Course Section 1 Content Section 1 Content Left Section 1 Content Right Credit Type: Course ACE ID: CBAP-0036 Version: 2 Organization: College Board Advanced Placement® (AP®) Examinations Location: Classroom-based Length: 2 hours 10 minutes ACE Credit Recommendation Period: 1/1/2019 - 12/31/2025 4/1/1994 - 12/31/2018 Credit Recommendation & Competencies Section 2 Content Section 2 Content Left Section 2 Content Right Level Credits (SH) Subject Lower-Division Baccalaureate 3 Microeconomics Students may receive a credit recommendation with a cut score of 3 or higher Description Section 3 Content Section 3 Content Left Section 3 Content Right Objective: The AP Microeconomics course provides students with an understanding of the principles of economics as they apply to individual decision-making units, including individual households and firms. The course examines the theory of consumer behavior, the theory of the firm, and the behavior of profit-maximizing firms under various market structures. Students evaluate the efficiency of the outcomes with respect to price, output, consumer surplus, and producer surplus. They examine the behaviors of households and businesses in factor markets, and learn how the determination of factor prices, wages, interest, and rent influence the distribution of income in a market economy. There are ample opportunities to consider instances in which private markets may fail to allocate resources efficiently and examine various public policy alternatives aimed at improving the efficiency of private markets. General Topics: : basic economic concepts The nature and functions of product markets Supply and demand Theory of consumer choice Production and costs Firm behavior and market structure Factor markets Derived factor demand Marginal revenue product Hiring decisions in the markets for labor and capital Market distribution of income Market failure and the role of government Externalities Public goods Public policy to promote competition Income distribution Instruction & Assessment Section 4 Content Section 4 Content Left Section 4 Content Right Supplemental Materials Section 5 Content Section 5 Content Left Section 5 Content Right Equivalencies Section 6 Content Section 6 Content Left Section 6 Content Right Button Content Rail Content 1 Other offerings from College Board Advanced Placement® (AP®) Examinations View All Courses College Credit Opportunities Page Content