Looking for the best AP® Microeconomics review guide for the 2025 AP® exam? Then you’ve come to the right place!
In this post, we’ll go over the latest exam changes, what units are covered, practice resources to review, and wrap up with some AP® Micro study tips and things to remember.
Are you ready? Let’s get started.
What We Review
What’s the Format of the AP® Microeconomics Exam?
The AP® Microeconomics Exam includes two sections. The first section has 60 multiple-choice questions (MCQs). The second section is the free-response section (FRQs), which includes one long question and two short questions.
| Section | # of Questions | Time Limit | % of Overall Score |
|---|---|---|---|
| 1: Multiple Choice (MCQs) | 60 Questions | 1 Hour 10 Minutes | 66% of Exam Score |
| 2: Free Response (FRQs) | 1 Long Essay 2 Short Answer | 1 Hour (includes a 10-minute reading period) | 33% of Exam Score |
What Units are on the 2025 AP® Microeconomics Exam?
The 2025 AP® Microeconomics exam will cover topics from across all six units from the course and exam description. Use the following list to make sure you are prepared for any topic that may show up on your particular exam!
Unit 1: Basic Economic Concepts
- define resources and the cause(s) of their scarcity
- define how resource allocation is influenced by the economic system adopted by society
- define (using graphs as appropriate) the production possibilities curve (PPC) and related terms
- explain (using graphs as appropriate) how the production possibilities curve (PPC) illustrates opportunity costs, trade-offs, inefficiency, efficiency, and economic growth or contraction under various conditions
- calculate (using data from PPCs or tables as appropriate) opportunity cost
- define absolute advantage and comparative advantage
- determine (using data from PPCs or tables as appropriate) absolute and comparative advantage
- explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade
- calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade
- define opportunity cost and explain or calculate the opportunity costs associated with choices
- explain a decision by comparing total benefits and total costs (using a table or a graph when appropriate)
- calculate total benefits and total costs (using a table or graph where appropriate)
- define the key assumptions of consumer choice theory
- explain (using a table or graph as appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs
- calculate (using a table or a graph when appropriate) how a rational consumer’s decision making involves the use of marginal benefits and marginal costs
- define marginal analysis and related terms
- explain a decision using marginal analysis (using a table or a graph when appropriate)
Unit 2: Supply and Demand
- define (using graphs as appropriate) key terms and factors related to consumer decision making and the law of demand
- explain (using graphs as appropriate) the relationship between price and quantity demanded and how buyers respond to incentives and constraints
- explain (using graphs as appropriate) buyers’ responses to changes in incentives and constraints
- define (using graphs as appropriate) the law of supply
- explain (using graphs as appropriate) the relationship between price and quantity supplied
- explain (using graphs as appropriate) producers’ (sellers’) responses to changes in incentives and technology
- define measures of elasticity
- explain (using graphs where appropriate) measures of elasticity and the impact of a given price change on total revenue or total expenditure
- calculate (using data from a graph or a table as appropriate) measures of elasticity
- define (using graphs as appropriate) market equilibrium, consumer surplus, and producer surplus
- explain (using graphs as appropriate) how equilibrium price, quantity, consumer surplus, and producer surplus for a good or service are determined
- calculate (using data from a graph or table as appropriate) areas of consumer surplus and producer surplus at equilibrium
- define a surplus and shortage
- explain (using graphs where appropriate) how changes in underlying conditions and shocks to a competitive market can alter price, quantity, consumer surplus, and producer surplus
- calculate (using data from a graph or table as appropriate) changes in price, quantity, consumer surplus, and producer surplus in response to changes in market conditions or market disequilibrium
- define forms of government price and quantity intervention
- explain (using graphs where appropriate) how government policies alter consumer and producer behaviors that influence incentives and therefore affect outcomes
- calculate (using data from a graph or table where appropriate) changes in market outcomes resulting from government policies
- define tariffs and quotas
- explain (using graphs where appropriate) how markets are affected by public policy related to international trade
- calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from public policy related to international trade
Unit 3: Production, Cost, and the Perfect Competition Model
- define (using graphs where appropriate) key terms and concepts relating to production and cost
- explain (using graphs where appropriate) how production and cost are related in the short run and long run
- calculate (using data from a graph or table as appropriate) the various measures of productivity and short-run and long-run costs
- define the different types of profit
- explain how firms respond to profit opportunities
- calculate a firm’s profit or loss
- define (using graphs or data as appropriate) the profit-maximizing rule
- explain (using a graph or data as appropriate) the profit-maximizing level of production
- explain (using graphs or data where appropriate) firms’ short-run decisions to produce positive output levels, or long-run decisions to enter or exit a market in response to profit-making opportunities
- define (using graphs as appropriate) the characteristics of perfectly competitive markets and efficiency
- explain (using graphs where appropriate) equilibrium and firm decision making in perfectly competitive markets and how prices in perfectly competitive markets lead to efficient outcomes
- calculate (using data from a graph or table as appropriate) economic profit (loss) in perfectly competitive markets
Unit 4: Imperfect Competition
- define (using graphs where appropriate) the characteristics of imperfectly competitive markets and inefficiency
- explain (using graphs where appropriate) equilibrium, firm decision making, consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets and why prices in imperfectly competitive markets cannot be relied on to coordinate the actions of all possible market participants and can lead to inefficient outputs
- calculate (using data from a graph or table as appropriate) areas of consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets
- define (using tables as appropriate) key terms, strategies, and concepts relating to oligopolies and simple games
- explain (using tables as appropriate) strategies and equilibria in simple games and the connections to theoretical behaviors in various oligopoly market and non-market settings
- calculate (using tables as appropriate) the incentive sufficient to alter a player’s dominant strategy
Unit 5: Factor Markets
- define (using graphs where appropriate) key terms and concepts relating to factor markets
- explain (using graphs where appropriate) the relationship between factors of production, firms, and factor prices
- calculate (using data from a graph or table where appropriate) the marginal revenue product and marginal resource cost
- explain (using graphs where appropriate) firms’ and factors’ responses to changes in incentives and constraints
- define (using graphs as appropriate) the characteristics of perfectly competitive factor markets
- explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets
- calculate (using data from a graph or table where appropriate) measures representing the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets
- define (using graphs as appropriate) the characteristics of monopsonistic markets
- explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets
- calculate (using data from a graph or table where appropriate) measures representing the profit maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets
Unit 6: Market Failure and the Role of Government
- define social efficiency
- explain (using graphs where appropriate) why resource allocation in perfectly competitive markets is socially efficient
- explain (using graphs where appropriate) how private incentives can lead to actions by rational agents that are socially undesirable (inefficient) market outcomes
- explain equilibrium allocations in imperfect markets relative to efficient allocations (using graphs where appropriate) and why these markets are inefficient
- calculate (using graphs where appropriate) the deadweight loss resulting from the production of a non-efficient quantity
- define externalities
- explain (using graphs where appropriate) how in the presence of externalities, private markets do not take into consideration social costs or social benefits
- explain (using graphs where appropriate) how public policies address positive or negative externalities
- define whether goods are rival and/or excludable
- explain how the nature of rival and/ or excludable goods influences the behavior of individuals and groups
- define government policy interventions in imperfect markets
- explain (using graphs where appropriate) how government policies can alter market outcomes in perfectly and imperfectly competitive markets
- calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from government policies in perfectly competitive and imperfectly competitive markets
- define measures of economic inequality in income and wealth
- explain sources of income and wealth inequality
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When is the 2025 AP® Microeconomics exam?
The 2025 AP® Microeconomics exam will be given as a Hybrid Digital exam. The 2025 AP® Microeconomics exam will take place on:
Monday, May 5, 2025, at 12pm local time
Curious about when other AP® exams are happening in 2025? View or download the complete AP® exam schedule here.
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Are calculators allowed on the 2025 AP® Microeconomics exam?
Yes! Starting with the 2023 exam, a four-function calculator is permitted for use on both sections of the AP® Microeconomics exam.
A four-function calculator is allowed. Scientific or graphing calculators and calculators with storage capabilities are not allowed.
For more info, check out the official calculator policy here.
Test Your Understanding: AP® Microeconomics Multiple Choice Practice Questions
Use the following links to Albert’s AP® Microeconomics course to see if you truly understand each of the units:
- Unit 1: Basic Economic Concepts
- Unit 2: Supply and Demand
- Unit 3: Production, Cost, and the Perfect Competition Model
- Unit 4: Imperfect Competition
- Unit 5: Factor Markets
- Unit 6: Market Failure and the Role of Government
2025 AP® Microeconomics Exam FRQ Practice
There are two types of FRQs on the AP® Micro exam: short answers and long answers.
Examples of Short Free-Response Questions
Example: 2019 Questions 2 and 3
Scoring: 2019 Questions 2 and 3 Scoring Sheet
Example: 2018 Questions 2 and 3
Scoring: 2018 Questions 2 and 3 Scoring Sheet
Examples of Long Free-Response Question
Example: 2019 Question 1
Scoring: 2019 Question 1 Scoring Sheet
Example: 2018 Question 1
Scoring: 2018 Question 1 Scoring Sheet
More Practice FRQs for AP® Microeconomics
For more examples of previous FRQs, check out the College Board archive for AP® Microeconomics.
Get FRQs with included sample responses with a license to Albert’s AP® Microeconomics.
To stay up to date and adjust your study plan accordingly, read our How to Study for Online AP® Exams guide.
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AP® Microeconomics Tips and Review Resources
AP® Microeconomics can be pretty dry when it comes to content. Video tutorials reviewing concepts can be helpful to supplement your learning and review.
Below, we’ve linked to a handful of sites we think feature helpful course notes or videos to help you master the core economic concepts tested. The best way to use these resources is to go through a unit and then check for understanding on Albert. When you feel confident, use past FRQs to practice your free-response answers.
- Micro Mondays & FRQ Review: Fun fact, before Albert, we were called Learnerator. Back in the day, we recorded walkthroughs of some of the past released FRQs to help students understand each question, piece-by-piece. These videos are still very much relevant today.
- AP® Study Notes’ AP® Microeconomics: They don’t currently have anything for Macroeconomics, but this site features chapter outlines from Barron’s review book.
- Khan Academy’s Economics Playlist: This playlist includes 122 videos breaking down many core topics covered on both the AP® Macroeconomics and AP® Microeconomics exams.
Additional resource ideas for AP® Microeconomics:
- Read through the information for Units 1-6 in the AP® Microeconomics Course and Exam Description released by the College Board. While it seems daunting, this comprehensive guide clearly outlines the objectives you will be tested on and indicates how you will be tested on this information. It also includes sample exam questions for further practice.
- Check out the AP® Microeconomics Exam Tips on the College Board website for even more tips for the exam!
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Summary: The Best AP® Microeconomics Review Guide of 2025
We’ve covered a lot in this review guide for the AP® Microeconomics exam. Here are some of the key takeaways:
- The AP® Microeconomics exam includes 60 MCQs and 3 FRQs.
- AP® Microeconomics will include topics from all units (Units 1 through 6).
- Use Albert or a comparable practice tool to check your understanding of the key concepts that will appear on this year’s test.
- Refer to the FRQs we’ve selected, as they represent some of the FRQs that will appear on this year’s exam.
