AP Economics Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about AP Economics and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on AP Economics and get quick solutions for your test.

What is AP Economics?

AP Economics is a college-level course designed to give students an overview of the economic concepts and theories that govern our society. It combines both micro- and macroeconomic principles, delving into topics such as supply and demand, fiscal policy, monetary policy, international trade, labor markets, economic growth and development. It also covers how these various aspects of economics interact with each other in the wider context of globalized economies. As such, it provides an understanding of how decision makers make decisions based on economic data when faced with uncertain economic conditions.The course begins by introducing key terms associated with economics including scarcity, opportunity cost, production possibilities curves (PPCs), comparative advantage and market failure. This section also introduces fundamental market structures (perfect competition/monopoly) along with their respective pricing strategies (price discrimination/predatory pricing). After this initial introduction to economics is complete students will be introduced to some more advanced topics like inflationary expectations theory as well as an exploration of the efficacy of different government policies such as taxation or minimum wage regulations. The second part of the course then dives deeper into topics related to money and banking focusing on central banks’ ability to influence currency exchange rates through open market operations; inflation targeting; interest rate determination; securities markets regulation; financial sector reform; international capital flows; money creation process etc . Finally the third part puts all these pieces together exploring topics like macroeconomic stability & sustainability indicators; fiscal & monetary policy coordination ; foreign direct investments vs portfolio investments etc . Overall AP Economics helps students gain a comprehensive knowledge foundation required for them pursue higher studies in economics or finance related disciplines while providing essential tools needed for making decisions in any field where ‘money matters’ – from business management decisions at corporate level to personal savings planning for retirement objectives .