| A. Supply and demand |
|
| 1. Market equilibrium |
4.3 |
| 2. Determinants of supply and demand |
4.1, 4.2 |
| 3. Price and quantity controls |
Chapter 7 |
| 4. Elasticity |
|
| —a. Price, income, and cross price elasticities of demand |
7.1 |
| —b. Price elasticity of supply |
7.2 |
| —c. Production quota |
7.3 |
| 5. Consumer surplus, producer surplus, and market efficiency |
Chapter 5 |
| 6. Tax incidence and deadweight loss |
8.1 |
| B. Theory of consumer choice |
|
| 1. Total utility and marginal utility |
11.2 |
| 2. Utility maximization: equalizing marginal utility per dollar |
11.2 |
| 3. Individual and market demand curves |
11.2 |
| 4. Income and substitution effects |
The AP* Test Prep Workbook |
| C. Production and costs |
|
| 1. Production functions: short and long run |
12.2 |
| 2. Marginal product and diminishing returns |
12.2 |
| 3. Short-run costs |
12.3 |
| 4. Long-run costs and economies of scale |
12.3 |
| 5. Cost minimizing input combination |
12.4 |
| D. Firm behavior and market structure |
|
| 1. Profit |
|
| —a. Accounting versus economic profit |
12.1 |
| —b. Normal profit |
12.1, 13.1 |
| —c. Profit maximization: MR=MC rule |
13.1, 14.2, 15.2 |
| 2. Perfect competition |
|
| —a. Profit maximization |
13.1 |
| —b. Short-run supply and shutdown decision |
13.1, 13.2 |
| —c. Behavior of firms and markets in the sort run and in the long run |
13.2, 13.3 |
| —d. Efficiency and perfect competition |
Chapter 6, 13.3, 14.3 |
| 3. Monopoly |
|
| —a. Sources of market power |
14.1 |
| —b. Profit maximization |
14.2, 14.3 |
| —c. Inefficiency of monopoly |
14.3 |
| —d. Price discrimination |
14.4 |
| 4. Oligopoly |
|
| —a. Interdependence, collusion, and cartels |
16.1, 16.2 |
| —b. Game theory and strategic behavior |
16.3 |
| 5. Monopolistic competition |
|
| —a. Product differentiation and role of advertising |
15.1, 15.3 |
| —b. Profit maximization |
15.1, 15.3 |
| —c. Short-run and long-run equilibrium |
15.2 |
| —d. Excess capacity and inefficiency |
15.2 |
