AP Microeconomics

Advanced Placement Microeconomics analyzing individual economic decision-making.

Scarcity and Opportunity CostThe Role of IncentivesMarginal Analysis and Decision Making
Supply and DemandElasticityConsumer and Producer Surplus
Making Daily Economic ChoicesUnderstanding Market InteractionsResponding to Incentives in the Real World
Mastering Graphs and DiagramsApplying Concepts to Real-World ScenariosTime Management During the Exam
Scarcity and Opportu...The Role of Incentiv...Marginal Analysis an...Supply and DemandElasticityConsumer and Produce...Making Daily Economi...Understanding Market...Responding to Incent...Mastering Graphs and...Applying Concepts to...Time Management Duri...
Practical Applications

Making Daily Economic Choices

Using Microeconomics in Everyday Life

Microeconomic concepts help you make smarter decisions every day. Whether it’s budgeting your allowance, deciding what to buy, or choosing how to spend your time, understanding trade-offs and opportunity costs can lead to better outcomes.

Tips for Smarter Choices

  • List your alternatives before making decisions.
  • Think about what you give up with each option.
  • Consider both short-term and long-term benefits.

Real-World Scenarios

  • Deciding between spending money on fast food now or saving for a concert later.
  • Choosing to bike instead of drive to save money on gas.

Examples

  • A student chooses between buying a video game or saving for a new phone.

  • You weigh whether to sleep in or get up early to study for a test.

Next
Understanding Market Interactions