FRQ 1 – Long

Overview

• 1 long free-response question worth 10 points
• Approximately 25 minutes to complete (out of 60 minutes total for all FRQs)
• Makes up 16.7% of your total exam score (half of the FRQ section)
• Calculator allowed - use it for precise calculations
• Always includes multiple parts testing different economic concepts
• Typically integrates 2-3 major topic areas (like perfect competition with factor markets)

The long FRQ is where you show deep understanding. Unlike multiple choice where you select from options, here you must construct graphs, perform calculations, and explain economic relationships. The 10-point structure means partial credit is available - even if you struggle with one part, you can still earn points on others.

Strategy Deep Dive

The long FRQ requires a different mindset than multiple choice. You're not just identifying correct answers - you're building economic arguments. Each part connects to the others, creating a coherent economic scenario. Understanding this interconnectedness is crucial for success.

Reading and Planning Phase

Spend the first 2-3 minutes just reading and understanding the entire question. Don't start drawing or calculating immediately. Map out the economic story: What market structure are we in? What's the initial equilibrium? What changes occur? This mental mapping prevents the common mistake of contradicting yourself between parts.

Circle or underline key economic terms. If it says "perfectly competitive constant cost industry," that tells you three crucial things: horizontal firm demand curves, free entry/exit, and a horizontal long-run market supply curve. Missing any of these details will cost you points. The graders are looking for evidence that you understand these distinctions.

Graph Construction Strategy

Graphs are typically worth 30-50% of the points on a long FRQ. The key to graph points isn't artistic quality - it's economic accuracy. Your graphs must be correctly labeled, economically sound, and directly address what the question asks.

For market graphs, always include: properly labeled axes (P and Q), supply and demand curves labeled (S and D), equilibrium point labeled, and specific values if given in the problem. Don't add elements the question doesn't ask for - this can actually lose you points if you mislabel something.

For firm graphs in perfect competition, remember the suite of curves: demand (horizontal), marginal revenue (same as demand), marginal cost (U-shaped), average total cost (U-shaped), and sometimes average variable cost. The positioning matters - MC must intersect ATC at its minimum, and your profit-maximizing quantity must show P = MR = MC.

When questions ask you to shade profit or loss, shade the entire rectangle. Don't just mark it - fill it in completely. The height is the difference between price and ATC, the width is the quantity produced. Partial shading suggests you're unsure and won't earn full credit.

Calculation Precision

With calculators allowed, there's no excuse for computational errors. But calculations on FRQs aren't just about getting numbers - they're about showing economic reasoning. Always set up the calculation conceptually before computing.

For profit calculations, explicitly write: Profit = Total Revenue - Total Cost = (P × Q) - (ATC × Q) = Q(P - ATC). Then substitute values. This shows you understand profit conceptually, not just procedurally. Even if you make an arithmetic error, you can earn partial credit for the setup.

For elasticity calculations, show the percentage change formula. Write out: %ΔQ = (Q₂ - Q₁)/Q₁ × 100. Do the same for price. Then divide. This careful approach prevents sign errors and shows clear thinking.

Explanation Requirements

When the question says "explain," you must provide economic reasoning, not just state facts. There's a crucial difference between "Consumer spending increases" and "Consumer spending increases because demand is inelastic, meaning the percentage increase in price outweighs the percentage decrease in quantity demanded."

Explanations should follow a clear logical chain. Start with the economic principle, apply it to the specific scenario, then state the conclusion. For example: "A binding price floor set above equilibrium creates excess supply. At $7, quantity supplied exceeds quantity demanded. so, a surplus of potatoes occurs."

Rubric Breakdown

Understanding how points are awarded transforms your approach. Each point has specific criteria that graders check systematically. You can't earn points accidentally - you must deliberately address each requirement.

Drawing Correctly Labeled Graphs (4-5 points typical)

Each graph point has distinct requirements. For a market graph showing equilibrium:

• 1 point: Correctly labeled axes (P and Q or Price and Quantity)
• 1 point: Downward-sloping demand and upward-sloping supply curves, labeled
• 1 point: Equilibrium point clearly marked where curves intersect
• 1 point: Specific values labeled if provided (like P = $5)

Missing labels is the most common point loss. A curve without a label is just a line. An equilibrium without a label is just an intersection. Graders won't infer what you mean - you must explicitly label everything requested.

For firm graphs in perfect competition:

• 1 point: Horizontal demand curve at the market price
• 1 point: MC curve intersecting the demand curve, with Q labeled at intersection
• 1 point: ATC curve positioned correctly relative to price (showing profit or loss)
• 1 point: Profit/loss area shaded completely and correctly

Numerical Analysis (1-3 points typical)

Calculation points require both correct setup and correct answers. Showing work is mandatory. A bare answer, even if correct, might not earn full credit. The rubric typically awards:

• 1 point: Correct formula or setup
• 1 point: Correct final answer

For more complex calculations like elasticity:

• 1 point: Correct percentage changes calculated
• 1 point: Correct division and final elasticity value
• Sometimes 1 point: Correct interpretation (elastic/inelastic/unit elastic)

Economic Explanations (2-3 points typical)

Explanation points look for specific economic reasoning. Generic statements don't earn credit. The rubric typically requires:

• Identification of the relevant economic concept
• Application to the specific scenario
• Clear statement of the outcome or effect

For example, explaining why consumer spending increases with a price floor:

• Must state demand is inelastic (|Ed| < 0.92 < 1)
• Must connect this to the spending formula (P × Q)
• Must conclude that the price increase effect dominates

Making Assertions (1-2 points typical)

Some parts just ask "what happens" without requiring explanation. These are often single-point questions testing whether you can apply economic logic quickly. For these:

• State the direction of change clearly (increases/decreases/remains unchanged)
• Be specific about what changes (price, quantity, profit, etc.)
• Don't over-explain when not asked - it wastes time

Common Patterns in Long FRQs

Years of exams reveal consistent structures in long FRQs. Recognizing these patterns helps you anticipate question flow and check your work for consistency.

The Classic Competitive Market Story

This pattern appears frequently: A perfectly competitive market starts in long-run equilibrium. Then something changes (demand shifts, costs change, or government intervenes). You must show:

• Initial equilibrium (both market and firm)
• Short-run effects of the change
• Long-run adjustments through entry/exit
• New long-run equilibrium

The key insight: in perfect competition, long-run economic profit always returns to zero through entry and exit. If your answer shows sustained profits or losses in the long run, you've made an error.

The Government Intervention Sequence

Another common pattern: A market operates freely, then government intervenes (price control, tax, or subsidy). You analyze:

• Effects on price and quantity
• Changes in consumer and producer surplus
• Deadweight loss created
• Often, effects on related markets

Remember that price floors create surpluses (QS > QD) while price ceilings create shortages (QD > QS). The question often asks about government purchases of surpluses or the size of shortages.

The Factor Market Extension

Long FRQs often connect product markets to factor markets. After analyzing the product market, they ask about labor demand, wages, or employment. Key connections:

• Product price changes affect MRP (MRP = MP × P)
• Product demand shifts affect derived demand for labor
• Market structure in the product market affects factor market analysis

When product price rises, labor demand shifts right because each worker's output is now more valuable. This integrated thinking across markets is what earns top scores.

The Elasticity Application

Elasticity isn't just calculated - it's applied. After finding elasticity, questions ask about:

• Revenue effects of price changes
• Tax incidence
• Surplus changes
• Optimal pricing strategies

If demand is inelastic and price rises, total revenue rises. This must be consistent with your elasticity calculation. Graders check for this consistency across parts.

Time Management Reality

The long FRQ demands significant time investment, but you can't afford to spend 40 minutes perfecting it. Here's how to balance thoroughness with efficiency.

Allocate your 25 minutes roughly as follows:

• 3 minutes: Read entire question and plan approach
• 15 minutes: Work through parts systematically
• 5 minutes: Check and refine answers
• 2 minutes: Buffer for unexpected complexity

The middle 15 minutes is where discipline matters. Spend proportional time based on point values. If part (a) is worth 3 points and part (c) is worth 1 point, don't spend equal time on them. This seems obvious but is hard to put in place under pressure.

When you hit a difficult part, make a strategic decision. If you're completely stuck, write down what you know and move on. Partial credit is available, and you might gain insights from later parts that help you return to the difficult section. Sometimes part (d) actually hints at what part (b) was asking for.

Graph construction typically takes the longest. Budget 2-3 minutes per graph to ensure proper labeling. Rushed graphs with missing labels are the most common way students lose easy points. It's better to have fewer elements correctly labeled than more elements ambiguously marked.

Integration and Synthesis

The long FRQ tests whether you can think like an economist across multiple concepts. Excellence requires more than just answering each part correctly - it requires seeing how the parts connect.

When the question moves from product markets to factor markets, your answers must be consistent. If firms are earning profits in the product market, they should be expanding production and demanding more labor. If product demand falls, derived demand for labor must also fall. These logical connections are what separate adequate responses from excellent ones.

Similarly, when government intervention is introduced, consider all effects. A price floor doesn't just create a surplus - it also affects producer incentives, consumer behavior, and potentially related markets. The question might ask about substitute goods or input markets. Your economic thinking should flow naturally from one market to another.

The best responses show economic intuition beyond mere mechanics. When explaining why something happens, ground it in fundamental principles. Markets move toward equilibrium. Firms maximize profit. Consumers maximize utility. Government intervention creates deadweight loss unless correcting market failure. These principles should underpin your analysis throughout the question.

Final Thoughts

The long FRQ is your opportunity to show comprehensive understanding. Unlike multiple choice where partial knowledge might help you guess correctly, here you must construct complete economic arguments. This is challenging but also rewarding - it's where your deep preparation pays off.

Success requires three elements: technical accuracy (correct graphs and calculations), economic reasoning (logical explanations), and integration (seeing connections between parts). Master all three, and you'll consistently earn 8-10 points on these questions.

Practice with past FRQs, but don't just check answers. Study the scoring guidelines to understand exactly what earns each point. Notice how many different ways there are to lose points through small omissions or mislabeling. Then notice how straightforward it is to earn points when you systematically address each requirement.

The long FRQ rewards preparation and punishes carelessness. Be careful, be complete, and trust your economic understanding. Those 10 points are entirely achievable with the right approach.