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

32. The market for good X is currently in equilib-
    rium. Which of the following choices would not
    cause both a decrease in the equilibrium price of
    good X and a decrease in the equilibrium quan-
    tity of good X?

(A) A decrease in consumer income and good X

is a normal good.

(B) An increase in consumer income and good

X is an inferior good.

(C) An increase in the price of good Y, a com-

plement for good X.

(D) A decrease in the price of good Y, a substi-

tute for good X.

(E) An increase in the number of consumers in

the market for good X.

Questions 33 to 34 refer to the figure below, which
shows cost curves for a competitive firm.

33. If average variable cost at a quantity of 10 is
    $25, what is the value of $Yin the figure above?

(A) $250

(B) $25

(C) $35

(D) $1,000

(E) $350

34. At a quantity of 10, what is the value of $(Y -X)?

(A) $100

(B) $25

(C) $10

(D) $35

(E) $350

35. The demand for labor falls if

(A) labor productivity falls.

(B) the price of the good produced by labor

rises.

(C) the price of a complementary input falls.

(D) demand for the good produced by labor

rises.

(E) a minimum wage is removed from the labor

market.

Questions 36 to 37 refer to the graph below.

36. The curve labeled 4 represents which of the
    following?

(A) Marginal cost

(B) Marginal product of labor

(C) Average total cost

(D) Average fixed cost

(E) Average variable cost

37. Where is the shutdown point for this perfectly
    competitive firm?

(A) Any price below curve 4

(B) Any price below 0c

(C) Any price below curve 3

(D) Any price below curve 2

(E) Any quantity less than Q

1

2

3

4

Q

a

f

c d

b

g

e

h

Output

$

0

Output

Total Fixed

Cost

Dollars

Total Cost

Total Variable

Cost

0 10

100

X

Y

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