WorksheetsAP Micro Final Review
Total questions: 35
Worksheet time: 18mins
In order to maximize profit a monopolist produces what quantity?
Where Marginal Revenue hits zero
At ATC's lowest point
Where Marginal Cost is equal to Marginal Revenue
Where the monopolist hits constant returns to scale
What type of market DOES NOT have deadweight loss?
Oligopoly
Monopoly
Perfect Competition
Monopolistic Competition
Oligopoly is connected to which concept?
Constant returns to scale
Game Theory
Tragedy of the Commons
The Laffer Curve
What happens to price and quantity in the market for hot dogs if the price of buns (a complement) rises?
P increase, Q increase
P decrease, Q increase
P increase, Q decrease
P decrease, Q decrease
What can the government do in this situation to move D1 to D2?
Tax buyers
Tax sellers
Provide subsidy to buyers
Provide subsidy to sellers
Demand for running shoes is elastic, if a producer wants to increase total revenue they should...
decrease price
increase price
increase global tariffs
supply less to the market
Which will always be a greater number?
Economic profit
Accounting profit
What is the per unit tax in the graph?
10
14
6
4
What is the DWL created by the tax?
150
100
200
250
Jeff earns $50,000 a year and pays 25% tax and Beth earns $100,000 and pays 12.5% tax, this is an example of what type of tax?
Progressive
Regressive
Proportional
Lump Sum
If ATC rises as Q rises you are operating at
Economies of scale
Constant returns to scale
Dis-economies of scale
If ATC falls as Q rises you are operating at
Economies of scale
Constant returns to scale
Dis-economies of scale
Consumer surplus is...
The area above demand and below price
The area below demand and above price
The area below demand and above supply
The area above supply and below prive
Which would cause an outward shift in a PPC?
Increase demand for the product
Decrease demand for the product
Increase in input costs
Improvement in technology
When quantity demanded is greater than quantity supplied there is ________________ in the market?
Shortage
Surplus
Free rider problem
Negative externality
Which of the following is a public good?
Jimmy John's Sandwich
A playground
A golf course
A water park
If there is a 20% increase in the price of burritos and the demand for burritos falls 10% the demand for burritos is...
Elastic
Inelastic
Perfectly Elastic
Perfectly Inelastic
If Mr. Purdom gets a raise and then runs out and buys a lot of burritos. We would consider burritos what type of good?
Inferior
Normal
Common Resource
Public Good
Where should a company hire workers?
MC=MR
Wage=MC
VMP(L) = Wage
MRC > MRP
To calculate marginal revenue product
multiply marginal revenue by marginal cost
multiple marginal product by product price
divide marginal revenue by marginal cost
divide marginal product by product price
In the short run...
No costs are variable
All costs are variable
There are fixed costs
There are no fixed costs
If Lock charges a high price, what is Star's best option?
High Price
Low Price
Wrong Answer
Also Wrong Answer
Wrong
How do you calculate profit?
MC=MR
Price + ATC
Price - ATC
Cost - AVC
If price falls below ATC, a firm should do what in the long run?
Shut down
Exit the market
Raise prices
Lay off workers
Which is not a characteristic of a perfectly competitive market?
Free entry and exit
Identical products
Price maker
Informed consumers
In a monopolistically competitive market, if P > ATC then what will happen?
Economic profit reduces the number of firms
Economic profit draws more firms to the market
Losses reduces the number of firms
Losses draws more firms to the market
A binding price floor causes a...
Shortage
Surplus
Increase supply
Removal of government regulation
What is deadweight loss?
Gained benefit to suppliers from voluntary exchange
Gained benefit to consumers from voluntary exchange
Lost benefit to society caused by movement away from market equlibrium
Legal maximum price that can be charged in a market
Quinton has dedicated two hours to studying for the AP Microeconomics exam. In order for Quinton to choose to spend an additional hour studying, which of the following is most likely true?
The marginal benefit of the additional hour is less than the marginal cost of the additional hour.
The marginal cost of the additional hour is less than the marginal benefit of the additional hour.
Both the marginal benefit and marginal cost are always equal in this scenario.
The marginal benefit of the first hour is less than the marginal cost of the second hour.
The marginal cost of the second hour is greater than the marginal benefit of the additional hour.
Suppose that a worker in Country A can grow either 40 bushels of corn or 10 bushels of oats per year, and a worker in Country B can grow either 20 bushels of corn or 5 bushels of oats per year. Which of the following statements is true?
Neither country has a comparative advantage
Country B has the absolute advantage in both goods.
Country A has the comparative advantage in oats.
Country A has the comparative advantage in both goods.
Country B has the absolute advantage in corn.
An increase in the price of Product A means a decrease in demand for Product B. Product A and B are most likely?
Complements
Subsititues
Inferior Goods
Normal Goods
What factor determines price in a centrally planned economic system?
Supply and Demand
Derived Demand
The government
The stockmarket
If the output effect is greater than the substitution effect, what will happen to the demand for labor?
Increase
Decrease
Remain the same
Increase initially then decrease in the long run
A firm that spends lots of money on advertising, is most likely what type of firm?
Monopoly
Monopolisitcally Competitive
Perfect Competition
Natural Monopoly
A PPC can show
Trade off
Opportunity Cost
Both Trade Off and Opportunity Cost
Nothing because I stopped caring about this Quizizz 12 questions ago.
