AP Economics: What are some typical questions?

I'm really interested in AP Economics, but I'm curious to know what types of questions will be there on the exam. Can anyone share some examples of the kinds of questions or topics covered in the test? Thanks a lot!

Sure, I'd be happy to help! AP Economics is divided into two separate exams: AP Microeconomics and AP Macroeconomics. Each exam covers a distinct set of topics and questions. Below are some examples of questions you might encounter on each exam:

AP Microeconomics:

1. Opportunity Cost: Explain the concept of opportunity cost and provide an example of a trade-off you might encounter in daily life.

2. Elasticity: Define price elasticity of demand and explain how it can affect a firm's revenue. Calculate the price elasticity of demand given the percentage change in price and quantity demanded.

3. Perfect Competition: Describe the characteristics of a perfectly competitive market, and explain how firms determine their profit-maximizing output level in such markets.

4. Monopoly: Explain the difference between a monopoly and a competitive market. Discuss how monopolists determine the profit-maximizing price and output level.

5. Game Theory: Describe a Nash equilibrium scenario in a two-player game using a payoff matrix.

AP Macroeconomics:

1. GDP: Define Gross Domestic Product (GDP) and explain the difference between nominal GDP and real GDP.

2. Fiscal Policy: Explain the difference between expansionary and contractionary fiscal policies, providing an example of each.

3. Monetary Policy: Describe the tools central banks use to control the money supply and influence the economy. Explain the effects of expansionary and contractionary monetary policies on interest rates and aggregate demand.

4. Unemployment: Define the types of unemployment (e.g., frictional, structural, and cyclical), and discuss the natural rate of unemployment.

5. Inflation: Explain the difference between cost-push inflation and demand-pull inflation, and describe the potential consequences of prolonged inflation for an economy.

These are just a few examples of the topics and types of questions you may encounter on the AP Microeconomics and AP Macroeconomics exams. You'd want to study the entire range of topics included in each exam's curriculum in order to be well-prepared on exam day—consider reaching out to the teachers of these classes, or doing some exploring on the College Board's website to get a more comprehensive sense of what would be waiting for you if you decide to enroll.

Good luck with your studies!