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 nations of Arcadia and Bylvania produce only two goods: grain and steel. The table below shows the maximum daily production of each good for both countries using all available resources. Assume that costs of production are constant.

  • Arcadia and Bylvania are trading partners.

  • Both countries have linear production possibilities curves.

Table 1: Maximum Daily Production

Country

Grain (tons)

Steel (tons)

Arcadia

100

50

Bylvania

80

20

A.

Draw a correctly labeled graph of the production possibilities curve for Arcadia, with grain on the horizontal axis and steel on the vertical axis. Plot the numerical values of the intercepts. Indicate a point labeled X that represents full employment and efficient production, and a point labeled Y that represents unemployed resources.

B.

Use the data in Table 1 to answer the following questions.

i.

Calculate the opportunity cost of producing one ton of steel in Arcadia. Show your work.

ii.

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

C.

Identify a specific numerical value for the terms of trade for one ton of steel (in terms of grain) that would be beneficial for both Arcadia and Bylvania.

D.

Draw a correctly labeled graph of the market for grain in Arcadia (see Figure 2). Label the equilibrium price as PeP_ePe​ and the equilibrium quantity as QeQ_eQe​. Assume that trade is not yet taking place and we are looking at the domestic market for grain in Arcadia.

E.

On your graph in part D, show the effect of this study on the equilibrium price and quantity of grain in the short run, labeling the new equilibrium price as P2P_2P2​ and the new equilibrium quantity as Q2Q_2Q2​. Assume that a new scientific study is published in Arcadia promoting the health benefits of consuming grain.

F.

Assume the government of Arcadia imposes a binding price ceiling on the market for grain.

i.

On your graph in part D, draw a line representing the binding price ceiling, labeled PcP_cPc​.

ii.

Does this price ceiling result in a surplus, a shortage, or neither? 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.