5 Steps to a 5 AP Microeconomics, 2014-2015 Edition

Bob’s Beans is a perfectly competitive soybean producer. The short-run price of soybeans is cur- rently below average total cos ...

The production of pork on large corporate hog farms generates pollution that seeps into the ground and can pollute the local we ...

TIP 3: Draw your graphs large enough for you to clearly identify the area of profit/loss. If your graph is the size of a postage ...

Note:I’ve also shaded the areas of consumer surplus and deadweight loss, which were not required in this practice problem. Becau ...

TIP: Quickly write down the marginal products and highlight the options that satisfy the least-cost condition. With the price of ...

Part (C): 1 point An appropriate policy for this kind of negative externality would be to levy a tax on pork production to shift ...

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AP Microeconomics Practice Exam 2 ‹ 187 AP Microeconomics Practice Exam 2 Section I: Multiple-Choice Questions ANSWER SHEET 1 A ...

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Land, labor, capital and entrepreneurial talent are often referred to as (A) production possibilities. (B) goods and services. ...

A rational consumer who is eating Girl Scout cookies stops eating when (A) the total benefit equals the total cost of eating c ...

Which of the following is an implicit cost for the owner of a small store in your hometown? (A) The wage that is paid to the as ...

If the market is in equilibrium, which of the fol- lowing areas corresponds to producer surplus? (A) BGD (B) 0AHJ (C) 0DGK (D) ...

A firm employs variable amounts of labor to a fixed amount of capital to produce output. If the daily wage paid to labor increa ...

The market for good X is currently in equilib- rium. Which of the following choices would not cause both a decrease in the equi ...

If a market for a good is producing a negative externality, (A) at the market output the marginal costs to society exceed the ...

Which of the following statements are true of consumer utility-maximizing behavior? I. Utility from consumption of good X is m ...

Which of the following would improve the effi- ciency of a monopoly market? (A) The government regulates the monopolist to pro ...

The local market for bankers is currently in equilibrium. Which of the following increases the local wage paid to bankers? (A) ...

E—Know the four scarce economic resources. D—A concave PPF exhibits the law of increas- ing costs. As more of a good is produce ...