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AP Economics Test Questions

Free ap economics sample questions to pass ap economics questions. For ap economics prep you must go through real exam. For that we provide ap economics practice questions real test. We discuss in these ap economics test prep from different topics like ap economics certification, ap economics preparation multiple choice questions and answers .

free ap economics practice test

In this test you have to answer ap economics questions and answers. To get pass ap economics sample test you must answers correct. So Enjoy these ap economics mock test to get enough knowledge for ap economics free practice test attempt. You will get mock test answers after click submit button at bottom. If any question wrong just click on go back button to correct it. Easy Na!

AP Economics Exam Preparation

ap economics questions ap economics test prep

Q:1-In the United States, which of the following forms of taxation currently represents the largest source of tax revenue for the federal government?
Mark one answer:
Property tax
Sales tax
Corporate income tax
Personal income tax

Q:2-Which of the following is a policy tool of the Federal Reserve?
Mark one answer:
Raising or lowering income taxes
Increasing or decreasing unemployment benefits
Buying or selling government securities
Increasing or decreasing government spending

Q:3-Which of the following defines the equilibrium price for a product in a competitive market?
Mark one answer:
The price that most consumers are willing to pay for the product
The price at which business makes the maximum revenue
The price that is equal to the total cost of producing and marketing the product
The price at which the quantity supplied is the same as the quantity demanded

Q:4-Which of the following best describes the primary role of an economic system?
Mark one answer:
To respond to market failure
To address equity concerns to improve fairness
To determine the allocation of limited resources
To protect domestic producers from foreign competition

Q:5-Which of the following actions does the United States federal government commonly take to finance a budget deficit?
Mark one answer:
Printing more money
Imposing import quotas
Borrowing from the public
Expanding public-works projects

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Q:6-Country X and Country Y have similar populations and natural resources. Which of the following best explains why Country X would have a higher rate of economic growth than Country Y?
Mark one answer:
Country X invests more in education.
Country X imports more consumer goods.
Country X places higher taxes on businesses.
Country X pays larger salaries to government officials.

Q:7-How do federal income taxes and transfer payments, such as unemployment compensation, affect the distribution of personal income in the United States after taxes and transfers?
Mark one answer:
Federal income taxes make the distribution of income more equal, but transfers make it less equal.
Federal income taxes make the distribution of income less equal, but transfers make it more equal.
Both federal income taxes and transfers make the distribution of income less equal.
Both federal income taxes and transfers make the distribution of income more equal.

Q:8-Which of the following actions is an example of an improvement in human capital?
Mark one answer:
Carlos hires three workers for his business.
Frank's Furniture trains employees to use computers.
Tasha applies for a job as an engineer.
The city of Upland builds a new nursing home.

Q:9-Which of the following best explains why domestic industries are often successful in convincing Congress to place tariffs on certain imported products?
Mark one answer:
The revenue generated from the tariffs is less than the revenue from taxes on products produced by the industry.
The revenue generated from the tariffs is greater than the benefits of the tariffs to the industry.
The cost to any one consumer is small, and the benefits to the industry are large.
The benefit to any one consumer is large, and the cost to the industry is small.

Q:10-An increase in the rate of inflation will result in a decrease in which of the following?
Mark one answer:
Federal and state income taxes
The purchasing power of money
The level of prices
Interest rates


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