The Best Test Preparation for the Advanced Placement Examinations: For Both Microeconomics & Macroeconomics

by SATTORA RICHARD

• ISBN13: 9780878914593
• ISBN10: 0878914595
• Format: Paperback
• Copyright: 2003-11-01
• Publisher: Research & Education Assn
• More Book Details
• Purchase Benefits

Summary

This book can be used for self-study or by any class preparing for the AP Microeconomics and/or Macroeconomics exams. The book is the product of a massive effort to provide two complete practice tests based on the official AP exam questions released by the College Board. A complete answer key follows each practice test, along with detailed explanations for every answer. Also included are comprehensive reviews covering all major topics found on both exams. By studying the reviews and completing the two practice tests, students can discover their strengths and weaknesses and become well-prepared for the actual AP Examinations. Book jacket.

Author Biography

Author Richard Sattora is the recipient of the Blue Ribbon Teacher of Economics award from the Federal Reserve Bank of Dallas.

Table of Contents

ABOUT RESEARCH & EDUCATION ASSOCIATION	ix
INDEPENDENT STUDY SCHEDULE	xi
PASSING THE AP ECONOMICS EXAMS	1	(12)
About this Book	3	(1)
About the Advanced Placement Program	3	(1)
About the AP Economics Exams	4	(1)
AP Microeconomic Exam Topical Distribution	4	(1)
AP Macroeconomic Exam Topical Distribution	5	(1)
About Our Topical Review	6	(2)
Scoring the Official Exams	8	(1)
Studying for Your AP Exam	9	(1)
Test-Taking Tips	10	(1)
What You'll Face on Test Day	11	(2)
BASIC ECONOMIC CONCEPTS REVIEW	13	(18)
Key Terms	15	(1)
Economic Foundations	16	(2)
Origins of Supply	18	(3)
Origins of Demand	21	(3)
Markets	24	(2)
Circular Flow Model	26	(5)
AP MICROECONOMICS REVIEW	31	(50)
AP Microeconomics Course Structure	33	(3)
Microeconomics: Basic Economic Concepts	33	(1)
The Nature and Functions of Product Markets	33	(1)
Factor Markets	34	(1)
Efficiency, Equity, and the Role of Government	35	(1)
Microeconomics Review	36	(45)
Key Terms	36	(1)
Interaction of Supply and Demand	37	(1)
Price Elasticity of Demand	37	(3)
The Total Revenue Test	40	(2)
Cross Elasticity of Demand	42	(1)
Government Intervention in the Free Market	43	(2)
Price Elasticity of Supply	45	(2)
Consumer Choice	47	(1)
Income Constraints and Budget Limits	48	(1)
Producer Behavior	49	(1)
Opportunity (Economic) Cost	49	(1)
Producer Time Constraints	50	(1)
Short-Run Production Costs	50	(1)
Cost Analysis	51	(2)
Long-Run Costs of Production	53	(3)
Four Production Market Models	56	(11)
Pricing and Employment of Factor Markets	67	(1)
Marginal Resource Productivity Theory	67	(4)
The Labor Market and Wages	71	(5)
Income Inequality and Poverty	76	(2)
Taxation	78	(1)
Transfer Payments	78	(1)
Antidiscrimination Laws	78	(1)
Government Intervention	79	(2)
MICROECONOMICS TEST	81	(50)
Microeconomics Test	83	(29)
Answer Key	112	(1)
Detailed Explanation of Answers	113	(18)
AP MACROECONOMICS REVIEW	131	(46)
AP Macroeconomics Course Structure	133	(3)
Macroeconomics: Basic Economic Concepts	133	(1)
Measurement of Economic Performance	133	(1)
National Income and Price Determination	134	(1)
Economic Growth	135	(1)
International Finance, Exchange Rates, and Balance of Payments	135	(1)
Macroeconomics Review	136	(9)
Key Terms	136	(1)
Measuring Economic Performance	137	(1)
Economic Performance Over Time	138	(2)
Phillips Curve	140	(1)
Consumer Price Index	141	(1)
GDP Price Index	142	(1)
Effects of Inflation	143	(1)
Types of Inflation	143	(1)
Building the Aggregate Expenditure Model	144	(1)
The Great Debate	145	(2)
Focus on Consumer Expenditure	147	(2)
Business Investment, Including Government, and Net Exports to the AE Model (Injections and Leakages)	149	(3)
Focus on Ig and Disequilibrium	152	(1)
GDP and the Multiplier	153	(1)
Investment Demand, Interest Rates, and AD/AS Model	154	(1)
Aggregate Demand/Aggregate Supply Model	155	(4)
AD/AS and Fiscal Policy	159	(1)
Fiscal Policy Issues	160	(1)
Crowding Out	161	(1)
AD/AS and Monetary Policy	162	(1)
Money	162	(2)
Bonds	164	(1)
The Federal Reserve and the Banking System	164	(1)
Types of Banks	165	(1)
Banks, Loans, and the Money Multiplier	166	(1)
The Fed and Monetary Policy	167	(1)
FOMC	168	(2)
Impact of the Global Economy	170	(1)
NAFTA and GATT	171	(1)
Comparative Advantage	172	(1)
Financing International Trade	173	(1)
Balance of Payments	174	(1)
Currency Exchange Rates	175	(2)
MACROECONOMICS TEST	177	(56)
Macroeconomics Test	179	(27)
Answer Key	206	(1)
Detailed Explanation of Answers	207	(26)
APPENDICES	233	(14)
Appendix A	235	(8)
Prior Exam Free-Response Topics	235	(8)
Appendix B	243	(4)
Key Economic Formulae	243	(4)
GLOSSARY	247	(18)
ANSWER SHEETS	265	(10)
INDEX	275	(8)
ABOUT THE AUTHOR	283