AP Economics Chapter 1 Checklist
1. Define economics
2. Describe the “economic way of thinking” including definitions of marginal cost,
marginal benefits, and how these concepts may be used in decision making.
3. Explain the importance of ceterius paribus.
4. List 8 economic goals and give examples of conflicting and complementary
goals.
5. Differentiate between macro and micro economics.
6. Differentiate between positive and normative economics.
7. Use economic concepts to explain why someone who is normally a light eater at
a standard restaurant may become a glutton at a buffet style restaurant that
charges a single price for all you can eat.
8. The appendix to chapter one is to prepare students for reading, analyzing, and
constructing graphs. If this is not your strong suit please study this section and
be good with the appendix terms and concepts.
Chapter 2 Checklist
9. Explain the economizing problem
10. Identify types of economic resources and the types of income associated with
each.
11. differentiate between full employment and full production
12. explain the concepts of allocative and productive efficiencies
13. describe economic growth, full employment, and underemployment using the
production possibilities curve
14. explain the law of increasing opportunity costs/ why are there increasing costs?
15. summarize the relationship between investment and economic growth
16. highlight the main features of a market and command economy
17. identify the markets and the decision makers in a circle flow diagram
18. differentiate between product and resource markets
19. know any additional terms and concepts listed at the end of the chapter