AP Microeconomics Practice Test: Elasticity, Microeconomic Policy, and Consumer Theory

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Question 6 questions

Time 7 minutes

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1. If the price of corn rises 5 percent and the quantity demanded for corn falls 1 percent, then

2. A small business estimates price elasticity of demand for the product to be 3. To raise total revenue, owners should

3. Mrs. Johnson spends her entire daily budget on potato chips, at a price of $1 each, and onion dip at a price of $2 each. At her current consumption bundle, the marginal utility of chips is 12 and the marginal utility of dip is 30. Mrs. Johnson should

4. A consequence of a price floor is

5.

The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the deadweight loss is

6.

The competitive market equilibrium is at point C. If a per unit excise tax is imposed on the production of this good, the revenue collected by the government is