As the name itself suggests, microeconomics deals with the behavior and responses of individual economic units like consumers, households, firms, and personal economic variables. Microeconomics provides us with a microscopic view of the entire economy. The study matter hovers above the relationship between the consumers and the producers. But a lot of us believe that it is quite a complex subject. Many of us fear the mathematical or analytical skills needed to crack this nut. Here is the Complete Answer to Ace Microeconomics Examinations.
Are you also the one with this notion? Do you also believe that micro is harder than macro? Are you willing to take the microeconomics course but stuck at how to go about it? Then, you must check our article. All you need is to take a deep breath. Keep your misconceptions and fears aside and focus on reading this informative article. Now all you need is an open mind, patience, and pen-paper to note down. We assure you that after reading our well-researched piece, you would not have doubts regarding the same. We have tried covering the essential aspects of microeconomics to help you understand if that’s a fit for you. So continue reading ahead!
The requisites of an introductory microeconomics
Mathematical skills required
In case you are the one thinking that microeconomics requires great mathematical prowess, then you must undoubtedly read this. In microeconomics, we generally have to make different assumptions regarding human wants, scarcity, consumer rationale, and measurement of satisfaction level. Now, you must know that these don’t require any mathematic skills. But there are courses offered which use simple mathematics to substantiate the points and elaborate in quantifiable and measurable terms. Have a look at what mathematical concepts are involved:
- Involves drawing graphs that highlight the choices and give a visual effect to the behavior of consumers or producers
- Optimization techniques implementing derivatives are implemented to felicitate comparisons
- Comprehension of interaction between slope and fractional exponents
- Concepts of geometry which is highly applicable in microeconomics
- Serial order of performing the mathematical operations
Normally, we can find the above sort of general mathematics being applied in microeconomics. So, you need not worry much about it. But, if you work harder, you will score higher. Just understand the conceptual things, and this will go a long way in strengthening your proficiency in the subject matter.
Making microeconomics easier
If you are perplexed at what would make your course more accessible, you are at the ideal place, my friend! Nevertheless, you shouldn’t be the one not working on the process and just keeping your fingers crossed to clear it. If you are that person, we are afraid to tell you that this attitude towards the subject will never work. You have to burn the midnight oil to clear it successfully with flying colors. Here’s what all you can do to make microeconomics simpler:
- Plan the whole course as soon as you get your syllabus. This is essentially your first step because you can finalize a deadline for your learning if you plan. You can estimate how much time you need to allot to each of the topics.
- Reading the topics before they are taught will give you an extra edge in the class. Familiarize yourself with the concepts. You can refer to various books or matters available on different platforms to understand them. This will help you to get a clear revision in the class and ask your doubts.
- Before jumping on to the main problems and logical questions, we recommend going through the illustrations. Clear the concepts so that you can answer the questions logically and score well
These are some of the effective steps by which we believe you will walk ahead of your time and clear the subject. You can outline such steps to guide you throughout the process. For example, you can include when to give mock tests and when to revise the completed stuff.
AP registered Examination for microeconomics course
The structure of the Examination
So if you are the one who’s taking the AP microeconomics exam, then you must be aware of the structure thoroughly. If you don’t, then worry not, as we have got you covered. The Examination is divided into two parts.
- The first part is the multiple-choice based questions (MCQs). The duration of this test is estimated to be of 70minutes. Now you will be thinking about the total score, right? So the total of this MCQ will account for 66% of your final score in the Examination. Here you will be given a set of 60 questions. You will have to apply your proficiency and conceptual understanding to select the most suitable of the options provided. The questions could be trickier to test your grasp of the contents of the course. The test will also encompass questions that require analysis of the given imaginary situations in the economy.
For example, the increase in the price of tea affects the demand for coffee.
- Are tea and coffee substitute goods, complementary goods, or inferior goods?
- Give two examples of the same type of goods as above.
- The second part of the test consists of free response-based questions. This accounts for 33% of your final examination score. The questions will include one long essay-type question and two short essay-type questions. The longest question will carry about 50% of the marks, and the other two short ones will carry 25% of each.
Effective tips to clear the exam
The first and the most important tip is known to all. Any guesses? Well, it is grabbing the concepts and being regular towards your studies. You can’t take the exam lightly, for it is only dedicated students who can pass it. So, if you are a follower of this important tip, go through the below-mentioned ones to ace your exam.
- Spend your first 5 to 10 minutes reading the questions thoroughly and finding out what it exactly demands. Understand the question and highlight what’s being asked
- Plan your choices and answers while reading the questions. This ensures that you are quick and fast enough to complete the paper on time.
- Accompany your answers with detailed and nicely labeled diagrams, for it is an essential constituent of a well-written answer. It gives an impression that you are quite knowledgeable and proficient in the matter.
- Use a sharpened pencil and a clean eraser, scale to draw the diagrams. Label it carefully and use arrows if needed
- As per your writing speed, divide the time left after reading the questions. Attach more significance to your long essay type answer and then proportionately distribute the left time for the short ones.
Some sample questions to help
- Assume that you are selecting between going for a movie or a funfair. Now, you are okay to pay $20 for the movie, and the ticket costs $5. You are comfortable paying $90 for the funfair, and the ticket charges are $60. What will be the opportunity cost of going to the funfair?
- One of Fatima’s colleagues urgently required $10000 for a year, and he took it as a loan from Fatima. Assuming that Fatima gave the loan at a 10% rate of interest. Had Fatima not given the amount, it would have yielded an interest of 3% in her bank account. What is the calculable opportunity cost to Fatima for lending the money?
- Which of the given below options indicate the notion of basic economic problems in a country?
- Unlimited wants and never-ending resources
- Infinite resources but limited wants
- Unlimited wants but limited resources
- Never-ending resources and wants
AP Microeconomics course in details
In this course, you will learn about the individual microeconomic variables and their behavior within the economy. You will be using several charts, graphs, and other data analyzing systems to understand and grasp the concepts. The course helps earn college credit and land in advanced courses while studying at a high school. These exams take place every year in May.
Topics covered under this course
The topics that will be covered under this course are as follows:
- Fundamentals of economic concepts- this will lay out the building stone for the foundations as to how you can evaluate the decisions, trade-offs, rationale selections, and microeconomic understanding.
- Demand and supply will clarify the factors that influence the demand and supply in the economy, the effects when either of the two is more and less, and the market operations based on these factors.
- Production, Cost, and Perfect competition model: this will enhance your knowledge of the numerous costs incurred by organizations, the production techniques, and the behavior of companies
- Imperfect competition: this will give you a complete computation of the working of imperfect competition machinery and the significance fastened to game theory in the economic model
- Factor Markets: grow your proficiency in how demand, supply, and marginal decision-making is used in the factor market of land, labor, capital and entrepreneurship
- Market Failure and Government role: when and to what extent does government intervenes in the market, the downfalls and the traps of the market, the outcomes of market failure.
Eligibility criteria for AP Microeconomics course
AP Microeconomics course is believed to be equal to a semester examination as an introductory course in colleges in economics. Practically, there are no prerequisites for this course. The only thing is that students should have the potential to read college textbooks. Fundamental statistical and mathematical skills are expected as they are substantial in absorbing the concepts.
The final words of wisdom
We believe that every person in particular, and we honestly appreciate every effort. Therefore, try to gather knowledge from daily activities and experiences. This will make you brighter and improve your scores when you quote such relevant examples.
We hope that this article has helped you by painting an idea on the vacant canvas of your brain. We have tried to push our limits to cover all crucial aspects related to the subject. We swear to help you like this every time and stand by your side in your confusing moments. Don’t forget to read this whole article if you are undergoing the course or learning the subject for that matter. I hope you enjoyed it. All the best!
Frequently Asked Questions
- Is there a lot of mathematics in microeconomics?
Ans: The answer depends mainly on the level of your course. However, microeconomics is not completely math-based. Instead, it encompasses general mathematics concepts, including geometry, order of operations, graphs, etc.
- Is it better to take microeconomics or macroeconomics at first?
Ans: Preferably, microeconomics is studied before macro. This is because you’ve to understand the behavior of individuals before you understand the behavior of the economy as a whole.
- Can I study economics if I am not good at mathematics?
Ans: Yes, you can! Economics is a different subject altogether, and it encompasses mathematical functions and operations. But it is not entirely based on it. So even if you’re not good, you can study economics.
- Is the AP Microeconomics course demanding?
Ans: when you take it as an AP course, it is highly regarded as a more challenging course than macroeconomics. You can do self-study but need to be regular and practical in approach.