Test Your Understanding: AP Microeconomics Multiple Choice Practice Questions, 2022 AP Microeconomics Exam FRQ Practice, More Practice FRQs for AP Microeconomics, AP Microeconomics Tips and Review Resources, Summary: The Best AP Microeconomics Review Guide of 2022, AP Microeconomics Course and Exam Description, Quickly review popular literary works like, 1 Hour (includes a 10-minute reading period), explain (using graphs where appropriate) why resource allocation in perfectly competitive markets is socially efficient, explain (using graphs where appropriate) how private incentives can lead to actions by rational agents that are socially undesirable (inefficient) market outcomes, explain equilibrium allocations in imperfect markets relative to efficient allocations (using graphs where appropriate) and why these markets are inefficient, calculate (using graphs where appropriate) the deadweight loss resulting from the production of a non-efficient quantity, explain (using graphs where appropriate) how in the presence of externalities, private markets do not take into consideration social costs or social benefits, explain (using graphs where appropriate) how public policies address positive or negative externalities, define whether goods are rival and/or excludable, explain how the nature of rival and/ or excludable goods influences the behavior of individuals and groups, define government policy interventions in imperfect markets, explain (using graphs where appropriate) how government policies can alter market outcomes in perfectly and imperfectly competitive markets, calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from government policies in perfectly competitive and imperfectly competitive markets, define measures of economic inequality in income and wealth, explain sources of income and wealth inequality, Read through the information for Units 1-6 in the. The first entry in each cell indicates the profits for Art's, and the second entry in each cell indicates the profits for Zeb's. What type of unemployment describes the situation of factory workers displaced by automation? E) $30 billion. Study with Quizlet and memorize flashcards containing terms like The table shows the short-run production of a firm that produces and sells its product in a perfectly competitive market. What operations strategies are important at Girlfriend Collective? The marginal utility per dollar spent on the last orange consumed is 75. Pollination, decomposition, and water purification. h. What will the FV and the PV be for$1,000 due in 5 years if the interest rate is 10%, semiannual compounding? What is the annuitys FV? The first section has 60 multiple-choice questions (MCQs). hire more workers if each worker can produce 3 units per hour. A firm with market power engages in price discrimination in order to, For the monopolistically competitive firm represented by the graph above, the allocatively efficient quantity of output is, A monopolistically competitive firm's demand curve will be least elastic if E) Calculations of GDP include the unsold inventories of goods produced within the borders of the country. Which statement is true about the circular flow diagram The first section has 60 multiple-choice questions (MCQs). Anthropogenic disruptions to Earth's resources can have sudden and severe negative consequences to the health of native species, specifically those whose populations are already threatened. Refer to the FRQs weve selected as they represent some of the FRQs that will appear on this years exam. christianchiffon. Expert Help. b. The graph shows the cost and revenue curves for a monopoly that produces teddy bears. If not (and the TVM is the only consideration), what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? E) positive economic profit in the long run. C) The economy is producing at its potential output level. assign alongside topic questions to address misunderstandings. Which of the following can be concluded as a result of this transaction? Same Prices $100; $700 $400; $500 The 2022 AP Microeconomics exam will be given in person using paper-and-pencil tests. D) mutual interdependence Explain your reasoning.Based solely on the information given, do you have reason to question the results of the following hypothetical studies? TB_Unit4ProgressCheckFRQ_608911f1c66486.608911f1cef141.88921253.pdf - AP Microeconomics Unit 4 Progress Check: FRQ 1. . What is the investments FV at rates of 0%, 5%, and 20% after 0, 1, 2, 3, 4, and 5 years? question does this decision answer in a free market economy. Therefore we need to divide the 2011 Nominal GDP by the GDP deflator (in hundredths) to deflate 2011 dollars down to 1984 dollars. The output gap is measured by the difference between actual and potential GDP. Sets found in the same folder. E) The average total cost decreases throughout the entire effective demand. At the trough of a business cycle, there is a recessionary gap because, at the trough, actual output is below potential output. Calculate Country X's nominal gross domestic product (GDP) for 2017 using the expenditures approach. A. dividend retention ratio Sets found in the same folder. AP Microeconomics Test. Army College of Education for Women, Peshawar. Download free-response questions from past exams along with scoring guidelines, sample responses from exam takers, and scoring distributions. An international team of researchers reported new evidence of reef fish adjusting to global warming conditions at the genetic level. "Reef fish inherit tolerance to warming oceans: Thanks to mom and dad, baby reef fish may have to what it takes to adjust to hotter oceans," Ryu Taewoo, ScienceDaily, April 30, 2018. The letters in the graph represent the enclosed areas. Based on the information and assuming Amy's and Sam's do not cooperate, which action will each pursue? Bring Albert to your school and empower all teachers with the world's best question bank for: Use the following list to make sure you are prepared for any topic that may show up on your particular exam! 17 terms. Art Lower Prices $300; $400 $600; $200 Year Question CED Topics Video Question/Rubric; 2019 Set1 #1: Unit 4: Monopoly, Deadweight Loss, Shut Down, Fixed Costs: Question/Rubric: 2019 Set1 #2: Unit 2: Marginal Analysis, Consumer Surplus, Cross-Price Elasticity : Question/Rubric: 2019 Set1 #3 . B) Sara has been unable to find a job and abandoned her job search. Same Prices $100; $700 $400; $500 Explain the relationship between marginal cost and marginal product and marginal cost and AVC and ATC. C) It does not account for the distribution of income in a nation or income inequality. C) Playgrounds are rival in consumption, and the optimal number of playgrounds is three. 62 terms. In 1984 nominal GDP was $10 billion. B) 2010 Jan works a 30-hour week for a minimum wage of $10 an hour. D) there are a small number of rival firms producing more differentiated products Use the following links to Alberts AP Microeconomics course to see if you truly understand each of the units: There are two types of FRQs on the AP Micro exam: short answers and long answers. 2 years? Which of the following best identifies the author's claim? Suppose the consumer price index (CPI) was 100 on January 1st, 2017 and 110 on January 1st, 2018 with no changes in nominal wages. ReviewEcon.com has you covered! What is the firm's profit-maximizing quantity of output? Course Hero is not sponsored or endorsed by any college or university. For more examples of previous FRQs, check out the College Board archive for AP Microeconomics. D) Both Amy's and Sam's will charge the same prices. Get Started . E) 2017. A) a large number of firms Excerpted from the AP Microeconomics Course and Exam Description, the Course at a Glance document outlines the topics and skills covered in the AP Microeconomics course, along with suggestions for sequencing. Explain. The die-off . PBS News Hour reported in 2014 that 39.4%39.4 \%39.4% of Americans between the ages of 25 and 64 have at least a two-year college degree (PBS website). 27 terms. Which statement is true about the approaches used to measure the value of a nation's gross domestic product (GDP) ? As competition for resources increases, the population size of the island's specialist species will decrease. E) a monopolistically competitive firm's demand curve is perfectly elastic, D) there are a small number of rival firms producing more differentiated products, Monopolistically competitive markets are characterized by E) Workers would be worse off, and the employers would be better off. E) Jan's real wage is $8 per hour at the end of the year. E) a monopolistically competitive firm's demand curve is perfectly elastic, D) there are a small number of rival firms producing more differentiated products, Monopolistically competitive markets are characterized by AP Macroeconomics Scoring Guide Unit 5 Progress Check: MCQ 1. Which of the following best explains why individuals and societies must make choices when presented with. AP Macroeconomics: Unit 3 Progress Check MCQ. D) 2015 A) Jan's real wage at the end of this year is $10 an hour because the base year equals 100. Correct. Correct. The loans annual interest rate is 8%, and it requires four equal end-of-year payments. Sign in to access your AP or Pre-AP resources and tools including AP Classroom. B) The dominant strategy for Art's is to charge the same prices. C) $2.50 Which of the following describes a difference between nominal gross domestic product (GDP) and real GDP? AP Microeconomics Exam Free-Response Questions and Scoring Information Archive. This check on presidential power illustrates that. . Recent flashcard sets. C) Workers and employers would be equally well off. Epigenetic change refers to chemical modifications in the DNA that signals genes to be switched on or off. Be sure to check your responses against the Scoring Guidelines for feedback. apples would Johnny have to consume before he considers purchasing another orange? One difference between monopolistic competition and oligopoly is that firms in monopolistic competition are assumed to, B) act independently in setting price and output. AP Macroeconomics Scoring Guide Unit 2 Progress Check: MCQ 1. D) $3.00 Quantity of Snacks Marginal Utility of Snacks Quantity of Movies Marginal, Two countries, Marland and Teckana, can produce either clothing or food using all their available resources at constant opportunity cost. Retrieved August 30, 2018 from:https://www.biographic.com/posts/sto/basking-on-the-brink What effective annual rate does each bank pay? Art Lower Prices $300; $400 $600; $200 Based on the information and assuming Amy's and Sam's do not cooperate, which action will each pursue? The government reported that prices, on average, have fallen by 5% during the current year. define resources and the cause(s) of their scarcity, define how resource allocation is influenced by the economic system adopted by society, define (using graphs as appropriate) the production possibilities curve (PPC) and related terms, explain (using graphs as appropriate) how the production possibilities curve (PPC) illustrates opportunity costs, trade-offs, inefficiency, efficiency, and economic growth or contraction under various conditions, calculate (using data from PPCs or tables as appropriate) opportunity cost, define absolute advantage and comparative advantage, determine (using data from PPCs or tables as appropriate) absolute and comparative advantage, explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade, calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade, define opportunity cost and explain or calculate the opportunity costs associated with choices, explain a decision by comparing total benefits and total costs (using a table or a graph when appropriate), calculate total benefits and total costs (using a table or graph where appropriate), define the key assumptions of consumer choice theory, explain (using a table or graph as appropriate) how a rational consumers decision making involves the use of marginal benefits and marginal costs, calculate (using a table or a graph when appropriate) how a rational consumers decision making involves the use of marginal benefits and marginal costs, define marginal analysis and related terms, explain a decision using marginal analysis (using a table or a graph when appropriate), define (using graphs as appropriate) key terms and factors related to consumer decision making and the law of demand, explain (using graphs as appropriate) the relationship between price and quantity demanded and how buyers respond to incentives and constraints, explain (using graphs as appropriate) buyers responses to changes in incentives and constraints, define (using graphs as appropriate) the law of supply, explain (using graphs as appropriate) the relationship between price and quantity supplied, explain (using graphs as appropriate) producers (sellers) responses to changes in incentives and technology, explain (using graphs where appropriate) measures of elasticity and the impact of a given price change on total revenue or total expenditure, calculate (using data from a graph or a table as appropriate) measures of elasticity, define (using graphs as appropriate) market equilibrium, consumer surplus, and producer surplus, explain (using graphs as appropriate) how equilibrium price, quantity, consumer surplus, and producer surplus for a good or service are determined, calculate (using data from a graph or table as appropriate) areas of consumer surplus and producer surplus at equilibrium, explain (using graphs where appropriate) how changes in underlying conditions and shocks to a competitive market can alter price, quantity, consumer surplus, and producer surplus, calculate (using data from a graph or table as appropriate) changes in price, quantity, consumer surplus, and producer surplus in response to changes in market conditions or market disequilibrium, define forms of government price and quantity intervention, explain (using graphs where appropriate) how government policies alter consumer and producer behaviors that influence incentives and therefore affect outcomes, calculate (using data from a graph or table where appropriate) changes in market outcomes resulting from government policies, explain (using graphs where appropriate) how markets are affected by public policy related to international trade, calculate (using data from a graph or table as appropriate) changes in market outcomes resulting from public policy related to international trade, Unit 3: Production, Cost, and the Perfect Competition Model, define (using graphs where appropriate) key terms and concepts relating to production and cost, explain (using graphs where appropriate) how production and cost are related in the short run and long run, calculate (using data from a graph or table as appropriate) the various measures of productivity and short-run and long-run costs, explain how firms respond to profit opportunities, define (using graphs or data as appropriate) the profit-maximizing rule, explain (using a graph or data as appropriate) the profit-maximizing level of production, explain (using graphs or data where appropriate) firms short-run decisions to produce positive output levels, or long-run decisions to enter or exit a market in response to profit-making opportunities, define (using graphs as appropriate) the characteristics of perfectly competitive markets and efficiency, explain (using graphs where appropriate) equilibrium and firm decision making in perfectly competitive markets and how prices in perfectly competitive markets lead to efficient outcomes, calculate (using data from a graph or table as appropriate) economic profit (loss) in perfectly competitive markets, define (using graphs where appropriate) the characteristics of imperfectly competitive markets and inefficiency, explain (using graphs where appropriate) equilibrium, firm decision making, consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets and why prices in imperfectly competitive markets cannot be relied on to coordinate the actions of all possible market participants and can lead to inefficient outputs, calculate (using data from a graph or table as appropriate) areas of consumer surplus, producer surplus, profit (loss), and deadweight loss in imperfectly competitive markets, define (using tables as appropriate) key terms, strategies, and concepts relating to oligopolies and simple games, explain (using tables as appropriate) strategies and equilibria in simple games and the connections to theoretical behaviors in various oligopoly market and non-market settings, calculate (using tables as appropriate) the incentive sufficient to alter a players dominant strategy, define (using graphs where appropriate) key terms and concepts relating to factor markets, explain (using graphs where appropriate) the relationship between factors of production, firms, and factor prices, calculate (using data from a graph or table where appropriate) the marginal revenue product and marginal resource cost, explain (using graphs where appropriate) firms and factors responses to changes in incentives and constraints, define (using graphs as appropriate) the characteristics of perfectly competitive factor markets, explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets, calculate (using data from a graph or table where appropriate) measures representing the profit-maximizing behavior of firms buying labor (with other inputs fixed) in perfectly competitive markets, define (using graphs as appropriate) the characteristics of monopsonistic markets, explain (using graphs where appropriate) the profit-maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets, calculate (using data from a graph or table where appropriate) measures representing the profit maximizing behavior of firms buying labor (with other inputs fixed) in monopsonistic markets, Unit 6: Market Failure and the Role of Government.