AP Microeconomics Practice Test 18

Test Information

Question 12 questions

Time 14 minutes

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1. More college students are graduating with BA degrees in economics. Given this trend, we would expect the wage of economists, the employment of economists, and the demand for economics textbooks to change in which of the following ways?

ECONOMIST WAGES     EMPLOYMENT OF ECONOMISTS     DEMAND FOR ECONOMICS TEXTBOOKS

2. Which of the following is the best example of a negative externality and the appropriate plan for eliminating it?

3. A perfectly competitive employer hires labor up to the point where

4. The sales tax that you pay at the grocery store is commonly labeled a

5. Which of the following is the best example of the free-rider effect?

6.

If the market for this good was in equilibrium at Q2 but the socially optimal output was Q1, the government could best remedy this —— of resources by legislating a —— on —— of the good.

7. Land, labor, capital and entrepreneurial talent are often referred to as

8. The law of increasing costs is useful in describing

9. Which of the following is likely to have a demand curve that is the least elastic?

10.

The figure above shows the production possibility frontiers (PPFs) for two nations that produce crabs and cakes. If these nations specialize and trade based on the principle of comparative advantage, which of the following trade agreements benefit both nations?

11. Which of the following scenarios would increase a nation's production possibility frontier (PPF)?

12. A rational consumer who is eating Girl Scout cookies stops eating when