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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 country of Agraria produces two goods: corn and wheat. Agraria's economy is currently operating at full employment.

  • The table below shows the maximum daily production of corn or wheat for one worker in Agraria and its trading partner, Industria.

  • Assume that opportunity costs are constant for both countries.

Table 1: Daily Production per Worker

Country

Corn (bushels per day)

Wheat (bushels per day)

Agraria

10

20

Industria

30

30

A.

Draw a correctly labeled graph of the production possibilities curve (PPC) for Agraria, with corn on the horizontal axis and wheat on the vertical axis. Label a point A that represents full employment and efficient production. Label a point 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 bushel of corn in Agraria. Show your work.

ii.

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

C.

Assume that the market for corn in Agraria is competitive. Draw a correctly labeled graph of the market for corn in Agraria (see Figure 2), and label the equilibrium price as PeP_ePe​ and the equilibrium quantity as QeQ_eQe​.

D.

Assume that a new fertilizer is developed that significantly increases the productivity of corn farming in Agraria.

i.

On your graph in part C, show the effect of the new fertilizer on the market for corn, labeling the new equilibrium price as P2P_2P2​ and the new equilibrium quantity as Q2Q_2Q2​.

ii.

As a result of the change in the market for corn shown in part D(i), what will happen to the demand for wheat in Agraria, assuming corn and wheat are substitutes in consumption? Explain.

E.

Assume the government of Agraria sets a binding price floor in the market for corn.

i.

On your graph in part C, draw a line representing the binding price floor, labeled PFP_FPF​.

ii.

Will the binding price floor result in a surplus, a shortage, or equilibrium in the market for corn? Explain.

Required Graph Drawings

Timed

00:00

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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.