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AP Microeconomics Exam Questions

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Practice AP Microeconomics Exam

sample ap microeconomics questions ap microeconomics exam practice questions


Q:1-Assume the firm operates in the short-run. Use the following chart for questions 1-5:
05-01 ap microeconomics exam questions
Given the trend of total revenue schedule, which of the following statements best describes the behavior of the total revenue curve for this firm:

Mark one answer:

The total revenue curve will increase indefinitely and constantly
The total revenue curve will initially increase, become flat, then increase
The total revenue curve will always increase but at a decreasing rate
The total revenue curve will increase initially, become flat, then decrease



Q:2-The economy experiences slow growth and average incomes in the US decreases by 10%. As a result, the demand for widgets increases by 5%. Widgets are a:
Mark one answer:

Inferior good
Necessary good
Normal good
Luxury good


Q:3-If the increase in the price of a good increases the demand for another good, then the two goods are:
Mark one answer:

substitute goods
normal goods
giffen goods
luxury goods


Q:4-Which of the following is an example of a private good?
Mark one answer:

Fireworks
Public radio
A bicycle
A free blog


Q:5-A consumer's indifference curves for two different goods will be a straight lines when:
Mark one answer:

Both goods are perfect substitutes
Both goods are perfect compliments
Utility is maximized
The prices of the two goods are equal


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Q:6-Patents, limiting the number of licenses available, and economies of scale are all examples of:
Mark one answer:

sources of demand
factors of production
barriers to entry
sources of supply


Q:7-In the long run, a monopolistically competitive firm will:
Mark one answer:

earn positive economic profit
earn negative economic profit
become an oligopoly
earn zero economic profit


Q:8-The United States trades corn in exchange for maple syrup from Canada. If these nations are taking advantage of relative opportunity costs, what must be true?
Mark one answer:

The U.S. has an absolute advantage in corn production, while Canada has an absolute advantage in maple syrup production.
The U.S. has a comparative advantage in corn production, while Canada has a comparative advantage in maple syrup production.
The U.S. has a comparative advantage in maple syrup production, while Canada has a comparative advantage in corn production.
The U.S. has an absolute advantage in both the production of maple syrup and corn.


Q:9-One characteristic of a public good is non-rivalry. Which of the following goods are NOT non-rivalrous?
Mark one answer:

A poetry reading
The freeway network during the morning commute
A movie theater at 11am on a Wednesday
Law enforcement


Q:10-Consumer income increases at the same time apple growers have pulled in an unexpectedly large harvest? Assuming apples are a normal good and perfect competition, what is the effect on price and quantity in the apple market?
Mark one answer:

Price indeterminate, Quantity increases
Price decreases, Quantity increasesb
Price increases, Quantity increases
Price indeterminate, Quantity decreases


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