Fiveable
💶AP Macroeconomics
​

💶AP Macroeconomics

FRQ 1 – Long
​
Unit 1: Basic Economic Concepts
​
FRQ Types & Units

Each FRQ type tests specific skills taught in particular units. Here's why certain units appear for each question type:

This mapping reflects College Board's exam structure - each FRQ type tests specific skills that are taught in particular units.

Practice FRQ 1 of 201/20

1. Assume that the country of Agraria produces only two goods: wheat and cloth. The economy of Agraria is currently operating at full employment with constant opportunity costs.

  • Agraria and Botania are trading partners.

  • The currency of Agraria is the Agrio.

  • Wheat is a normal good in Agraria.

Table 1: Maximum Production Capabilities

Country

Wheat (bushels per day)

Cloth (bolts per day)

Agraria

100

50

Botania

80

80

A.

Using the data in Table 1, draw a correctly labeled graph of the production possibilities curve (PPC) for Agraria, with wheat on the vertical axis and cloth on the horizontal axis. Plot the numerical values of the intercepts. Label a point A that represents full employment and efficient production, and label a point U that represents unemployment or inefficient production.

B.

Use the data in Table 1 to answer the following.

i.

Calculate the opportunity cost of producing one bolt of cloth in Agraria. Show your work.

ii.

Which country has the comparative advantage in the production of wheat? Explain.

C.

Identify a specific numerical value for the terms of trade for one bolt of cloth that would be beneficial for both Agraria and Botania.

D.

Assume that trade has not yet begun. Draw a correctly labeled graph of the market for wheat in Agraria (see Figure 2). Label the initial equilibrium price PeP_ePe​ and the initial equilibrium quantity QeQ_eQe​.

E.

Assume that average income levels in Agraria increase significantly.

i.

Will the demand for wheat in Agraria increase, decrease, or remain the same? Explain.

ii.

On your graph in part D, show the effect of the increase in income on the market for wheat. Label the new equilibrium price P2P_2P2​ and the new equilibrium quantity Q2Q_2Q2​.

F.

Assume the government of Agraria sets a binding price ceiling in the market for wheat. Will this policy result in a surplus, a shortage, or equilibrium in the market for wheat? Explain.

Required Graph Drawings

Pep

essential ap study content awaits..

Features
Testimonials
Testimonials
start studying →
FRQ Directions
Free Response Question Practice

This practice environment simulates the AP AP Macroeconomics Free Response Questions section. Here are some guidelines:

  • Read each question carefullybefore responding. Pay attention to command verbs like "identify," "explain," "analyze," or "evaluate."
  • Use the timer to practice time management. You can pause, restart, or hide the timer as needed.
  • Mark for Review if you want to come back to a question later.
  • Your responses are saved automatically as you type. You can also use the drawing tool for questions that require diagrams or graphs.
  • Use the toolbar for formatting options like bold, italic, subscript, and superscript.
  • Navigate between questions using the Previous and Next buttons at the bottom of the screen.

Tip: Answer all parts of each question. Partial credit is often available, so even if you are unsure, provide what you know.