AP Microeconomics Practice Test 3

Test Information

Question 12 questions

Time 14 minutes

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1. Every time Mr. Hamm makes another pizza in his shop, he places $0.45 worth of sauce on top. For Mr. Hamm, the cost of pizza sauce is a component of which of the following?

I. Total Fixed Costs

II. Total Variable Costs

III. Marginal Cost

IV. Total Costs

2. If the government wants to establish a socially optimal price for a natural monopoly, it should select the price at which

3. Which of the following will increase wages for tuba makers?

4. After Julia received a raise in her income, she began purchasing more ice cream cones and fewer popsicles. For Julia, popsicles

5. When the opportunity for price discrimination arises,

6. When a perfectly competitive labor market is in equilibrium,

7. Basketball     TC

1     103

2     105

3     109

4     114

On the basis of the information in the table, and the assumption that total fixed costs are 100, which of the following is a correct statement about the costs of basketball production?

8. A production possibility frontier will be a straight line when

9. An industry with three firms selling a standardized or differentiated product would be called

10. Which of the following are associated with public goods?

I. Free riders

II. Adding demand curves vertically to find the demand curve for society

III. Nonrivalry in consumption

IV. Nonexcludability

11. Workers     Total Product

1     5

2     9

3     12

4     14

5     15

Loony Spoons corporation sells silverware in a competitive market at a constant price of $2 per piece. A competitive labor market sets the wage at $5 per hour. The table indicates the total product per hour using various numbers of workers. How many workers should Loony Spoons hire per hour?

12. Which of the following statements about a price ceiling is accurate?