AP Microeconomics Practice Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025) Which of the following events correctly describes the outcome in a competitive market? - Correct Answers ✅An increase in supply, ceteris paribus, causes a decrease in equilibrium price and increase in equilibrium quantity.Is there a Nash equilibrium with this payoff matrix? If so, what is it? - Correct Answers ✅Martha will offer a discount; Megan will offer a discount.Which of the following could explain the change illustrated in the graph?(Arrows pointing towards the right) - Correct Answers ✅The number of cell phone consumers increases.Which of the following statements about income and wealth distribution is true? - Correct Answers ✅Discrimination in labor markets distributes income less equally.Benjamin is an avid moviegoer and has $50 that he plans to spend entirely on attending movies. The cost of a movie at the local theater is $10. The table below shows the total utility he enjoys based on the quantity of movies he sees.Movies to Total Utility 1:4, 2:9, 3:13, 4:15, 5:16 - Correct Answers ✅2 1 / 2
AP Microeconomics Practice Exam Questions and Verified Answers, 100% Guarantee Pass (Latest 2025) Assume a coal power plant is causing an increased amount of pollution because there is a change in the amount of carbon in the coal. If the pollution causes a negative social externality that has no effect on private costs and benefits, in which of the following ways does the socially efficient equilibrium compare to the free market equilibrium? - Correct Answers ✅Optimal social quantity will be less than the private unregulated quantity, and the optimal social price will be greater than the private price.Which of the following describes the effect that would occur on pencils if the government implemented a per unit subsidy on pencils? - Correct Answers ✅The output supplied in a market would increase.Which of the following questions help determine resource allocation in an economy? - Correct Answers ✅How should goods and services be produced?A firm will continue to hire workers so long as ________ is greater than or equal to ________. - Correct Answers ✅marginal revenue product; marginal factor cost Which of the following explains why economic trade-offs are still necessary even in very rich societies? - Correct Answers ✅All societies have unlimited wants and desires with limited resources to produce goods.
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