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Editorial Robert Franek, Senior VP, Publisher Laura Braswell, Senior Editor Selena Coppock, Senior Editor Calvin Cato, Editor Meave Shelton, Editor Production Michael Pavese, Publishing Director Kathy Carter, Project Editor Michelle Krapf, Editor Michael Mazzei, Editor Michael Breslosky, Associate Editor Stephanie Tantum, Associate Editor Kristen Harding, Associate Editor Vince Bonavoglia, Artist Danielle Joyce, Graphic Designer Random House Publishing Team Tom Russell, Publisher Nicole Benhabib, Publishing Manager Ellen L Reed, Production Manager Alison Stoltzfus, Managing Editor The Princeton Review, Inc 111 Speen Street Suite 550 Framingham, MA 01701 E-mail: editorialsupport@review.com Copyright © 2012 by The Princeton Review, Inc Cover art © Jonathan Pozniak All rights reserved Published in the United States by Random House, Inc., New York, and in Canada by Random House of Canada Limited, Toronto The Princeton Review is not affiliated with Princeton University eISBN: 978-0-307-94581-5 Editor: Liz Rutzel Production Editor: Stephanie Tantum Production Coordinator: Deborah A Silvestrini 2013 Edition v3.1 ACKNOWLEDGMENTS I would like to thank The Princeton Review team for their wonderful support during the creation of this book Centre College generously provided computer resources Peggy Pride, Clark Ross, and Claire Melican provided invaluable comments I thank my children Austin and Ally for making me laugh even when deadlines loomed, and for not pushing that one button on the plastic box while I worked None of this would have been possible without the kind support of my wife, Donna, who graciously tolerates my idealistic goal of showering the world with the joy of economics The Princeton Review would like to thank Holly Jones for her work updating this edition CONTENTS Cover Title Page Copyright Acknowledgments Introduction PART I: HOW TO CRACK THE SYSTEM About the AP Economics Exams Preparing for the AP Economics Exams Test-Taking Strategies PART II: ECONOMICS REVIEW Review of Microeconomic Concepts Basic Macroeconomic Concepts PART III: TESTS AND EXPLANATIONS Microeconomics Practice Test Microeconomics Answers and Explanations Macroeconomics Practice Test Macroeconomics Answers and Explanations Formula Sheet Index About the Author INTRODUCTION Click here to download a PDF of the Answer Form Navigate the admissions process with more guidance from the experts Ace the APs: Cracking the AP Biology Exam, 2013 Edition (Revised) 978-0-307-94633-1 • $18.99/$21.99 Can Ebook: 978-0-307-94580-8 Cracking the AP Calculus AB & BC Exams, 2013 Edition 978-0-307-94486-3 • $19.99/$23.99 Can Ebook: 978-0-307-94451-1 Cracking the AP Chemistry Exam, 2013 Edition 978-0-307-94488-7 • $18.99/$21.99 Can Ebook: 978-0-307-94452-8 Cracking the AP Economics Macro & Micro Exams, 2013 Edition 978-0-307-94509-9 • $18.00/$21.00 Can Ebook: 978-0-307-94581-5 Cracking the AP English Language & Composition Exam, 2013 Edition 978-0-307-94511-2 • $18.00/$21.00 Can Ebook: 978-0-307-94582-2 Cracking the AP English Literature & Composition Exam, 2013 Edition 978-0-307-94512-9 • $18.00/$21.00 Can Ebook: 978-0-307-94583-9 Cracking the AP Environmental Science Exam, 2013 Edition 978-0-307-94513-6 • $18.99/$21.99 Can Ebook: 978-0-307-94584-6 Cracking the AP European History Exam, 2013 Edition 978-0-307-94489-4 • $18.99/$21.99 Can Ebook: 978-0-307-94453-5 Cracking the AP Human Geography Exam, 2013 Edition 978-0-307-94514-3 • $18.00/$21.00 Can Cracking the AP Physics B Exam, 2013 Edition 978-0-307-94515-0 • $18.99/$21.99 Can Ebook: 978-0-307-94585-3 Cracking the AP Physics C Exam, 2013 Edition 978-0-307-94516-7 • $18.99/$21.99 Can Cracking the AP Psychology Exam, 2013 Edition 978-0-307-94517-4 • $18.00/$21.00 Can Ebook: 978-0-307-94586-0 Cracking the AP Spanish Exam with Audio CD, 2013 Edition 978-0-307-94518-1 • $24.99/$28.99 Can Cracking the AP Statistics Exam, 2013 Edition 978-0-307-94519-8 • $19.99/$23.99 Can Cracking the AP U.S Government & Politics Exam, 2013 Edition 978-0-307-94520-4 • $18.99/$21.99 Can Ebook: 978-0-307-94587-7 Cracking the AP U.S History Exam, 2013 Edition 978-0-307-94490-7 • $18.99/$21.99 Can Ebook: 978-0-307-94447-4 Cracking the AP World History Exam, 2013 Edition 978-0-307-94491-7 • $18.99/$21.99 Can Ebook: 978-0-307-94445-0 Essential AP Biology (flashcards) 978-0-375-42803-6 • $18.99/$20.99 Can Essential AP Psychology (flashcards) 978-0-375-42801-2 • $18.99/$20.99 Can Essential AP U.S Government & Politics (flashcards) 978-0-375-42804-3 • $18.99/$20.99 Can Essential AP U.S History (flashcards) 978-0-375-42800-5 • $18.99/$20.99 Can Essential AP World History (flashcards) 978-0-375-42802-9 • $18.99/$20.99 Can Get the scores you need: 11 Practice Tests for the SAT and PSAT, 2013 Edition 978-0-307-94481-8 • $24.99/$28.99 Can ACT or SAT? 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COSTS AND BENEFITS You might want to take an AP Economics course... grading scale, and outcomes for a representative AP exam appear below Although the grade calculations may differ to a small degree each year, you can apply these formulas to your scores on the practice
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