Main content

Basic economics concepts

AP Macro: MKT (BI), MKT‑1 (EU), MKT‑2 (EU), MOD (BI), MOD‑1 (EU)

Scarcity

AP Macro: MOD (BI), MOD‑1 (EU), MOD‑1.A (LO), MOD‑1.A.1 (EK)
Learn
Introduction to economics
(Opens a modal)
Scarcity
(Opens a modal)
Four factors of production
(Opens a modal)
Normative and positive statements
(Opens a modal)
Economic models
(Opens a modal)
Lesson summary: Introduction to Macroeconomics
(Opens a modal)
Practice
Introduction to scarcity and the economic way of thinkingGet 3 of 4 questions to level up!
0/100 points

Opportunity cost and the Production Possibilities Curve

AP Macro: MOD (BI), MOD‑1 (EU), MOD‑1.B (LO), MOD‑1.B.1 (EK), MOD‑1.B.2 (EK), MOD‑1.B.3 (EK), MOD‑1.B.4 (EK), MOD‑1.B.5 (EK)
Learn
Production possibilities curve
(Opens a modal)
Opportunity cost
(Opens a modal)
Increasing opportunity cost
(Opens a modal)
PPCs for increasing, decreasing and constant opportunity cost
(Opens a modal)
Production Possibilities Curve as a model of a country's economy
(Opens a modal)
Lesson summary: Opportunity cost and the PPC
(Opens a modal)
Practice
Opportunity cost and the PPCGet 3 of 4 questions to level up!
0/100 points

Comparative advantage and the gains from trade

AP Macro: MKT (BI), MKT‑1 (EU), MKT‑1.A (LO), MKT‑1.A.1 (EK), MKT‑1.A.2 (EK), MKT‑1.B (LO), MKT‑1.B.1 (EK), MKT‑1.B.2 (EK)
Learn
Comparative advantage, specialization, and gains from trade
(Opens a modal)
Comparative advantage and absolute advantage
(Opens a modal)
Opportunity cost and comparative advantage using an output table
(Opens a modal)
Terms of trade and the gains from trade
(Opens a modal)
Input approach to determining comparative advantage
(Opens a modal)
When there aren't gains from trade
(Opens a modal)
Comparative advantage worked example
(Opens a modal)
Lesson summary: Comparative advantage and gains from trade
(Opens a modal)
Practice
Comparative advantage and the gains from tradeGet 3 of 4 questions to level up!
0/100 points

Quiz 1

Level up on the above skills and collect up to 300 Mastery points

Demand

AP Macro: MKT (BI), MKT‑2 (EU), MKT‑2.A (LO), MKT‑2.A.1 (EK), MKT‑2.B (LO), MKT‑2.B.1 (EK)
Learn
Law of demand
(Opens a modal)
Price of related products and demand
(Opens a modal)
Change in expected future prices and demand
(Opens a modal)
Changes in income, population, or preferences
(Opens a modal)
Normal and inferior goods
(Opens a modal)
Change in demand versus change in quantity demanded
(Opens a modal)
Lesson summary: Demand and the determinants of demand
(Opens a modal)
Practice
DemandGet 3 of 4 questions to level up!
0/100 points

Supply

AP Macro: MKT (BI), MKT‑2 (EU), MKT‑2.C (LO), MKT‑2.C.1 (EK), MKT‑2.D (LO), MKT‑2.D.1 (EK)
Learn
Law of supply
(Opens a modal)
Factors affecting supply
(Opens a modal)
Change in supply versus change in quantity supplied
(Opens a modal)
Lesson summary: Supply and its determinants
(Opens a modal)
Practice
SupplyGet 3 of 4 questions to level up!
0/100 points

Market equilibrium, disequilibrium, and changes in equilibrium

AP Macro: MKT (BI), MKT‑2 (EU), MKT‑2.E (LO), MKT‑2.E.1 (EK), MKT‑2.F (LO), MKT‑2.F.1 (EK), MKT‑2.G (LO), MKT‑2.G.1 (EK)
Learn
Market equilibrium
(Opens a modal)
Changes in market equilibrium
(Opens a modal)
Changes in equilibrium price and quantity when supply and demand change
(Opens a modal)
Lesson summary: Market equilibrium, disequilibrium, and changes in equilibrium
(Opens a modal)
Practice
Market equilibrium and disequilibriumGet 3 of 4 questions to level up!
0/100 points
Changes in equilibriumGet 3 of 4 questions to level up!
0/100 points

Quiz 2

Level up on the above skills and collect up to 400 Mastery points
Up next for you:

Unit test

Level up on all the skills in this unit and collect up to 700 Mastery points!

About this unit

In this unit, you'll learn fundamental economic concepts like scarcity, opportunity cost, and supply and demand. You will learn things like the distinction between absolute and comparative advantage, how to identify comparative advantage from differences in opportunity costs, and how to apply the principle of comparative advantage to determine the basis on which mutually advantageous trade can take place between individuals and/or countries.
AP® is a registered trademark of the College Board, which has not reviewed this resource.