Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

AP Economics Study Guide

1
...

Market structures: the study of different market organizations, including perfect
competition, monopolistic competition, oligopoly, and monopoly
...

Examples and use cases of Microeconomics:
Supply and demand: For example, if there is a high demand for a specific product
like iPhone, but limited supply, the product price will increase as buyers are
willing to pay more
...


Market structures: An example of perfect competition is the market for
agricultural products like wheat
...
On the other hand, an
example of a monopoly is the water supply market, where only one supplier holds
the entire market
...
The consumer's decision to buy a car is influenced by their revenue,
preferences, and price
...
Macroeconomics: inflation, unemployment, monetary and fiscal policy
Inflation: the general increase in goods and services prices over time, reducing
purchasing power
...

Monetary policy: the actions taken by a central bank to control the money supply
and interest rates in an economy
...

Examples and use cases of Macroeconomics:
Inflation: For example, if the inflation rate is high, the cost of living will increase,
reducing the purchasing power of consumers
...


Unemployment: For example, if there is a high unemployment rate, the
government may implement policies to increase job creation and reduce
unemployment
...


Monetary policy: For example, the central bank may lower interest rates to
encourage borrowing and spending, leading to economic growth
...


Fiscal policy: For example, if the economy is in a recession, the government may
increase spending on infrastructure projects and provide tax incentives to
businesses to boost economic growth
...

3
...

Globalization is the increasing interconnectedness and interdependence of the
world's economies
...

Examples and use cases of International Economics:
Trade: For example, the US imports cars from Japan and exports soybeans to
China
...


Globalization: For example, multinational companies like Coca-Cola have
operations in multiple countries, allowing them to take advantage of different
labor markets and resource availability
...


Exchange rates: For example, if the value of the US dollar decreases relative to the
euro, European products will become more expensive for Americans, leading to a
decrease in imports from Europe
...
Economic growth and development

The study of how an economy grows over time focuses on increasing productivity,
income, and living standards
...

5
...

Recessions: periods of declining economic activity characterized by falling output
and rising unemployment
...

Business cycles: Expansions, recessions, and depressions: For example, during an
economic expansion, output and employment may increase, leading to increased
consumer spending and economic growth
...
Depression is a severe and
prolonged recession that significantly impacts the economy and the population
...
Agricultural and natural resource economics
The study of how land, water, and natural resources are used to produce food
and other goods
...

Examples and use cases of Agricultural and Natural Resource Economics:
Resource utilization: For example, the study of water resource utilization in
agriculture may explore the best ways to use water efficiently to produce crops
and the impact of water scarcity on agriculture
...

International trade of agricultural products: For example, the US exports large
quantities of farm products, such as soybeans and corn, while importing fruits and
vegetables from countries like Mexico
...
Labor economics: wages, labor markets, and unemployment
Wages: the compensation received by workers for their labor
...

Unemployment is the number of people without work but actively seeking
employment
...


Labor markets: For example, the study of labor markets may explore the impact
of minimum wage laws, the role of unions, and the effects of immigration on
labor markets
...


8
...

Taxation: the process by which the government collects revenue from citizens and
businesses to fund its spending
...

Examples and use cases of Public Finance:
Government spending: For example, the government may increase national
defense in response to a perceived threat or increase spending on social services
such as education or health care in response to social needs
...

Budget deficit: For example, if the government spends more money than it
collects in taxes, this will lead to a budget deficit, which may be financed through
borrowing or printing more money
...
Health economics
The study of how resources are allocated and used within the healthcare sector
and how government policies and insurance impact health outcomes and costs
...


Government policies: For example, the government may implement policies to
increase access to health care, such as expanding Medicaid coverage or offering
tax credits for health insurance
...


10
...
This field
also explores the costs and benefits of different approaches to environmental
protection and the economic incentives for companies and individuals to adopt
more sustainable practices
...


Government policies: For example, the government may implement policies to
reduce power plants’ emissions or protect wildlife habitats
...


11
...
For example, the study of education economics might
examine the impact of school funding on student achievement or the benefits and
costs of different approaches to student loan programs
...
Income inequality and poverty
The study of how income is distributed across a population and how poverty and
inequality impact economic growth and individual well-being
...


13
...
The monetary transmission mechanism refers to
how changes in monetary policy affect the economy, such as through changes in
interest rates and credit availability
...


14
...

Quotas: limits on the quantity of a particular good that can be imported
...
For example, trade agreements might reduce barriers to
trade, such as tariffs, or establish rules for fair competition, such as restrictions on
state-owned enterprises
...
Game theory and industrial organization
...

Industrial organization: the study of how firms compete and cooperate in
different market structures, such as monopolies, oligopolies, and monopolistic
competition
...




---