Gl to every taking this test.</p>
Does anyone have a online textbook that they could give me or at least tell me what is a good textbook to use?</p>
Prep book?</p>
<p>I’m taking this online during the summer. excited hopefully its easy 
I also would like to know about the best prep book for it</p>
<p>5 Steps to a 5, and REA Crash Course helped me for Macro,
I think it will help me for Micro too :D</p>
<p>I think I ordered the 5 steps to a 5 one. Hopefully that will be good</p>
<p>5 Steps to a 5 is great. If you actually study it in advance I’m pretty sure you can get a 5… I crammed it in two days and still pulled off a 4 last year, so - yep.</p>
<p>I’m taking Economics online. It’s a combination of Macro and Micro but we’re doing Macro stuff first. Concepts are easy. Just too much reading because it’s online. I take it through Virtual High School.</p>
<p>Self-studied and wrote the AP Microecon last year, it was my first ever introduction to Econ, scored a 5. Princeton Review was really helpful, it explains stuff well. I als referred to 5 Steps to a 5 which has pretty nice explanations.</p>
<p>Are there online lectures/materials/websites for Micro/Macro?</p>
<p>I’m doing fine with the concepts so far. For those of you who have taken the exam, how are the essays? That’s the thing I have the least practice with. </p>
<p>Okay guys. I know this thread is old. But seeing as there’s no other AP Micro thread out there, I thought I would just say this now. The exam is coming up in three days, so Good Luck to all!</p>
<p>Can someone explain this question to me.
A pizzeria has a year remaining on a unbreakable lease, requiring a payment of 20,000. If the firm operates over the next year it will make 200,000 in revenue. It’s expenses, in addition to the lease, will be 190,000. Which of the following statements is true?
A. The firm should shutdown, since it will loose 20,000.
B. The firm should shut down to break even.
C. It should operate, since its loss is less than its fixed cost.
D. IT should operate, since it will profit 10,000.
E. It will break even, regardless if it operates or shuts down.</p>
<p>The firm should stay open. The 20k is a sunk cost. Nothing can change it. Shutting down is about variable costs. Once you can’t pay them, you shut down. The answer is D. It will make 10k. 200k - 190k. The sunk cost (fixed cost) is ignored. Although that is slightly misleading.</p>
<p>The answer is C according the practice exam.</p>
<p>Oh. That’s confusing. Better study more.</p>
<p>But that leads back to Revenue being more than variable costs then.</p>
<p>I’m a complete noob, but is the answer C because the question says the expenses “in addition to the lease” (20,000) is 190,000. So that means you have to add the 20,000 to the 190,000 costs which is a grand total of 210,000 for expenses. 200,000 expected revenue - 210,000 expenses = -10,000. However, -10,000 is less of a loss than the -20,000 from the lease if they discontinued operation from the start. Therefore, the loss of 10,000 is less than the 20,000 lease lost in the end. Does that make any sense or…?</p>
<p>Make sure you know the differences between profit and revenue. There is no way it can be D because the firm doesn’t profit. However, in the short term, it should operate, because if it does, it will only lose 10,000. The trade off is to shut down and lose 20,000. </p>
<p>So Peach you’re completely right, I just wish I could draw graphs on here :(</p>
<p>Cool, it’s comforting to know that I was able to deduce that without much prior practice problem experience! I find Micro easier than Macro, what about you guys?</p>
<p>I actually think Macro is easier than Micro; Macro is essentially the relationship between 5 graphs while Micro actually gets kind of confusing with the firms and markets.</p>
<p>I’ve never actually taken Macro, but I’m taking the Micro exam tomorrow. What topics does Macro cover?</p>
<p>macro is easier than micro imho</p>