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AP Microeconomics Flashcards | StudBud
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AP Microeconomics
AP Microeconomics
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1
Which of the following is a characteristic ofa public good?
It yields substantial spillover costs.
It is excludable.
It is nonrival in consumption.
2
For the firm which combination of output and price will maximize its profit
Q1, P3
Q3, P1
Q2, P2
Q1, P4
3
A good for which an increase in income causes an increase in demand, and vice versa.
Normal Good
Utility
Inferior Good
4
Situation in which the quantity supplied exceeds the quantity demanded for a good or service
Shortage
Supply
Surplus
5
Which of the following is a result of increasingreturns to sale?
Downward-sloping long-run average totalcost curve
Upward-sloping short-run marginal costcurve
Downward-sloping marginal physicalproduct of labor curve
6
The marginal physical product of the secondworker is
44
25
19
22
7
In short run which of the following costs mustcontinuously decrease as output producedincreases
Total fixed cost
Average fixed cost
Total variable cost
Average total cost
8
A large group of buyers and sellers who are buying and selling the same good or service.
Market Economy
Market
Seller
9
Average amount of income generated per unit of goods sold. Is equal to TR/Q
Average Revenue
Marginal Cost
Average Variable Cost
10
According to the diagram, what is the dollaramount of the unit tax?
$0.55
$1.00
$1.45
$0.45
11
Which of the following parts of the marginalcost curve lie on the firms short runsupply curve
RSTUV
RS
TUV
STU
12
When the price of one good increases, demand for the other good increases.
Inferior Good
Normal Good
Substitute Good
13
Firm is experiencing economies of scale which of the following will decrease as outputincreases
Long-run total cost
Fixed cost
Marginal revenue
Long-run average total cost
14
Which of the following indicates that a perfectlycompetitive firm is in long-run equilibrium?
Price equals marginal cost, which equalsaverage total cost
Price equals average fixed cost.
Price equals average revenue.
15
An increase in the supply of coffee could becaused by
an increase in the demand for coffee
a decrease in the cost of labor used toproduce coffee
a decrease in the cost of labor used toproduce coffee
16
A small number of firms who act together to set monopoly prices and make monopoly profits.
Monopoly
Oligopoly
Cartel
17
If the firm produces 10 units of output, itseconomic profits will equal
0
$100
$150
$50
18
A supply or demand curve which is relatively responsive to changes in price.
ATC
Inelatsic
Elastic
19
The price of a good or service at which quantity supplied is equal to quantity demanded.
Equilibrium Market
Equilibrium Quantiy
Equilibrium Price
20
The profit-maximizing firm depicted in the graphabove should
produce the output that minimizes average totalcost
exit if conditions do not improve in the long run
increase price to maximize profits
use less capital and more labor to reduce cost
21
Which of the following best describes anoligopolistic market?
No competition among sellers and highbarriers to entry
Few sellers with similarproduct and high barrier to entry
Many sellers with identical products and nobarrier to entry
22
The basic economic problem of all economies is one of deciding how to make the bestuse of
unlimited resources to satisfy unlimitedwants
unlimited resources to satisfy limited wants
limited resources to satisfy limited wants
limited resources to satisfy unlimited wants
23
If a good is available free of charge, an individualwill consume it until
marginal utility equals total utility
marginal utility is zero
marginal utility equals average utility
total utility is zero
24
The amount of goods and services that buyers are willing to purchase.
WTP
Price
Demand
25
Maximum price set by the government on a specific good.
Price Floor
Revenue
Price Ceiling
