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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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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 economy of Zephyria produces only two goods: solar panels and wind turbines. The resources in Zephyria are adaptable but not perfectly substitutable, resulting in increasing opportunity costs.

  • Zephyria and Notus are trading partners.

  • The table below shows the maximum daily output of each good for both countries if they use all their resources efficiently and produce only that good.

Table 1. Maximum Daily Production

Country

Solar Panels (units per day)

Wind Turbines (units per day)

Zephyria

40

20

Notus

60

15

A.

Draw a correctly labeled graph of the production possibilities curve (PPC) for Zephyria (Figure 1), with solar panels on the vertical axis and wind turbines on the horizontal axis. Plot a point labeled A that represents full employment and efficient production. Plot a point labeled B that represents inefficient production.

B.

Assume that Zephyria develops a new robotic assembly technology that improves the production of solar panels but has no effect on the production of wind turbines.

i.

Calculate the opportunity cost of producing one wind turbine in Zephyria before the new technology, using the data in Table 1. Show your work.

ii.

On your graph in part A (Figure 1), show the effect of the new technology on Zephyria's production possibilities.

C.

Zephyria considers trading with Notus based on the data in Table 1. Assume constant opportunity costs for this calculation.

i.

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

ii.

Identify a specific numerical value for the terms of trade (in terms of solar panels) for one wind turbine that would be beneficial for both Zephyria and Notus.

D.

Draw a correctly labeled graph of the market for solar panels in Zephyria (Figure 2). Label the initial equilibrium price PEP_EPE​ and the initial equilibrium quantity QEQ_EQE​.

E.

Assume that solar panels are a normal good and consumer income in Zephyria increases.

i.

On your graph in part D (Figure 2), show the effect of the increase in consumer income on the market for solar panels. Label the new equilibrium price P2P_2P2​ and the new equilibrium quantity Q2Q_2Q2​.

ii.

Based on the change shown in your graph, what happens to the producer surplus in the market for solar panels? Explain.

F.

Assume the government of Zephyria imposes a binding price ceiling on the market for solar panels. Will the quantity of solar panels exchanged in the market increase, decrease, or remain the same compared to the equilibrium quantity QEQ_EQE​? Explain.

Required Graph Drawings

Timed

00:00

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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.