AP Microeconomics/Macroeconomics Premium, 2025: Prep Book with 4 Practice Tests + Comprehensive Review + Online Practice

Be prepared for exam day with Barron's. Trusted content from AP experts! Barron's AP Microeconomics/Macroeconomics Premium, 2025 includes in‐depth content review and practice. It's the only book you'll need to be prepared for exam day. Written by Experienced Educators Learn from Barron's‐‐all content is written and reviewed by AP experts Build your understanding with comprehensive review tailored to the most recent exams Get a leg up with tips, strategies, and study advice for exam day‐‐it's like having a trusted tutor by your side Be Confident on Exam Day Sharpen your test‐taking skills with 4 full‐length practice tests–1 AP Micro exam and 1 AP Macro exam in the book, and 1 additional AP Micro exam and 1 additional AP Macro exam online–plus detailed answer explanations for all questions Strengthen your knowledge with in‐depth review... Title Page Dedication Acknowledgment Copyright About the Authors Table of Contents How to Use This Book Introduction 1. The AP Tests in Microeconomics and Macroeconomics Introduction Microeconomics, Macroeconomics, or Both? The Tests: What Topics Will You See? Multiple-Choice Questions Free-Response Questions Practice, Practice, Practice Microeconomics Pretest Pretest AP Score Estimate Answer Explanations Macroeconomics Pretest Pretest AP Score Estimate Answer Explanations 2. The Discipline of Economics What Is Economics? Macroeconomics vs. Microeconomics Positive vs. Normative Economics Resources Opportunity Cost Production Possibilities Frontier Comparative Advantage Multiple-Choice Review Questions Free-Response Review Questions 3. Economic Systems The Fundamental Economic Questions Economic Systems The Circular Flow Diagram Multiple-Choice Review Questions Free-Response Review Questions 4. Demand and Supply: The Basics Introduction Demand and the Law of Demand Supply and the Law of Supply Market Equilibrium: Supply and Demand Together Effects of Supply and Demand Shifts on Price and Quantity Multiple-Choice Review Questions Free-Response Review Questions Microeconomics Barron’s Essential 5 5. Elasticity, Taxation, and Consumer Choice Introduction Elasticity of Demand Total Revenues Test to Determine Elasticity Perfect Elasticity Elasticity Along a Demand Curve Cross-Price Elasticity of Demand Income Elasticity of Demand Price Elasticity of Supply Consumer and Producer Surpluses Impact of Taxes on Consumer and Producer Surpluses Trade, Tariffs, and Quotas Consumer Choice Theory The Utility-Maximization Rule Formulas Multiple-Choice Review Questions Free-Response Review Questions 6. Costs of Production Introduction Short Run vs. Long Run The Production Function Calculating Costs Taxes and Shifting Cost Curves Stages of the Long-Run Average Total Cost Curve Returns to Scale Economic vs. Accounting Profit Formulas Multiple-Choice Review Questions Free-Response Review Questions 7. Perfect Competition Introduction to Market Structures Profit-Maximizing Level of Output Perfect Competition The Shut-Down Rule Perfect Competition in the Long Run Formulas Multiple-Choice Review Questions Free-Response Review Question 8. Monopoly Introduction The Nature of a Monopoly A Monopolist’s Demand Curve Graphing a Monopoly Interpreting a Monopoly Graph Price Discrimination Price Discrimination Shown Graphically Natural Monopolies and Regulation of Monopolies Formulas Multiple-Choice Review Questions Free-Response Review Questions 9. Imperfect Competition: Monopolistic Competition and Oligopoly Introduction Efficiency and Monopolistic Competition Interpreting a Monopolistic Competition Graph Introduction to Oligopoly It’s Game Time: Modeling Oligopoly with Game Theory Nash Equilibrium and the Prisoner’s Dilemma Formulas Multiple-Choice Review Questions Free-Response Review Questions 10. Resource Markets with Applications to Labor Introduction to Factor Markets Key Concepts of Factor Markets Marginal Revenue Product (MRP) and Marginal Factor Cost (MFC) The Three Shifters of Resource Demand Perfectly Competitive Labor Market Monopsony Least-Cost Rule Formulas Multiple-Choice Review Questions Free-Response Review Questions 11. Government and Public Sector: Market Failure, Externalities, Public Goods, Efficiency Introduction Market Failure and Externalities Marginal Social Benefit (MSB) = Marginal Social Cost (MSC) Externalities Positive Externalities Negative Externalities Public vs. Private Goods The Distribution of Income Types of Taxes Formulas Multiple-Choice Review Questions Free-Response Review Question Key Microeconomics Graphs Microeconomics Practice Test Section I—Multiple-Choice Questions Section II—Free-Response Questions Answer Explanations Macroeconomics Barron’s Essential 5 12. The National Economic Accounts The Accounts Gross Domestic Product The Expenditure Approach The Income Approach The Value-Added Approach Real GDP The Underground Economy Other Things Not Counted in GDP Per Capita GDP Limitations of GDP Formulas Multiple-Choice Review Questions Free-Response Review Questions 13. Inflation and Unemployment The Twin Evils Inflation Unemployment Formulas Multiple-Choice Review Questions Free-Response Review Questions 14. Money and Banking M1, M2, and the Monetary Base Fiat Money The Functions of Money The Federal Reserve System The Money Expansion Process Policy Tools of the Federal Reserve Formulas Multiple-Choice Review Questions Free-Response Review Questions 15. Monetary Theory The Equation of Exchange The Loanable Funds Market The Money Market Formulas Multiple-Choice Review Questions Free-Response Review Questions 16. Aggregate Supply and Aggregate Demand Business Cycles Long-Run Aggregate Supply Short-Run Aggregate Supply Aggregate Demand Using the Aggregate Supply/Aggregate Demand Model Economic Growth Multiple-Choice Review Questions Free-Response Review Questions 17. Monetary Policy Monetary Policy Defined Monetary Policy in Theory Monetary Policy in Practice The Phillips Curve Multiple-Choice Review Questions Free-Response Review Questions 18. Fiscal Policy Fiscal Policy Defined Fiscal Policy in Theory Fiscal Policy in Practice Crowding Out Government Spending and Tax Multipliers Automatic Stabilizers The National Debt and Deficits Formulas Multiple-Choice Review Questions Free-Response Review Questions 19. International Trade and Finance The Balance of Trade Trade Restrictions The Balance of Payments Exchange Rates Monetary and Fiscal Policy in an Open Economy Formulas Multiple-Choice Review Questions Free-Response Review Questions The Big 5 Graphs of Macroeconomics in Action Macroeconomics Practice Test Section I—Multiple-Choice Questions Section II—Free-Response Questions Answer Explanations Be prepared for exam day with Barrons. Trusted content from AP experts!Barrons AP Microeconomics/Macroeconomics Premium, 2025 includes indepth content review and practice. Its the only book youll need to be prepared for exam day.Written by Experienced Educators Learn from Barronsall content is written and reviewed by AP expertsBuild your understanding with comprehensive review tailored to the most recent examsGet a leg up with tips, strategies, and study advice for exam dayits like having a trusted tutor by your side Be Confident on Exam Day Sharpen your testtaking skills with 4 fulllength practice tests 1 AP Micro exam and 1 AP Macro exam in the book, and 1 additional AP Micro exam and 1 additional AP Macro exam onlineplus detailed answer explanations for all questions Strengthen your knowledge with indepth review covering all units on the AP Microeconomics exam and the AP Macroeconomics examDetermine your strengths and areas for improvement by taking pretests (that cover frequently tested topics) for both subjectsReinforce your learning with multiple-choice and free-response review questions at the end of each chapter, all accompanied by clear answers and explanations and graphs where needed to better illustrate key concepts Robust Online Practice Continue your practice with 1 full-length AP Micro practice test and 1 full-length AP Macro practice test on Barrons Online Learning HubSimulate the exam experience with a timed test optionDeepen your understanding with detailed answer explanations and expert adviceGain confidence with scoring to check your learning progress