Download AP Macroeconomics - Princeton High School

AP Macroeconomics
Test on Sections 1 and 2 (Modules 1-8)
Monday, October 17, 2016
PLEASE BRING A #2 PENCIL WITH YOU FOR THE MULTIPLE CHOICE
QUESTIONS. There will be 35 multiple-choice questions and 1 problem on the
test. For the problem, know how to evaluate the effect on equilibrium price and
quantity caused by a change in supply and/or demand. Make sure you can
identify the non-price determinants of supply and demand.
Section 1
Module 1:
 Macroeconomics vs Microeconomics
 Scarce economic resources
 Opportunity cost
Module 2:
 Economic Model
 Business Cycle
 Inflation
 Recession
Module 3:
 Production Possibilities Curve
 Efficiency
 Increasing Opportunity Cost
Module 4:
 Comparative Advantage (only a couple of questions – not much
emphasis on this).
Section 2 (Modules 5-7)
1. Definitions:
a. Law of Demand
b. Law of Supply
2. Know how to distinguish between:
a change in quantity supplied or demanded
cause : change in price
effect: movement along the same supply or demand curve.
and a change in supply or demand
cause : change in a non- price determinant
effect: shift in the supply or demand curve.
Know what the non-price determinants of supply and demand are and how they
affect the supply and demand curve (listed on pgs.56 and 65 and handout on
supply and demand passed out in class
3. Understand how shortages drive prices up, surpluses drive prices down.
4. Know how to determine the change in equilibrium price and quantity due to a
change in demand and or supply.
Module 8:
Questions about price floors and ceilings will be limited to:
 Price floors are price controls established by the government. They are
a minimum price to protect the seller, set above the equilibrium price.
They create permanent surpluses.
 Price ceilings are created as a maximum price to protect the consumer
from equilibrium prices that are too high and create permanent
shortages.