AP Microeconomics Practice Exam
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Which of the following best defines opportunity cost? - Correct Answers ✅It is the amount of one product that must be given up to produce an additional unit of another product Which of the following explains why a production possibilities curve is often represented as concave (bowed out) from the origin? - Correct Answers ✅Increasing opportunity costs Assume that consumers consider popcorn and pretzels to be substitutes. A significant decrease in the supply of popcorn will affect the pretzel market by... - Correct Answers ✅Increasing the demand for pretzels and therefore the price of pretzels In the market depicted in the diagram above, if the government imposes a price ceiling of $1.00 per gallon on gasoline, which of the following will result? - Correct Answers ✅A shortage of 6 billion gallons Assume that Clark spends his entire income on the purchase of two goods, X and Y. If his income and the prices of good X and Y all double, Clark will... - Correct Answers ✅buy the same amount of goods X and Y 1 / 3
AP Microeconomics Practice Exam
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Suppose that a firm begins to hire workers for a newly completed plant with a fixed amount of machinery. As the firm hires additional workers, one would expect the marginal product to - Correct Answers ✅rise initially, but eventually fall In the short run, which of the following costs must continuously decrease as output produced increases? - Correct Answers ✅Average total cost If the firm produces 10 units of output, its economic profits will equal - Correct Answers ✅$50 Which of the following is most likely to occur if the firm increases production beyond 10 units? - Correct Answers ✅The firm would have to lower its price to sell more than 10 units Which of the following statements about a constant- cost perfectly competitive industry in long-run equilibrium must be true? - Correct Answers ✅A increase in demand will cause no change in the long-run equilibrium price In which of the following market structures do firms recognize their mutual interdependence? - Correct Answers ✅Oligopoly 2 / 3
AP Microeconomics Practice Exam
QUESTIONS AND ANSWERS 100%
SOLVED (Newest 2025) Assume that a profit-maximizing firm is perfectly competitive in both the output and the factor markets and is at its long- run equilibrium. The firm's output is 100 units, its total revenue is $600.00, and the fixed cost of production is $50.00. Based on this information, which of the following is true for the firm? - Correct Answers ✅Its marginal cost is $6.00, and its average variable cost is $5.50.Businesses employ workers from city neighborhoods and rural areas. These workers are perfect substitutes and cannot relocate in the short run. The government offers businesses a wage subsidy if they hire workers from city neighborhoods.What is the effect of the subsidy on the wage rate of rural workers on the total hours the work? - Correct Answers ✅Wage of rural worker= decrease Total hours worked by rural workers= decrease A per-unit tax on pollution produced by a firm will affect the firm's output and pollution levels in which of the following ways? - Correct Answers ✅Output= decrease Pollution= decrease Which of the following will most likely lead to a more equal distribution of income? - Correct Answers ✅More progressive income taxes
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