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💶AP Macroeconomics
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💶AP Macroeconomics

FRQ 1 – Long
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Unit 1: Basic Economic Concepts
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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. Zephyria and Borealis are two nations that produce Wind Turbines and Geothermal Pumps using equal amounts of resources.

  • The table below shows the maximum daily output for each country if they devote all their resources to producing one good.

Table 1: Maximum Daily Output

Country

Wind Turbines

Geothermal Pumps

Zephyria

10

20

Borealis

5

15

A.

Draw a correctly labeled graph of the production possibilities curve (PPC) for Zephyria, with Wind Turbines on the vertical axis and Geothermal Pumps on the horizontal axis. Assume increasing opportunity costs. Plot a point labeled A that represents full employment and efficient production. Plot a point labeled B that represents inefficient production.

B.

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

i.

Calculate the opportunity cost of producing one Wind Turbine in Zephyria. Show your work.

ii.

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

C.

Identify one specific numerical value for the terms of trade in terms of Geothermal Pumps that would be beneficial for both Zephyria and Borealis to exchange one Wind Turbine.

D.

Draw a correctly labeled graph of the market for Geothermal Pumps in Zephyria (see Figure 2). Label the equilibrium price PeP_ePe​ and the equilibrium quantity QeQ_eQe​.

E.

Assume that incomes in Zephyria increase and that Geothermal Pumps are a normal good.

i.

Will the demand for Geothermal Pumps increase, decrease, or remain the same? Explain.

ii.

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

F.

Assume that Zephyria develops a new manufacturing process that increases the productivity of Geothermal Pump production but has no effect on Wind Turbine production. On your graph in part A, show the effect of this technological change on the production possibilities curve.

Required Graph Drawings

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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.