AP Macro Unit 1 Review: Basic Economic Concepts
AP Macro Unit 1 covers scarcity, opportunity cost, the production possibilities curve, comparative advantage and trade, and a first pass at supply and demand. It is the smallest unit at 5–10% of the exam, but its PPC and comparative-advantage questions are reliable, fast points.
What's in Unit 1
- 1Scarcity
- 2Opportunity cost and the production possibilities curve
- 3Comparative advantage and gains from trade
- 4Demand and supply basics
- 5Market equilibrium and changes in equilibrium
Study this unit free on EconLearn
What to master for the exam
- Calculate opportunity cost from output and input tables without hesitation.
- Determine terms of trade that benefit both countries (between the two opportunity costs).
- Distinguish a movement along the PPC (trade-off) from a shift of the PPC (growth).
- Refresh supply/demand shifts — macro reuses them inside AD-AS and foreign exchange graphs.
AP Macro Unit 1: common questions
What is on AP Macro Unit 1?
Scarcity, opportunity cost, the production possibilities curve, comparative advantage with terms of trade, and basic supply and demand with market equilibrium. It is the smallest unit of the AP Macro exam at 5–10% of the score.
Is AP Macro Unit 1 the same as AP Micro Unit 1?
They overlap heavily — both cover scarcity, opportunity cost, the PPC, and comparative advantage. AP Micro Unit 1 additionally includes utility maximization and cost-benefit analysis, while AP Macro Unit 1 adds a supply-and-demand refresher that the AD-AS and foreign-exchange units build on. If you have taken one course, Unit 1 of the other is mostly review.