Tips for Students New to AP Microeconomics
Advanced Placement (AP) Microeconomics is becoming an increasingly popular AP subject for students. For many, the concepts introduced in AP Microeconomics will be entirely new, and as such, they may struggle to understand the material. The content heavy nature of the AP Microeconomics exam may also be daunting, especially considering students are expected to learn over 20 graphs. However, as long as students plan ahead with a good study schedule and work hard consistently until the exam, there is nothing to worry about. Below are a few tips to make AP Microeconomics easier for new students to tackle the material and better prepare them for the challenges ahead.
Learn your Definitions
Oftentimes, students may understand certain economic terms but struggle to explain them in coherent English, which will negatively impact their ability to answer questions in the AP Microeconomics exam. There are two sections in the AP Microeconomics exam: the multiple-choice questions section and the free-response questions section. Students are expected to understand and provide definitions in the multiple-choice section. Therefore, without clear and concise definitions students may make mistakes. The multiple-choice section is worth 66% of the total AP Microeconomics score, so students must avoid neglecting the basics. Students are strongly recommended to include definitions in their notes. Compiling a glossary of all the Microeconomics terms is a good place to start. A basic example of one can be found on our Economics Glossary page.
Below is an example of a simple multiple-choice question testing students on their knowledge of basic economic definitions:
This type of question is very simple. If students have learned the definition of economics, they will instantly be able to identify the correct answer. These are easy points to obtain and answering quickly can save much needed time for trickier questions!
Practice Drawing Graphs
Graphs are a significant part of the AP Microeconomics material. Over 20 complex graphs will be introduced to students in AP Microeconomics and they are expected to learn them all in great detail. Students will need to be able to reproduce graphs accurately in the free-response question section of the exam, as well as manipulate and analyze them. There will always be a question in the free-response section that involves drawing multiple graphs. This is why students must practice drawing graphs. Even small mistakes, such as mislabeling a curve, will cost students valuable points.
Below is an example of how AP examiners will be instructed on scoring one part of a free-response graph question:
As you can see, the examiners are instructed to look for minor details, such as where the curves intersect. Even one small part of a question can have as many as three points awarded for specific details.
Quantity Demanded or Demand?
A common mistake made by students is not knowing the difference between a change in quantity demanded and a change in demand. This is an easy mistake to make because students assume they are the same because they are similar. However, they are fundamentally different concepts and must not be confused. Learn the difference early on to avoid confusion when studying the more advanced material.
Quantity demanded is simply how much a good or service is demanded at a specific price. For example, the quantity demanded at price P1 is Q1 but the price of the good suddenly falls to P2. Therefore, the quantity demanded increases from Q1 to Q2 when the price decreases from P1 to P2. Conversely, the quantity demanded decreases from Q2 to Q1 when the price increases from P2 to P1:
Demand defines the willingness of a consumer to purchase a good or service. This is illustrated by a demand curve (D1), which can be seen in the graph below. The demand curve is a graphical representation of the relationship between the price and quantity demanded. Therefore, changes in demand cause a shift in the demand curve. This can be caused by many factors, such as changes in a consumer’s incomes or tastes. For example, economic expansion causes consumers’ incomes to rise, which creates an increase in demand for the good. This will cause the demand curve to shift from D1 to D2:
AP examiners will often test students on common mistakes, such as confusing quantity demanded and demand. Confusing the two concepts will result in lost points in both the multiple-choice and free-response sections of the AP Microeconomics exam.
Know Your Marginals
Marginal analysis is the study of the additional benefits of an activity versus the costs. For example, the marginal benefit of consuming a good is the benefit an individual will receive from consuming one additional unit of that good. This forms the basis of a large proportion of Microeconomic theories and is highly important to understand the concept. Individuals are assumed to be rational and will do what is best for them. As such, they will consume a good until the point where the marginal benefit equals the marginal cost. This is simply explained by assuming that if an individual consuming one additional unit has a greater benefit than cost, the individual will consume the good. This individual will continue consuming one additional unit of the good until the net benefits are zero, which is where marginal benefit equals marginal cost.
This analysis can be adapted to many situations in AP Microeconomics, such as marginal utility or marginal revenue analysis. Students must understand that individuals will seek to equate the marginal benefit and marginal cost in decision-making.
Final Words
This is only a guide for AP Microeconomics students to aid them in the difficult beginnings of learning the material. Students who want to achieve a higher-level AP score will need further in-depth training. The material will progressively get more technical as students will be expected to apply the economics concepts they have learned to analyze various market structures. Students taking AP Microeconomics at school or self-learning will benefit greatly from one-on-one training. Our experienced Economics faculty can aid students with better understanding AP Microeconomics content because all faculty members have completed full, timed AP Microeconomics and AP Macroeconomics tests with perfect scores. As part of our teacher vetting, all faculty members must score perfect on their respective tests in order to teach our students! If you are interested, perhaps try taking a free AP Microeconomics Diagnostic Test that our Economics faculty will happily grade and respond with their professional analysis.
