebraic concepts and reading graphs
Required
Key Learning Outcomes
Build graphing and charting skills
Analyze different market structures
Evaluate government intervention scenarios
Prepare for advanced business coursework
Develop proficiency in economic modeling
Master supply and demand concepts
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Course Framework
Structure & Assessment
Unit 1–6 covering basic economic concepts and microeconomic models
1
Multiple-choice questions testing economic principles and graphing
2
Free-response questions requiring model drawing and market analysis
3
Emphasis on applying economic concepts to individual and firm behaviors
4
Duration
Half academic year (75+ hours)
Scoring
Scale of 1–5 (3+ generally considered passing)
Grading Basis
Combination of multiple-choice and free-response sections
Strategies for Success
Syllabus
You'll study the foundations of microeconomic thinking, including how to evaluate decisions based on constraints and trade-offs and make rational economic choices.
Unit 1
Basic Economic Concepts
You'll learn the basis for understanding how markets work with an introduction to the supply and demand model.
Unit 2
Supply and Demand
You'll explore the factors that drive the behavior of companies and learn about the perfect competition model.
Unit 3
Production, Cost, and the Perfect Competition Model
You'll learn how imperfectly competitive markets work and how game theory comes into play in economic models.
Unit 4
Imperfect Competition
You'll learn how concepts such as supply and demand and marginal decision-making apply in the context of factor markets.
Unit 5
Factor Markets
You'll examine the conditions under which markets may fail and the effects of government intervention in markets.
Unit 6
Market Failure and the Role of Government
Strategies for Success
Study & Success Tips
Build graphing and charting skills
Tip 4
Analyze different market structures
Tip 3
Master supply and demand concepts
Tip 2
Develop proficiency in economic modeling
Tip 1
Prepare for advanced business coursework
Tip 6
Evaluate government intervention scenarios
Tip 5
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