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AP Micro I Flashcards | StudBud

Explore/AP Micro I

AP Micro I

10 terms·StudBud Administration·325 plays

Preparation for the Upcoming AP Microeconomics Exam

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Questions 10

Answers

1
Monopoly deadweight loss is caused by
MC>MB
MC=MB
P=MC
P>MC
2
Which of the following will decrease the demand for pizza, a normal good?
A scientific discovery indicates pizza makes you live longer
Consumer incomes rise
The price of pepperoni falls
Consumer incomes fall
3
If the demand for tennis rackets increases, what prediction can be made regarding tennis balls?
The price of tennis balls will remain the same
The price and and quantity of tennis balls will rise.
The quantity supplied of tennis balls will remain the same
The demand for tennis balls will decrease
4
It is beneficial for two countries to trade when there is
an absolute advantage in production between the two
increasing returns to scale
a mutually beneficial trade agreement
a comparative advantage in production between the two
5
Which of the following is NOT true?
If MC> MR, producing less is optimal.
MC strikes AVC at its minimum
MC strikes AFC at its minimum
MC strikes ATC at its minimum
6
If a 30% rise in gas prices creates a 0% decrease in quantity demanded, the demand is
perfectly inelastic
elastic
perfectly elastic
inelastic
7
Which factor contributes to price elasticity of supply?
Consumer expectations regarding future prices
Producer Tastes and Preferences
Inflexibility of sellers
Time
8
What is the profit maximizing quantity of output?
Qae
Pm
Pae
Qm
9
A single firm that has market power in the labor market is known as a(n)
monopsony
monopolistically competitive
perfectly competitive
oligopoly
10
A point lying within the production possibilities curve is
efficient
unattainable, yet efficient
attainable and inefficient
attainable and efficient