Economics Micro & Macro (CliffsAP)

Microeconomics Full-Length Practice Test 2

Microeconomics Full-Length

Practice Test 2

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54. Question 54 refers to the following graph.

In the graph above, the marginal revenue for this perfectly competitive, profit maximizing firm is represented by

the line:

A. AB

B. BE

C. AC

D. AF

E. AE

EF Quantity

A

B

D

ATC

AVC

MC

C

Price

55. Suppose the government gives its citizens a $100
    voucher each month which the citizens can use to
    purchase food. Which of the following statements
    is false?
    A. A black market will form where goods other
    than food can be purchased with vouchers.
    B. Some citizens will purchase more food than
    before.
    C. Citizens will have more money to spend on
    all other goods.
    D. Food producers will not benefit from the
    food vouchers.
    E. Government spending will increase.