Practice sets for AP Microeconomics. Each one runs in the browser, shuffles its questions every time you open it, and explains every answer — right or wrong.
The vocabulary of the unit: scarcity and the factors of production, micro against macro, positive against normative, opportunity cost, economic systems, and reading a production possibilities curve.
The decision rule in practice — keep going while marginal benefit is at least marginal cost, and stop when it is not. Worked through study hours, advertising and one slice of pizza too many.
Work opportunity costs out of an output table, find which country holds the comparative advantage in each good, and pin down the range of terms at which both sides gain from trading.
The distinction the rest of the unit rests on: a change in the good’s own price moves you along a curve, while anything else shifts the whole curve. Drilled on a single grape market.
Price elasticity of demand and supply, plus the cross-price and income elasticities. Simple against midpoint method, the determinants that drive each one, and the total revenue test.
Solve algebraically for the clearing price and quantity, read shortages and surpluses off a price that is not clearing, and work out where a single shift — or two at once — leaves the market.
Measure both surpluses and their total, find the deadweight loss when the quantity traded is wrong in either direction, and see how elasticity decides which side collects the gain from a shift.
Excise taxes and who really bears them, subsidies, binding and slack price ceilings and floors, and production quotas — the wedge each one opens, who collects it, and what it destroys.
Start from the no-trade price, then open up: imports or exports, who in the country wins and who loses, and what a tariff or an import quota does to price, quantity, revenue and surplus.
The vocabulary of the whole unit: demand against quantity demanded, what shifts each curve, equilibrium and disequilibrium, the elasticity determinants, surplus, price controls and trade terms.