💸 Unit 1: Basic Economic Concepts
1.0Unit 1: Basic Economic Concepts
1.1Basic Economic Concepts: Scarcity
1.2Resource Allocation and Economic Systems
1.3Production Possibilities Curve (PPC)
📈 Unit 2: Supply and Demand
2.4Price Elasticity of Supply
2.6Market Equilibrium and Consumer and Producer Surplus
2.7Market Disequilibrium and Changes in Equilibrium
2.8The Effects of Government Intervention in Markets
⚙️ Unit 3: Production, Cost, and the Perfect Competition Model
3.6Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
📊 Unit 4: Imperfect Competition
4.1Introduction to Imperfectly Competitive Markets
💰 Unit 5: Factor Markets
5.2Changes in Factor Demand and Factor Supply
5.3Profit-Maximizing Behavior in Perfectly Competitive Factor Markets
🏛 Unit 6: Market Failure and Role of Government
6.1Socially Efficient and Inefficient Market Outcomes
6.3Public and Private Goods
6.4The Effects of Government Intervention in Different Market Structures
⏱️ 3 min read
November 11, 2020
The AP Microeconomics Exam consists of two sections: (1) Multiple-Choice Questions (MCQs) and (2) Free-Response Questions (FRQs). The multiple-choice section consists of 60 questions, each with 5 answer choices. You have 70 minutes for the multiple-choice section which gives you a little over a minute per question. The Free-Response section consists of three questions: one long question and two short questions. 📚
A couple of important rules for the test:
Below is the breakdown of each section of the exam including the types of questions, how many questions, weighting and timing. ⏳
The AP Micro exam assesses content from the following four ideas for the course. Every question whether it be multiple-choice or free-response will involve content from these four areas. 📖
The College Board has given us a basic breakdown of how much each concept will be covered on the exam 📊:
In this section, you will have a total of 60 questions in which you will be tested on your ability to (1) define economic principles and models, (2) explain given economic outcomes, (3) determine outcomes of specific economic situations, and (4) answer questions based on a graph or visual representation that is provided. There will be about 20 - 30% of the multiple-choice questions that ask you to analyze number or perform calculations.
All of these questions can be found in the AP Microeconomics Course and Exam Description. Try the next few questions out! All the answers are at the bottom of this section.
1. B; This is basically the application of the definition of scarcity. Limited resources vs. unlimited wants.
2. C, the concept of marginal analysis
2. (Yes, there were two questions that were number two LOL.) C; When applying the economics concept of marginal analysis, we maximize our time and resources by participating in an activity where marginal benefit equals marginal cost. In the graph above marginal benefit and marginal cost meet at S2.
4. C; Economic surplus is maximized where quantity demanded equals quantity supplied which, in the graph above, is P2 and Q2.
6. C; When we calculate cross-price elasticity, we always divide the percent change in quantity demanded of Good A by the percent change in price for Good B. For cross-price elasticity, we also keep the positive and negative signs intact. So for this problem, we will divide -5 (quantity demanded change for cheese) by a +2 (price change for bologna). The answer is a negative (-) 2.5, which means that the goods are complements.
12. E; Profit-maximizing quantity is where MR=MC, which in this graph is Q1. Revenue-maximizing quantity is where Total Revenue (TR) is highest, which means that MR=0. In this graph, that is at Q3.
Check out the FRQ Section of this Guide in the Complement on AP Macro at Fiveable!
2550 north lake drive
milwaukee, wi 53211
92% of Fiveable students earned a 3 or higher on their 2020 AP Exams.
*ap® and advanced placement® are registered trademarks of the college board, which was not involved in the production of, and does not endorse, this product.
© fiveable 2020 | all rights reserved.