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

3. The production of pork on large corporate hog
   farms generates pollution that seeps into the
   ground and can pollute the local well-water
   supply.

(A) From society’s perspective, use marginal

analysis to explain how the competitive

market creates a misallocation of resources in

the market for pork.

(B) In a correctly labeled graph, illustrate the

market for pork and identify the following:

i. The market equilibrium price and quan-

tity of pork

ii. The socially optimal price and quantity of

pork

(C) Recommend an appropriate policy that

would correct for the misallocation of

resources in the pork industry.

AP Microeconomics Practice Exam 1 ‹ 181

› Free-Response Grading Rubric

Note:Based on my experience, these point allocations roughly approximate the weighting

on similar questions on the AP examinations. I have also tried to provide you with nota-

tion on where points would likely be deducted for responses that were not acceptable

enough for full credit. However, be aware that every year the point allocations change and

partial credit is awarded differently.

Question 1 (12 points)

Part (A): 4 points

These points are graphing points.

i. 1 point: Price and quantity correctly labeled in the correctly drawn soybean market.

ii. 2 points: The price is shown as horizontal and the quantity is found at P=MR =MC.

You cannot have a downward-sloping MR curve here.

iii. 1 point: The correctly labeled loss rectangle.

TIP 1: On graphing problems, you can lose a point for not indicating which variables lie

on each graphical axis. In this case, it would be as simple as a $ and a Q.

TIP 2: When asked to identify equilibrium price and quantity, do these in some way.

Dashed lines from the intersection to the axes are enough, or label the intersection E1.

S

D

AT C

P P = MR = d

$ $

Quantity BB

Quantity Mkt

AVC

loss MC

Q 1 q 1

TIP