Are flashcards effective for AP Microeconomics?

Yes. Flashcards use active recall — retrieving an answer from memory — which research shows is one of the most effective study methods, especially in short, spaced sessions. Because AP Micro rewards instant recall of definitions, formulas, and graph relationships, the cards are an efficient way to make that knowledge automatic.

What topics do the AP Microeconomics flashcards cover?

All six units: opportunity cost and the PPC; supply, demand, elasticity, and surplus; production, cost curves, and the perfect competition model; monopoly, monopolistic competition, and oligopoly; factor markets and marginal revenue product; and externalities, public goods, and government intervention.

How should I study with these AP Microeconomics flashcards?

Lead with the highest-weighted units — Unit 2 (Supply and Demand) and Unit 3 (Production, Cost and Perfect Competition), which together are roughly half the exam. Mix the modes: flip to learn, type to test recall, match for speed, and quiz to check yourself before working full practice questions and re-drawing the graphs.

Are the AP Microeconomics flashcards free?

Yes — 100% free, all four study modes, no paywall and no sign-up.

Do these flashcards match the current AP Microeconomics course?

Yes. The cards are organized to the College Board's AP Microeconomics Course and Exam Description and its six units, and reflect the current two-section format (60 multiple-choice questions and 3 free-response questions) scored 1 to 5.

The basic economic problem: limited resources against unlimited wants, forcing every society to make choices.

The value of the next-best alternative given up when a choice is made.

Comparing the additional benefit and additional cost of one more unit of an activity; do it while MB ≥ MC.

The additional satisfaction or value from consuming one more unit of a good.

Giving up one thing to get another because resources are scarce.

Production possibilities curve (PPC)

A graph of the maximum combinations of two goods an economy can produce with resources fully and efficiently used.

An inefficient combination — resources are unemployed or misused.

Point outside the PPC

An unattainable combination given current resources and technology.

Why the PPC bows outward

Because resources aren't equally suited to both goods, opportunity cost increases as you make more of one.

Constant opportunity cost

A straight-line PPC — resources are equally productive in both goods.

Economic growth on the PPC

An outward shift of the whole curve from more resources or better technology.

Producing more of a good than another producer with the same resources.

Comparative advantage

Producing a good at a lower opportunity cost than another producer.

Who should specialize?

The producer with the comparative advantage (lowest opportunity cost), not necessarily the absolute advantage.

Both parties can consume beyond their own PPC when each specializes in its comparative advantage and trades.

The rate at which two goods are exchanged; mutually beneficial when it lies between the two producers' opportunity costs.

Factors of production

The resources used to produce goods: land, labor, capital, and entrepreneurship.

The study of individual decision-makers — consumers, firms, and specific markets.

The study of the economy as a whole: GDP, inflation, unemployment, and policy.

Positive vs normative economics

Positive describes what is (testable); normative prescribes what ought to be (value judgment).

Rational self-interest

The assumption that decision-makers weigh costs and benefits to make themselves as well off as possible.

A good whose demand rises when income rises (positive income elasticity).

A good whose demand falls when income rises (negative income elasticity).

Concentrating production on the goods one makes at lowest opportunity cost, then trading.

The additional output from adding one more unit of an input.

The satisfaction a consumer gets from a good or service.

A cost already incurred that cannot be recovered; it should not affect marginal decisions.

Manufactured goods used to produce other goods, such as machines and tools.

Allocative efficiency

Producing the combination of goods most valued by society, where marginal benefit equals marginal cost.

As price rises, quantity demanded falls (and vice versa), all else equal — the demand curve slopes down.

As price rises, quantity supplied rises (and vice versa), all else equal — the supply curve slopes up.

Change in quantity demanded

A movement along a fixed demand curve caused by a change in the good's own price.

A shift of the whole demand curve caused by a non-price determinant.

Determinants of demand

Income, tastes, prices of related goods, expectations, and number of buyers.

Determinants of supply

Input prices, technology, prices of related goods, expectations, number of sellers, taxes and subsidies.

Goods used in place of each other; a price rise in one raises demand for the other (positive cross-price elasticity).

Goods used together; a price rise in one lowers demand for the other (negative cross-price elasticity).

The price and quantity where quantity demanded equals quantity supplied and the market clears.

Surplus (excess supply)

When price is above equilibrium, quantity supplied exceeds quantity demanded; price falls.

Shortage (excess demand)

When price is below equilibrium, quantity demanded exceeds quantity supplied; price rises.

When both curves shift, either equilibrium price or quantity is indeterminate (depends on relative shift sizes).

Price elasticity of demand

% change in quantity demanded ÷ % change in price; measures responsiveness to price.

Elasticity greater than 1 in absolute value — quantity is very responsive to price.

Elasticity less than 1 in absolute value — quantity is not very responsive to price.

Elasticity equal to 1; total revenue is at its maximum.

Your FREE AP Microeconomics Flashcards 2026 – 200+ Cards

Realistic AP Microeconomics flashcards across all six units — flip, match, type, and quiz yourself on concepts, curves, and market structures.

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AP Microeconomics Flashcards

Scarcity: The basic economic problem: limited resources against unlimited wants, forcing every society to make choices.
Opportunity cost: The value of the next-best alternative given up when a choice is made.
Marginal analysis: Comparing the additional benefit and additional cost of one more unit of an activity; do it while MB ≥ MC.
Marginal benefit: The additional satisfaction or value from consuming one more unit of a good.
Trade-off: Giving up one thing to get another because resources are scarce.
Production possibilities curve (PPC): A graph of the maximum combinations of two goods an economy can produce with resources fully and efficiently used.
Point inside the PPC: An inefficient combination — resources are unemployed or misused.
Point outside the PPC: An unattainable combination given current resources and technology.
Why the PPC bows outward: Because resources aren't equally suited to both goods, opportunity cost increases as you make more of one.
Constant opportunity cost: A straight-line PPC — resources are equally productive in both goods.
Economic growth on the PPC: An outward shift of the whole curve from more resources or better technology.
Absolute advantage: Producing more of a good than another producer with the same resources.
Comparative advantage: Producing a good at a lower opportunity cost than another producer.
Who should specialize?: The producer with the comparative advantage (lowest opportunity cost), not necessarily the absolute advantage.
Gains from trade: Both parties can consume beyond their own PPC when each specializes in its comparative advantage and trades.
Terms of trade: The rate at which two goods are exchanged; mutually beneficial when it lies between the two producers' opportunity costs.
Factors of production: The resources used to produce goods: land, labor, capital, and entrepreneurship.
Microeconomics: The study of individual decision-makers — consumers, firms, and specific markets.
Macroeconomics: The study of the economy as a whole: GDP, inflation, unemployment, and policy.
Positive vs normative economics: Positive describes what is (testable); normative prescribes what ought to be (value judgment).
Rational self-interest: The assumption that decision-makers weigh costs and benefits to make themselves as well off as possible.
Normal good: A good whose demand rises when income rises (positive income elasticity).
Inferior good: A good whose demand falls when income rises (negative income elasticity).
Specialization: Concentrating production on the goods one makes at lowest opportunity cost, then trading.
Marginal product: The additional output from adding one more unit of an input.
Utility: The satisfaction a consumer gets from a good or service.
Sunk cost: A cost already incurred that cannot be recovered; it should not affect marginal decisions.
Capital (economics): Manufactured goods used to produce other goods, such as machines and tools.
Allocative efficiency: Producing the combination of goods most valued by society, where marginal benefit equals marginal cost.
Law of demand: As price rises, quantity demanded falls (and vice versa), all else equal — the demand curve slopes down.
Law of supply: As price rises, quantity supplied rises (and vice versa), all else equal — the supply curve slopes up.
Change in quantity demanded: A movement along a fixed demand curve caused by a change in the good's own price.
Change in demand: A shift of the whole demand curve caused by a non-price determinant.
Determinants of demand: Income, tastes, prices of related goods, expectations, and number of buyers.
Determinants of supply: Input prices, technology, prices of related goods, expectations, number of sellers, taxes and subsidies.
Substitute goods: Goods used in place of each other; a price rise in one raises demand for the other (positive cross-price elasticity).
Complementary goods: Goods used together; a price rise in one lowers demand for the other (negative cross-price elasticity).
Equilibrium: The price and quantity where quantity demanded equals quantity supplied and the market clears.
Surplus (excess supply): When price is above equilibrium, quantity supplied exceeds quantity demanded; price falls.
Shortage (excess demand): When price is below equilibrium, quantity demanded exceeds quantity supplied; price rises.
Double shift: When both curves shift, either equilibrium price or quantity is indeterminate (depends on relative shift sizes).
Price elasticity of demand: % change in quantity demanded ÷ % change in price; measures responsiveness to price.
Elastic demand: Elasticity greater than 1 in absolute value — quantity is very responsive to price.
Inelastic demand: Elasticity less than 1 in absolute value — quantity is not very responsive to price.
Unit elastic demand: Elasticity equal to 1; total revenue is at its maximum.
Perfectly inelastic demand: Elasticity = 0; a vertical demand curve (quantity doesn't change with price).
Perfectly elastic demand: Elasticity = infinity; a horizontal demand curve (any price change ends all sales).
Determinants of elasticity: Number of substitutes, necessity vs luxury, share of income, and time horizon.
Elasticity and total revenue: Elastic: a price cut raises total revenue. Inelastic: a price rise raises total revenue.
Cross-price elasticity: % change in demand for one good ÷ % change in price of another; positive = substitutes, negative = complements.
Income elasticity of demand: % change in demand ÷ % change in income; positive = normal good, negative = inferior good.
Price elasticity of supply: % change in quantity supplied ÷ % change in price; higher the more time producers have to adjust.
Consumer surplus: The difference between willingness to pay and price paid; the area below demand and above price.
Producer surplus: The difference between price received and the minimum sellers would accept; area above supply and below price.
Total surplus: Consumer surplus plus producer surplus; maximized at the free-market equilibrium.
Deadweight loss: The loss of total surplus when the market isn't at its efficient quantity.
Price ceiling: A legal maximum price; binding only if set below equilibrium, where it creates a shortage.
Price floor: A legal minimum price; binding only if set above equilibrium, where it creates a surplus.
Binding price control: A control that actually changes the market outcome (ceiling below, or floor above, equilibrium).
Excise tax: A per-unit tax on a good that shifts the supply curve up by the tax amount, raising price and lowering quantity.
Tax incidence: How the burden of a tax is split between buyers and sellers; the more inelastic side bears more of it.
Subsidy: A per-unit government payment that shifts supply down, lowering price and raising quantity.
Marginal utility: The additional satisfaction from consuming one more unit of a good.
Law of diminishing marginal utility: Each additional unit consumed gives less added satisfaction than the one before.
Utility-maximizing rule: Allocate spending so the marginal utility per dollar (MU ÷ P) is equal across all goods.
Demand curve and marginal utility: The demand curve slopes down partly because of diminishing marginal utility.
Income effect: As a good's price falls, your real purchasing power rises, so you can buy more.
Substitution effect: As a good's price falls, you switch toward it from now-relatively-pricier substitutes.
Normal vs inferior on income change: A rise in income increases demand for normal goods and decreases demand for inferior goods.
Shift vs movement: Own-price change = movement along the curve; any other determinant = shift of the curve.
Quantity demanded: The amount buyers are willing and able to buy at a specific price.
Total revenue: Price times quantity (TR = P × Q).
Effect of a binding price ceiling: A persistent shortage, possible black markets, and deadweight loss.
Short run: A period in which at least one input (usually capital) is fixed.
Long run: A period in which all inputs are variable and firms can enter or exit.
Fixed cost: A cost that does not change with output (e.g., rent); exists only in the short run.
Variable cost: A cost that changes with output (e.g., labor, materials).
Total cost: TC = total fixed cost + total variable cost.
Average total cost (ATC): Total cost divided by quantity (TC ÷ Q); U-shaped in the short run.
Average variable cost (AVC): Variable cost divided by quantity (TVC ÷ Q).
Average fixed cost (AFC): Fixed cost divided by quantity (TFC ÷ Q); always falls as output rises.
Marginal cost (MC): The added cost of producing one more unit: change in total cost ÷ change in quantity.
MC and the average curves: MC passes through the minimum of both ATC and AVC.
Why MC eventually rises: Diminishing marginal returns — added inputs add less output, so each unit costs more.
Law of diminishing marginal returns: As a variable input is added to fixed inputs, marginal product eventually declines.
Total product: The total output produced with a given amount of inputs.
Marginal product: The extra output from one more unit of a variable input.
Average product: Total product divided by the quantity of the variable input.
Economies of scale: Long-run average total cost falls as output rises (often from specialization).
Diseconomies of scale: Long-run average total cost rises as output rises (often from coordination problems).
Constant returns to scale: Long-run average total cost is flat as output rises.
Profit maximization rule: Produce the quantity where marginal revenue equals marginal cost (MR = MC).
Marginal revenue (MR): The added revenue from selling one more unit.
Accounting profit: Total revenue minus explicit (out-of-pocket) costs.
Economic profit: Total revenue minus explicit AND implicit (opportunity) costs.
Normal profit: Zero economic profit — the firm earns just enough to keep resources in their current use.
Implicit cost: The opportunity cost of using resources the firm already owns.
Perfect competition: Many firms, identical products, free entry/exit, and perfect information; firms are price takers.
Price taker: A firm too small to affect market price; it faces a horizontal demand curve.
Perfectly competitive firm's demand: Horizontal at the market price, so P = MR = AR.
PC firm's profit-max output: Produce where P = MC (since P = MR for a price taker).
Shutdown rule (short run): Shut down if price is below the minimum of average variable cost (P < AVC).
Shutdown point: The minimum point of the AVC curve.
Break-even point: The minimum point of the ATC curve, where economic profit is zero.
Short-run profit for a PC firm: Earned when P > ATC at the profit-maximizing quantity.
Short-run loss for a PC firm: Incurred when AVC < P < ATC; the firm keeps operating to cover some fixed costs.
Long-run equilibrium in PC: Free entry/exit drives economic profit to zero: P = MR = MC = minimum ATC.
Productive efficiency: Producing at the lowest possible cost (minimum ATC) — achieved by PC in the long run.
Allocative efficiency in PC: Achieved where P = MC, so the value of the last unit equals its cost.
Entry effect on price: New firms increase market supply, lowering price until profits disappear.
Exit effect on price: Firms leaving decrease market supply, raising price until losses disappear.
Firm vs market supply: Market supply is the horizontal sum of all firms' marginal cost curves above AVC.
Explicit cost: A direct, out-of-pocket payment for resources (wages, rent, materials).
Why ATC is U-shaped: Falling average fixed cost dominates at low output; rising marginal cost dominates at high output.
Profit per unit: Price minus average total cost (P − ATC) at the profit-maximizing quantity.
MR for a price taker: Equals the market price, because each extra unit sells at that same price.
Imperfect competition: Markets where firms have some market power and face a downward-sloping demand curve.
Market power: The ability of a firm to influence the price of its product.
Monopoly: A market with a single seller of a product with no close substitutes and high barriers to entry.
Barriers to entry: Obstacles like economies of scale, patents, control of a resource, or legal restrictions that block new firms.
Price maker: A firm that sets its price by choosing output along a downward-sloping demand curve.
MR below price for a monopoly: Because it must lower price on all units to sell more, marginal revenue is below price.
Monopoly output and price: Produce where MR = MC, then charge the higher price on the demand curve.
Monopoly inefficiency: Output is restricted and price exceeds marginal cost, causing deadweight loss.
Natural monopoly: An industry where one firm can supply the whole market at lower cost due to large economies of scale.
Price discrimination: Charging different buyers different prices for the same good based on willingness to pay.
Conditions for price discrimination: Market power, ability to separate buyers, and prevention of resale.
Perfect price discrimination: Charging each buyer their maximum willingness to pay; captures all surplus, no deadweight loss.
Monopolistic competition: Many firms selling differentiated products with free entry and some pricing power.
Product differentiation: Making a product distinct (brand, quality, location) to gain some market power.
Monopolistic competition long run: Entry drives economic profit to zero; firms produce with excess capacity.
Excess capacity: Producing below the minimum-ATC output, so the firm isn't productively efficient.
Oligopoly: A market dominated by a few interdependent firms.
Interdependence: Each oligopolist's best choice depends on what rivals are expected to do.
Game theory: The study of strategic decisions among interdependent players.
Payoff matrix: A table showing each player's outcomes for every combination of strategies.
Dominant strategy: A strategy that is best for a player regardless of what the other does.
Nash equilibrium: An outcome where no player can do better by changing strategy alone.
Prisoner's dilemma: A game where individually rational choices lead to a jointly worse outcome.
Collusion: Firms cooperating to set price or output like a monopoly; often illegal and unstable.
Cartel: A group of firms that collude to act as a single monopolist (e.g., OPEC).
Why cartels break down: Each member has an incentive to cheat by producing more, undermining the agreement.
Monopoly demand vs MR: The demand (average revenue) curve lies above the marginal revenue curve.
Allocative inefficiency of market power: Price exceeds marginal cost, so society would gain from more output that isn't produced.
Antitrust laws: Laws that limit market power and prohibit anti-competitive practices like collusion.
Single-price monopoly profit: Earned where P > ATC at the quantity where MR = MC.
Patents and monopoly: Government grants of temporary exclusive rights that create legal barriers to entry.
Kinked demand curve: A model of oligopoly pricing where rivals match price cuts but not price increases.
Comparing structures: From most to least competitive: perfect competition, monopolistic competition, oligopoly, monopoly.
Deregulation of a monopoly: Removing legal barriers to allow competition and lower prices.
Factor market: A market where firms buy resources (labor, land, capital) and households sell them.
Derived demand: Demand for an input that comes from demand for the product it helps produce.
Marginal revenue product (MRP): The extra revenue from hiring one more unit of a resource: marginal product × marginal revenue.
MRP as factor demand: A firm's MRP curve is its demand curve for that input.
Marginal resource cost (MRC): The additional cost of hiring one more unit of a resource.
Hiring rule: Hire each unit of a factor up to where MRP equals MRC.
MRP = MRC vs MR = MC: The factor-market hiring rule is the twin of the product-market output rule.
Competitive labor market wage: Set where market labor supply meets market labor demand; each firm is a wage taker.
Firm's hiring in a competitive labor market: Hire workers up to where MRP equals the market wage.
Shifts in labor demand: Caused by changes in product price, productivity, or the prices of other inputs.
Shifts in labor supply: Caused by changes in population, preferences, wages in other jobs, or immigration.
Monopsony: A market with a single buyer of a resource, often labor.
Monopsony outcome: Hires fewer workers and pays a lower wage than a competitive labor market.
MRC under monopsony: Rises faster than the wage, because hiring one more worker raises the wage for all workers.
Marginal product of labor: The extra output produced by one more worker.
Why labor demand slopes down: Diminishing marginal product lowers MRP as more workers are hired.
Least-cost rule: Hire inputs so the marginal product per dollar (MP ÷ P) is equal across all inputs.
Profit-maximizing input rule: Employ each input until its MRP equals its price (MRP = MRC for every input).
Economic rent: Payment to a factor above the minimum needed to keep it in its current use.
Determinants of wage differences: Productivity, human capital, working conditions, and skill scarcity.
Human capital: The knowledge and skills workers gain through education and experience that raise productivity.
Capital market: Where firms acquire physical or financial capital; demand depends on the return relative to cost.
Labor as a derived demand: Firms hire workers not for their own sake but to produce salable output.
Effect of higher product price on labor demand: Raises MRP, shifting the firm's labor demand curve right.
Wage taker: A firm in a competitive labor market that must pay the going market wage.
Market failure: When a free market fails to allocate resources efficiently on its own.
Externality: A cost or benefit imposed on third parties not part of a transaction.
Negative externality: A cost on third parties (e.g., pollution); the market overproduces.
Positive externality: A benefit to third parties (e.g., vaccination); the market underproduces.
Marginal social cost (MSC): Marginal private cost plus any external cost; relevant for negative externalities.
Marginal social benefit (MSB): Marginal private benefit plus any external benefit; relevant for positive externalities.
Efficient quantity: Where marginal social benefit equals marginal social cost (MSB = MSC).
Pigouvian tax: A per-unit tax equal to the external cost that corrects a negative externality.
Corrective subsidy: A per-unit subsidy equal to the external benefit that corrects a positive externality.
Coase theorem: If property rights are clear and bargaining is costless, private parties can solve externalities themselves.
Public good: A good that is non-excludable and non-rival, like national defense.
Non-excludable: You cannot prevent non-payers from using the good.
Non-rival: One person's use does not reduce the amount available to others.
Free-rider problem: People enjoy a good without paying, so markets underprovide public goods.
Private good: A good that is both excludable and rival in consumption.
Common resource: A good that is non-excludable but rival, prone to overuse.
Tragedy of the commons: The overuse and depletion of a common resource because no one bears its full cost.
Lorenz curve: A graph showing the cumulative share of income earned by cumulative shares of the population.
Gini coefficient: A 0-to-1 measure of income inequality; 0 is perfect equality, 1 is maximum inequality.
Progressive tax: A tax that takes a larger percentage of income as income rises.
Regressive tax: A tax that takes a larger percentage of income from low earners than high earners.
Proportional tax: A tax that takes the same percentage of income at all income levels (flat tax).
Transfer payment: A government payment (like welfare) for which no good or service is exchanged.
Antitrust regulation: Government action to limit monopoly power and promote competition.
Why monopoly is a market failure: Restricted output and price above marginal cost create deadweight loss.

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By Career EmployerUpdated Jun 20, 2026

200+ free AP Microeconomics flashcards — 4 ways to study

AP Microeconomics Flashcard of the DayNew daily

The classic card. Do you know this one?

Click Study Flashcards above to open the flashcard hub — over 200 AP Microeconomics cards you can flip, match, type, or quiz yourself on. Every card is drawn from the College Board’s six units, so you study exactly what the exam measures.^[1] Pair them with our free practice test and study guide.

AP Microeconomics is one of the 17 AP exams — explore our AP flashcards to compare and prep across the whole family.

AP Microeconomics Flashcard Study Modes

Most flashcard sites give you one thing: a card to flip. Ours has four modes so you can both learn the material and prove you know it — the difference between recognizing an answer and recalling it under exam pressure.

Flip (Study) — the classic card. Flip term ↔ definition, shuffle the deck, and mark each card “Got it” or “Still learning.”
Match (Game) — a timed game: pair each term to its definition as fast as you can. Great for cementing definitions, formulas, and market-structure traits.
Type (Recall) — read the definition and type the term. Typing forces true active recall instead of passive recognition.
Quiz (Test) — multiple-choice questions generated from the cards, so you self-test exactly like exam day.

Free AP Microeconomics flashcards from Career Employer — active recall for all six College Board units

Why Flashcards Work for AP Microeconomics

Flashcards aren’t busywork — they’re built on active recall: pulling an answer out of memory strengthens it far more than re-reading notes. Pair that with spacing — short sessions across several days rather than one cram — and you retain more in less time.

AP Microeconomics rewards instant recall of definitions, formulas like MR = MC, and the relationships between curves.^[2] Spaced flashcards are the most efficient way to make that knowledge automatic, so that on exam day your effort goes into reasoning and graphing, not remembering what a term means. Used alongside our practice test and study guide, they turn review time into measurable progress.

AP Microeconomics Flashcards by Unit

The cards are organized by the six College Board units. Drill the highest-weighted ones first — Supply and Demand (Unit 2) and Production, Cost and Perfect Competition (Unit 3) together are roughly half the exam:^[1]

AP Microeconomics flashcards by unit
Unit	Content
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

How to Get the Most Out of These Flashcards

Lead with the heavy units. Units 2 and 3 are about half the exam — start there, then fill in Units 1, 4, 5, and 6.
Master the staples. Use Match and Type to lock in MR = MC, the cost formulas, elasticity rules, the four market structures, and the externality fixes.
Use Type and Quiz, not just Flip. Recognizing the right answer is easy; recalling and choosing it under pressure is the real test.
Then prove it. When the cards feel easy, confirm with the full practice test and re-draw each unit’s key graphs from memory before exam day.

AP Microeconomics Flashcards FAQ

Over 200 free AP Microeconomics flashcards, organized across all six College Board units — Basic Economic Concepts, Supply and Demand, Production, Cost and Perfect Competition, Imperfect Competition, Factor Markets, and Market Failure and the Role of Government. They're free with no account required.

References

1.College Board. “AP Microeconomics Course and Exam Description (CED).” College Board. ↑
2.College Board. “AP Microeconomics — AP Students.” College Board. ↑
3.College Board. “AP Microeconomics Course — AP Central.” College Board. ↑

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