AP Microeconomics Practice Test 4

Test Information

Question 12 questions

Time 14 minutes

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1. If a decrease in income of 10 percent would cause Alec's consumption of vitamins to increase by 15 percent, which of the following statements is the most likely to be correct?

2.

The table indicates the number of trees that can be planted per hour using different combinations of inputs. All of the relevant numbers in the table are consistent with

3.

In the payoff matrix in the figure, a dominant strategy equilibrium

4. In the long run, a monopolistically competitive firm

5. Which of the following is most likely to result in a shift to the right in the demand curve for orange juice?

6. The market demand curve for labor would shift to the left as the result of

7. The industry that makes plastic army figures uses a small fraction of the plastic demanded for all purposes. On this basis, we can conclude that the army-figures industry is most likely a(n)

8.

Given the cost and revenue curves in the figure, how many units of output should be produced in order to maximize profit?

9. The concentration ratio for a monopoly is

10. At a Nash equilibrium,

11. The condition that P = MC is the direct requirement for which type of efficiency?

12. In order for a firm to successfully carry out price discrimination, which of the following conditions must hold?

I. The firm cannot face a downward sloping demand curve.

II. The firm must have market power.

III. Buyers with differing demand elasticities must be separable.

IV. The firm must have motives beyond profit maximization.

V. The firm must be able to prevent the re-sale of its products.