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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. Assume that the economy of Artland produces two goods: radios and televisions. The resources in Artland are not equally suitable for the production of both goods, resulting in increasing opportunity costs.

  • Artland is currently operating at full employment.

  • The market for radios in Artland is competitive.

A.

Draw a correctly labeled graph of the production possibilities curve (PPC) for Artland in the space provided for Figure 1, with radios on the horizontal axis and televisions on the vertical axis. Label a point A that represents full employment and efficient production. Label a point B that represents inefficient production.

B.

Assume that Artland develops a new technology that improves the production of radios but has no effect on the production of televisions. On your graph in part A (Figure 1), show the effect of this new technology.

Table 1: Production Data

Country

Radios Produced per Worker per Day

Televisions Produced per Worker per Day

Artland

20

10

Rayland

15

5

C.

Artland decides to trade with a neighboring country, Rayland. Assume for the following parts that opportunity costs are constant. The table below (Table 1) shows the maximum daily output of radios or televisions for a single worker in each country.

i.

Using the data in Table 1, calculate the opportunity cost of producing one television in Artland. Show your work.

ii.

Using the data in Table 1, calculate the opportunity cost of producing one television in Rayland. Show your work.

D.

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

E.

Identify one specific numerical value for the terms of trade (in terms of radios) that would be beneficial for both countries to exchange one television.

F.

Draw a correctly labeled graph of the market for radios in Artland in the space provided for Figure 2. Show the equilibrium price and quantity, the price ceiling labeled PCP_CPC​, the quantity demanded labeled QDQ_DQD​, and the quantity supplied labeled QSQ_SQS​. Assume the government of Artland imposes a binding price ceiling in the market for radios.

Required Graph Drawings

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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.