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AP Economics Exam Sample Questions

Free ap economics test questions to pass free ap economics practice test questions. For ap economics exam practice questions you must go through real exam. For that we provide Free Advanced Placement (AP) Economics real test. We discuss in these test questions for ap economics from different topics like ap economics practice exam questions, ap economics exam questions online free .

ap economics questions practice

In this test you have to answer ap economics exam practice questions. To get pass test ap economics you must answers correct. So Enjoy these practice exam questions ap economics to get enough knowledge for ap economics 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 Practice Questions

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Q:1-Which of the following is the most likely economic explanation for why a local restaurant that is busy and has many loyal customers could go out of business?
Mark one answer:
The restaurant is spending too little on advertising.
The restaurant is paying too little for rent and food.
The restaurant has more customers than it needs.
The restaurant's costs are higher than its revenues.

Q:2-Auto dealers begin to offer new cars for sale with no down payment required and an interest rate of 0 percent. Which of the following is most likely to occur?
Mark one answer:
Sales of new cars will decrease.
More consumers will buy new cars.
More people will use public transportation.
Prices of used cars will increase.

Q:3-A profit-maximizing company that manufactures sports clothing wants to spend $25 million to have a professional athlete appear in commercials for its clothing. Which of the following is the best economic reason for the company to spend the money?
Mark one answer:
The company sells $25 million worth of clothing per year.
The company could cover the cost of the athlete's contract with profits from previous years.
The additional revenue generated by the commercials would be greater than the additional costs of producing the clothing.
The additional revenue generated by the commercials would be greater than $25 million plus the costs of producing the additional clothing.

Q:4-Because Country A has no domestic sources of wood, it imports all its wood from wood-producing countries. If the price of wood in wood-producing countries rises substantially, which of the following is most likely to occur?
Mark one answer:
Country A will import more wood to meet rising demand.
Country A will impose a tariff on wood imports.
Housing prices in Country A will increase as wood imports become more expensive.
Profits in other wood-producing countries will increase because of increased exports to Country A.

Q:5-Other than wages, what are two issues commonly addressed by collective bargaining between labor unions and employers?
Mark one answer:
Amount of stock to issue and selection of union leaders
Corporate image and company location
Fringe benefits and work rules
Selection of corporate leaders and advertising

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Q:6-Which of the following is true of people with poor credit histories?
Mark one answer:
They will earn higher rates of interest on savings accounts than people with good credit histories.
They will earn lower rates of interest on savings accounts than people with good credit histories.
They will be charged higher rates of interest on loans than people with good credit histories.
They will be charged lower rates of interest on loans than people with good credit histories.

Q:7-Recently, the hourly wage that parents are willing to pay babysitters increased dramatically. Higher pay will most likely cause which of the following changes in how babysitters divide their out-of-school time between babysitting and other activities?Time Spent Time SpentBabysitting on Other Activities
Mark one answer:
No change Decrease
Increase Decrease
Decrease No change
Increase Increase

Q:8-James borrows $10,000 from the bank. By the time the loan is repaid, James has paid the bank $10,400. What does the additional $400 represent?
Mark one answer:
Inflation rate
Purchasing power of money
Interest
Investment

Q:9-When people's incomes increase, the demand for roses and the price of roses are most likely to change in which of the following ways?Demand for Roses Price
Mark one answer:
Decrease Decrease
Decrease Increase
Increase Decrease
Increase Increase

Q:10-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


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