You’ve spent the year gaining advanced knowledge. Now it’s time to reap the rewards: money-saving college credit or advanced placement, and an admissions edge. Yet a top score on the AP exam requires more than knowing the material. Even if your instructor was great and you worked hard in class, you need to get comfortable with the test format itself, preparing for pitfalls and arming yourself with foolproof strategies. That’s where the Kaplan plan offers the clear advantage. With more than 70 years of proven test-prep experience, Kaplan has developed unique study guides that provide cutting-edge review while honing your test-taking skills.

About the Authors

Kaplan Panel of AP Experts

PART ONE: THE BASICS

Chapter 1: Inside the AP Economics Exams

AP Economics

Overview of the Exam Structure

How the Exams Are Scored

Registration and Fees

Additional Resources

Chapter 2: Strategies for Success: It's Not Always How Much You Know.

Book Overview

Strategies for the AP Economics Exams

Section h Multiple-Choice Questions

Ten-Minute Reading Period

Section Ih Free-Response Questions

Stress Management

Countdown to the Tests

PART TWO: DIAGNOSTIC TESTS

AP Macroeconomics Diagnostic Test

How to Compute Your Score

Answers and Explanations

AP Microeconomics Diagnostic Test

How to Compute Your Score

Answers and Explanations

PART THREE: AP MACROECONOMICS REVIEW

Chapter 3: Basic Economic Concepts

Scarcity, Choice, and Opportunity Costs

Economic Systems

Production Possibilities Curve

Comparative Advantage, Specialization, and Exchange

Demand, Supply, and Market Equilibrium

Review Questions

Answers and Explanations

Chapter 4: Measurement of Economic Performance

National Income Accounts

GDP and GNP

Business Cycles, Unemployment, and Growth

Inflation Measurement

Unemployment

Review Questions

Answers and Explanations

Chapter 5: National Income and Price Determination

Aggregate Demand (AD)

Aggregate Supply (AS)

Macroeconomic Equilibrium

Fiscal Policy and the Multipliers

Review Questions

Answers and Explanations

Chapter 6: Financial Sector

Money, Banking, and Financial Markets

The Demand for Money

Private Banks and the Money Supply

The Central Bank and Control of the Money Supply

Interest Rate

Quantity Theory of Money

Review Questions

Answers and Explanations

Chapter 7: Inflation, Unemployment, and Stabilization Policies

Fiscal and Monetary Policies

Inflation and Unemployment

Review Questions

Answers and Explanations

Chapter 8. Economic Growth and Productivity

Economic Growth

Review Questions

Answers and Explanations

Chapter 9: Open Economy: International Trade and Finance

Balance of Payment Accounts

Balance of Payments

Foreign Exchange Market

Trade Restrictions

Review Questions

Answers and Explanations

PART FOUR: AP MICROECONOMICS REVIEW

Chapter 10: Basic Economic Concepts

Scarcity, Choice, and Opportunity Cost

Production Possibilities Curve

Comparative Advantage, Specialization, and Trade

Economic Systems

Property Rights and Incentives

Marginal Analysis

Review Questions

Answers and Explanations

Chapter 11: The Nature and Functions of Product Markets

Supply and Demand

Elasticity

Consumer Surplus, Producer Surplus, and Market Efficiency

Theory of Consumer Choice

Production and Costs

Firm Behavior and Market Structure

Monopoly

Oligopoly

Review Questions

Answers and Explanations

Chapter 12: Factor Markets

Derived Factor Demand

Marginal Revenue Product

Labor Market and Firms' Hiring of Labor

Review Questions

Answers and Explanations

Chapter 13: Market Failure and the Role of Government

Externalities

Public Goods

Public Policy to Promote Competition

Income Distribution

Review Questions

Answers and Explanations

PART FIVE: PRACTICE TESTS

How to Take the Practice Tests

How to Compute Your Score

AP Macroeconomics Practice Test

Answers and Explanations

AP Microeconomics Practice Test

Answers and Explanations

AP ECONOMICS GLOSSARY