Download Topic Priority Checklist

AP MICRO Priority Checklist
Use the following checklist to help you prioritize for review:
Topics
Scarcity (A)
Opportunity Costs (A)
Production Possibilities Curve (B)
Comparative Advantage (C)
Specialization (C)
Economic Systems (D)
Demand (D)
Property rights (E)
Role of incentives (E)
Marginal analysis (F)
Market Equilibrium (G)
Determinants of supply (H)
Determinants of demand (H)
Price controls (I)
Quantity controls (I)
Elasticity of demand(J)
Price elasticity (J.i)
Income elasticity (J.i)
Cross-price elasticity (J.i)
Consumer surplus (K)
Producer surplus (K)
Allocative efficiency (K)
Tax incidence (L)
Deadweight loss (L)
Total utility (M)
Marginal utility (M)
Utility maximization rule (N)
Individual and market demand curves (O)
Income effect (P)
Substitution effect (P)
Short-run production function (Q)
Long-run production function (Q)
Marginal product (R)
Diminishing returns (R)
Short-run costs (S)
Long-run costs (T)
Economies of scale (T)
Productive efficiency (U)
Cost minimization (U)
Accounting profit (W.i)
Economic profit (W.i)
Normal profit (W.ii)
Profit-maximization rule (W.iii)
Perfect Competition (X)
Profit maximization in perfect competition (X.i)
Short-run supply in perfect competition (X.ii)
Shutdown point in perfect competition (X.ii)
Behavior of perfectly competitive firms and markets in the short
run (X.iii)
Behavior of perfectly competitive firms and markets in the long
run (X.iii)
Efficiency in perfect competition (X.iv)
Monopoly (Y)
Sources of market power (Y.i)
Confidence level: Which AP score would you earn for
this topic?
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Profit maximization (Y.ii)
Inefficiency (Y.iii)
Price discrimination (Y.iv)
Natural monopoly (Y.v)
Oligopoly (Z)
Cullusion (Z.i)
Cartels (Z.i)
Game theory (Z.ii)
Dominant strategy (Z.iii)
Nash equilibrium (Z.iv)
Monopolistic competition (AA)
Product differentiation (AA.i)
Derived Factor Demand (A2)
Marginal revenue product (B2)
Hiring decisions in the markets for labor and capital (C2)
D2. Market distribution of income (D2)
Externalities (D3)
Marginal social benefit and marginal social cost (D3.i)
Positive externalities (D3.ii)
Negative externalities (D3.iii)
Remedies (D3.iv)
Public goods (E2)
Public versus private goods (E2.i)
Provision of public goods (E2.ii)
Public policy to promote competition (F2)
Antitrust policy (F2.i)
Regulation (F2.ii)
Income distribution (G2)
Equity (G2.i)
Sources and measures of income inequality (H2)
Skills
1. Define the science of economics.
2. Distinguish between opportunity cost, scarcity, and tradeoffs.
3. Distinguish between macroeconomics and microeconomics.
4. Make a distinction between positive economics and normative economics.
5. List the three basic economic questions.
6. Define comparative advantage and specialization and benefits of
exchange.
7. Use a production possibilities curve to demonstrate opportunity cost and
growth.
8. List the determinants of demand and supply.
9. Recognize which factors will cause demand curves or supply curves to
shift.
10. Distinguish between changes in quantity demanded and a change in
demand.
11. Distinguish between changes in quantity supplied and a change in supply.
12. Determine equilibrium using a demand/supply graph, and show the effects
on price and quantity when equilibrium changes.
13. Distinguish between a normal and an inferior good.
Confidence level: What score would you
give your mastery of this topic, using the AP
scale?
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Skills
Confidence level: What score would you
give your mastery of this topic, using the AP
scale?
1
14. Distinguish between a substitute and a complementary good.
15. Predict the effect of an effective price ceiling or floor in a market.
16. Calculate elasticity using the midpoint formula.
17. Use demand-and-supply graphs to show the effect of differences in
elasticity.
18. Define the law of diminishing marginal utility.
19. Use the income effect and the substitution effect to explain the downsloping demand curve.
20. Given a graph, identify/calculate the area of consumer surplus/producer
surplus when government imposes a tariff.
21. Given a graph, identify the incidence of a tax on buyers and sellers and
the deadweight loss.
22. Apply the utility-maximizing rule.
23. Given a demand/supply graph, identify/calculate the area of consumer
surplus/producer surplus.
24. Distinguish economic profit from accounting profit.
25. Use a circular flow diagram to model a market.
26. Make a distinction between the short run and the long run.
27. Define the law of diminishing marginal returns.
28. Identify per unit costs when given total costs and output; identify total
costs when given per unit costs output.
29. Identify the key characteristics of the different types of market structure.
30. Use the profit-maximizing rule (MR = MC) to determine output price for
firms in the different types of market structure.
31. Determine short-run and long-run profit in the different types of market
structure.
32. In words and using graphical analysis, show the short-run and the long-run
equilibria of the purely competitive firm.
33. In words and using graphical analysis, show the profit scenario of a single
price monopolist and a perfectly price-discriminating monopolist.
34. Identify the government policies employed when a firm exercises
monopoly power or is a natural monopoly.
35. In words and using graphical analysis, show the equilibrium of the
monopolistically competitive firm in the short run and the long run.
36. Predict the behavior of oligopolistic firms using game theory and profit
matrixes.
37. Define derived demand.
38. Given a graph or a firm’s production schedule (function) and a market
wage, determine the quantity of labor a profit-maximizing firm would hire in
a perfectly competitive labor market.
39. Given a graph or a firm’s production schedule (function), determine the
market wage and the quantity of labor a profit-maximizing firm would hire
in an imperfectly competitive labor market.
40. List the economic functions of government.
41. Define a public good.
42. Discuss the free rider problem.
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Skills
Confidence level: What score would you
give your mastery of this topic, using the AP
scale?
1
43. List the effect of income and payroll taxes on the economy.
44. Identify the two principles used to assess fairness of a tax.
45. Explain negative and positive externalities and give examples of each.
46. Identify the possible remedies for market failures that might be employed
to achieve a socially optimal allocation of resources.
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