Tag: AP Microeconomics

Based on the Official AP Microeconomics Course and Exam Description 4 Big Ideas, 6 Units, and Unit Topics The big ideas serve as the foundation of the course and allow students to create meaningful connections among concepts. BIG IDEA 1: SCARCITY AND MARKETS (MKT) Limited resources and unlimited wants result in the need to make choices. In a market economy, the choices of buyers and sellers determine market prices and the allocation of scarce resources. BIG IDEA 2: COSTS, BENEFITS, AND MARGINAL ANALYSIS (CBA) There are trade-offs associated with any decision. Making optimal decisions requires evaluating the additional costs and benefits of possible actions. BIG IDEA 3: PRODUCTION CHOICES AND BEHAVIOR (PRD) Firms seek to minimize costs and maximize profits, which influences their production decisions in the short run and long run. BIG IDEA 4: MARKET INEFFICIENCY AND PUBLIC POLICY (POL) Private markets can fail to allocate resources efficiently, and well-designed public policy can endeavor to promote greater efficiency and equity in the economy.