AP® Microeconomics

Practice
Free Response
Assessments
Overview

    Basic Economic Concepts

    Basic Economic Concepts in AP Microeconomics cover topics like scarcity, opportunity cost, trade-offs, and how individuals and firms make rational decisions to maximize utility and efficiency within constraints.

    Short Answer

    Short answer questions on the understanding of economic concepts and models through precise explanations, calculations, and interpretations using graphs and data to provide thorough analysis.
    2 questions

    Comparative and Absolute Advantage: Tulips and Cheese

    Utility-Maximization for Crispitos and Pizza

    Supply and Demand

    Supply and demand describe how prices and quantities traded in a market are determined by the interaction between sellers' willingness to sell and buyers' willingness to purchase goods and services.

    Long Answer

    Supply and demand analysis involves understanding how equilibrium price and quantity are determined and influenced by shifts in the supply and demand curves, which highlight constraints and trade-offs.
    1 question

    Supply and Demand: Elasticity and Utility-Maximization

    Short Answer

    Utilize supply and demand concepts to predict and analyze market behaviors, considering how changes in determinants cause shifts in curves, affecting equilibrium price and quantity.
    3 questions

    Supply and Demand: Cookies and Milk

    Supply and Demand: Single Serve Coffee Capsules

    Utility-Maximization and Elasticity: Coffee and Tea

    Production, Cost, and the Perfect Competition Model

    Explore how production and cost relationships influence firm decisions in perfectly competitive markets to achieve efficiency and maximize profit.

    Long Answer

    The topic covers the analysis of production and cost-related concepts within perfect competition, emphasizing profit maximization and efficiency in both short-run and long-run scenarios.
    1 question

    Perfect Competition: Cattle Market

    Imperfect Competition

    Imperfect competition includes market structures like monopoly, oligopoly, and monopolistic competition, characterized by high entry barriers and firms possessing market power, potentially leading to inefficiency.

    Long Answer

    Imperfect competition involves market structures like monopolies and oligopolies where firms have market power, influencing prices, output, and efficiency compared to perfectly competitive markets.
    4 questions

    Game Theory: Airlines

    Monopoly: Holiday Movies

    Monopoly: Short Run Equilibrium for Self-Driving Cars

    Monopoly: Small Town Hospital

    Short Answer

    Explain how firms and markets behave in imperfect competition contexts, including monopolies and oligopolies, affecting pricing, output, and efficiency.
    1 question

    Game Theory: Restaurants

    Factor Markets

    Factor markets analyze how labor, land, and capital are allocated and priced, focusing on supply and demand interactions and the profit-maximizing decisions of firms and individuals.

    Short Answer

    Short answer questions on factor markets require defining terms, explaining production, firms, and factor price relationships, and calculating marginal revenue product and marginal resource cost.
    3 questions

    Factor Market: Perfectly Competitive Labor Market for Backpacks

    Monopsony: Automobile Factory

    Perfectly Competitive Factor Market for Tires

    Market Failure and the Role of Government

    Market failure occurs when unregulated markets allocate resources inefficiently, and government intervention can help correct these inefficiencies through tools like taxes, subsidies, and regulations.

    Long Answer

    Examining market failures such as externalities and public goods, alongside government interventions like taxes, regulations, and subsidies, to promote efficiency and address these inefficiencies.
    1 question

    Market Failures and Government Intervention

    Short Answer

    Analyze and explain market failures like externalities and provide solutions through government interventions, using data and models to evaluate their effectiveness.
    2 questions

    Externalities: Mosquito Treatments

    Externalities: Paper Mills