AP Microeconomics Practice Test: Public Goods, Externalities, and the Role of Government

Test Information

Question 6 questions

Time 7 minutes

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1.

In the figure above, X represents

2. Which of the following scenarios best describes a negative externality?

3. Which of the following is the best example of a public good?

4. Production of energy (i.e., electricity, natural gas, heating oil) creates a negative externality in the form of air pollution blown to communities downwind from the source of the pollution. Of the choices below, which is the most appropriate policy to remedy this negative externality?

5. Jason earns $1,000 a week and pays a total of $200 in taxes. Jennifer earns $2,000 a week and pays a total of $300 in taxes. We can conclude from this information that their income is taxed with a(n)

6. You learn that one nation has a Gini ratio of .25 and another nation has a Gini ratio of .85. Based on this you might conclude