The foundation for the rest of AP Micro. Scarcity, opportunity cost, the production possibilities curve, comparative advantage and trade, and the basics of supply, demand, and market equilibrium. Master this and the rest of the course gets a lot easier.
Seven topics from the College Board CED, in order.
Topic 1.1
Scarcity
Resources are limited while wants are unlimited, forcing individuals and societies to make choices.
Topic 1.2
Resource Allocation & Economic Systems
The three economic questions every system must answer, and how market, command, and mixed economies answer them.
Topic 1.3
Production Possibilities Curve
Modeling scarcity, opportunity cost, efficiency, and economic growth with the PPC.
Topic 1.4
Comparative Advantage & Trade
Absolute vs. comparative advantage, and why specialization and trade make both parties better off.
Topic 1.5
Demand
The law of demand, demand curves, and the determinants that shift demand.
Topic 1.6
Supply
The law of supply, supply curves, and the determinants that shift supply.
Topic 1.7
Market Equilibrium, Disequilibrium & Changes in Equilibrium
How supply and demand together set price and quantity, and what happens when either curve shifts.
About Unit 1
Unit 1 is the conceptual foundation for the rest of AP Microeconomics. You'll learn why scarcity forces every individual and society to make choices — and why every choice carries an opportunity cost. You'll also meet the production possibilities curve, a model that visualizes trade-offs and efficiency, and comparative advantage, the principle that explains why specialization and trade benefit everyone involved.
This unit is roughly 12–17% of the AP Micro exam and takes about 8–10 class periods. It introduces supply and demand at a basic level — Unit 2 goes much deeper with elasticity and surplus, so a solid grip on the law of demand, the law of supply, and how equilibrium price and quantity are determined here will make Unit 2 far easier.
The College Board ties Unit 1 to four Big Ideas that recur throughout the course:
Scarcity
Limited resources force trade-offs and opportunity costs
Markets & Prices
Markets allocate scarce resources through the price mechanism
Decision-Making
Rational decision-makers compare marginal costs and marginal benefits
Efficiency & Trade
Specialization based on comparative advantage increases total output