AP® Macroeconomics vs. AP® Microeconomics
Understanding The Differences

2. Examples

   Do you wonder how AP Micro and AP Micro come to help in the real world? Below are a couple of scenarios where macro and microeconomics are commonly applied:

   • Microeconomics Scenario 1: Individual Consumer Choice and Budgeting

     Kate, a college student, has a limited budget and needs to decide how much of her income to allocate to different goods and services. She has to make choices between spending on textbooks, leisure activities, and groceries. Therefore, Kate considers factors like the marginal utility of each item, price levels, and her personal preferences to make the most of her limited resources.

     Microeconomic Analysis: Using microeconomic concepts like utility maximization, budget constraints, and the substitution effect, we can analyze Kate's behavior as a consumer and understand how she allocates resources based on preferences and budget limitations.

   • Microeconomics Scenario 2: Policy Decision

     A government agency is tasked with reducing carbon emissions to combat climate change. The agency must design policies encouraging organizations and firms to adopt cleaner technologies and reduce their carbon footprint.

     Microeconomic Analysis: Using Microeconomics, we can assess the efficacy of environmental policies and study how firms respond to incentives and regulations by considering factors like production costs, technological innovation, and market structures. Microeconomic tools help policymakers design policies that balance environmental goals with business efficiency.

   • Macroeconomics Scenario 1: Government Fiscal Policy

     A country faces an economic recession with high unemployment rates. The government decides to implement a stimulus package to boost economic activity and employment. They may increase government spending on infrastructure projects and cut taxes to stimulate consumer spending.

     Macroeconomic Analysis: This scenario requires macroeconomics to analyze how government spending and taxation changes can impact the economy on a broader scale. By using concepts like fiscal policy, aggregate demand, and the multiplier effect, policymakers can develop and manage the overall health of the country's economy.

   • Macroeconomics Scenario 2: International Trade and Exchange Rates

     A country is experiencing a trade deficit, where it imports more goods than it exports. The government aims to address this imbalance and boost domestic industries.

     Macroeconomic Analysis: In this scenario, macroeconomics helps analyze the impact of international trade on a country's overall economic health. Concepts such as balance of payments, exchange rates, and trade policies are essential in understanding how a nation's macroeconomic goals can be influenced by its interactions with the global economy. In this case, implementing trade tariffs or subsidies may encourage domestic production and reduce imports.

3. Test Format

   There are no differences in the test format between these two exams. The table below summarizes the test formats for AP Macro and AP Micro:

   		AP Microeconomics	AP Macroeconomics
   Time	Section I (MCQ)	1 hr 10 mins	1 hr 10 mins
   	Section II (FRQ)	1 hr	1 hr
   	Total	2 hrs 10 mins	2 hrs 10 mins
   No. of Questions	Section I (MCQ)	60	60
   	Section II (FRQ)	3	3
   	Total	63	63

   Note: A four-function calculator is permitted for use in both sections of the AP Macroeconomics and the AP Microeconomics exams.

4. Difficulty Levels

   Students often ask, "Is AP Macro easier than AP Micro, or is it the opposite?" To answer this question, let's address three major aspects that can help you gauge the difficulty levels of AP Macro and Micro:

   1. Course Content and Exam Format

      As discussed above, both AP Macro and AP Micro courses start with the basic principles of economics and then branch out to their specific subject areas. This means that while the courses vary in subject matter, they are both introductory, so their difficulty levels are similar.

      In terms of exam format, the test duration and the number of questions are identical, meaning you do not need extra skills or learning approaches to master one or the other. So, assessing their difficulty levels based on the course content and the exam format is not ideal.

   2. Score Distribution

      A look at the score distribution pattern of these exams can shed light on their difficulty levels. Usually, the rule of thumb is that an AP exam with a high success rate (3 or above) is considered relatively easier than the others. But exceptions do exist; therefore, we will now analyze what the score distributions for AP Macro and AP Micro indicate:

      AP Macroeconomics
      AP Score	% of Students 2023	% of Students 2022	% of Students 2021
      5	17.1	16.4 %	18.0 %
      4	22.9	20.0 %	19.6 %
      3	24.7	15.4 %	13.7 %
      2	21.6	15.1 %	15.7 %
      1	13.7	33.1 %	32.9 %
      3 & Above	64.7	51.8 %	51.3 %

      AP Microeconomics
      AP Score	% of Students 2023	% of Students 2022	% of Students 2021
      5	21.3	17.7	18.5
      4	26.0	22.5	24.0
      3	20.6	18.8	16.6
      2	19.9	16.9	17.0
      1	12.1	24.2	23.9
      3 & Above	68.0	59.0	59.1

      At first glance, it seems like more students aced the AP Micro exam than the AP Macro. However, AP Macro is more popular, with 148,836 students taking it in 2023, surpassing the 94,772 students who opted for the AP Micro exam in the same year. This implies that despite the seemingly lower success rates, approximately 65,000 students passed the AP Micro exam in 2023, whereas over 96,000 passed the AP Macro exam during the same period—exceeding the total number of students who took the AP Micro exam!

      But here's another thing to note. A more popular AP exam may also indicate that the subject is more generic, versatile, and less niche. Hence, there is a high chance that students who aren't primarily focused on pursuing a major in that subject (or those who are unprepared) might take the exam merely to secure an average score. Therefore, the marginally lower student success rate for AP Macro could result from more underprepared students opting for it.

      Considering these factors, and given the slight difference in success rate percentages of AP Macro (68 %) and AP Micro (65%), it is safe to assume that both subjects have a similar difficulty level.

      Ultimately, choosing one or the other boils down to your learning aptitude, areas of interest, and career goals. You can always audit both courses and take a practice test for each to evaluate your preference. In addition, it is always a good idea to consult your AP teacher and high school seniors to make an informed decision.

5. Relevance and interdependence

   AP Macroeconomics and AP Microeconomics share foundational concepts within the broader field of economics. Therefore, they offer credit and/or placement for college majors, including accounting, business administration, economics, finance, and more.

   In addition, each of these AP courses provides unique advantages for niche majors. A good AP Macro score can benefit majors such as community organization, international business, labor relations, and public policy analysis while excelling in AP Microeconomics, which aligns with careers in general business, entrepreneurship, and hotel management.

Should You Take AP Macroeconomics or Microeconomics First?

AP Macro and AP Micro kick off by diving into fundamental economic principles that lay the groundwork for studying economics. As with introductory courses, you can choose either based on your career interests and learning style.

Whichever course you take, create a dedicated study plan and take regular practice tests to improve your subject knowledge and test-taking skills. UWorld provides a thorough AP Macroeconomics course review with timed practice tests.

Can you take both AP Macroeconomics and AP Microeconomics?

Absolutely! You can take both AP Macroeconomics and AP Microeconomics. Many students choose to study both courses as they cover different aspects of economics and provide a more comprehensive understanding of economic principles and their applications.

Key Takeaways

1. AP Macroeconomics and AP Microeconomics cover two aspects of economics. So, consider your career interests before choosing between them.
2. Both exams have similar difficulty levels in terms of course content, skills, and exam format, so you can take either as your first AP economics course.
3. If you're planning a major in economics, finance, or business, consider taking AP Micro and Macro to boost your chances of getting placement and college credit.