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WorksheetsAP Micro - Interpreting Graphs
Total questions: 26
Worksheet time: 13mins
What does point A represent?
An efficient level of production
An inefficient level of production
An impossible level of production
What does point F represent?
An efficient level of production
An inefficient level of production
An impossible level of production
What does point W represent?
An efficient level of production
An inefficient level of production
An impossible level of production
If a price floor were imposed on this market at the horizontal line shown, what happens?
The market will clear at Pe and Qe
There will be a shortage of goods
There will be a surplus of goods
The floor is not binding at that price
If a price ceiling were imposed on this market at the horizontal line shown, what happens?
The market will clear at Pe and Qe
There will be a shortage of goods
There will be a surplus of goods
The ceiling is not binding at that price
If a price ceiling were imposed on this market at the horizontal line shown, what happens?
The market will clear at Pe and Qe
There will be a shortage of goods
There will be a surplus of goods
The ceiling is not binding at that price
In a competitive market at equilibrium, who benefits?
Producers have the most surplus
Consumers have the most surplus
Both producers and consumers benefit from voluntary exchange
Government regulations are necessary to ensure surpluses
As more units are produced...
Marginal costs continue to decline
Average total costs continue to decline
Average variable costs continue to decline
Average fixed costs continue to decline
What market structure is indicated by this graph?
Monopoly
Monopolistic Competition
Oligopoly
Perfect Competition
At Qe this firm is
experiencing positive economic profit
allocatively efficient
allocatively and productively efficient
experiencing economies of scale
In a competitive market, a firm's MR curve
is equal to demand
is equal to average revenue
is equal to price
all of the above
If the graphs show the coffee market, and a US coffeehouse, what happens if a pandemic reduces shipments of coffee beans?
increase in demand --> increase in price --> positive econ profit
increase in demand --> decrease in price --> negative econ profit
increase in supply --> increase in price --> positive econ profit
decrease in supply --> increase in price --> positive econ profit
If a perfectly competitive firm showed positive economic profits in the short run
it could collude with other firms to maintain profits
competitors would leave the market
competitors would enter the market
price in the market would increase
What market structure is indicated by this graph?
perfect competition
monopsony
monopoly
oligopoly
How much quantity does an unregulated monopolist produce?
Where D=MC
Where MC=MR
Where ATC=MR
Where MC=ATC
What price does an unregulated monopolist charge?
at D, where it crosses MC
at D, above where MC=MR
at the intersection of S and D
Where MC=ATC
Is this firm experiencing economic profit?
Yes, normal economic profit
Yes, positive economic profit
No, zero economic profit
No, negative economic profit
If this monopoly were regulated to produce at the Fair Return level, it would
Produce where MR=MC at price Pm
Produce where MR=ATC at price Pfr
Produce where D=ATC at price Pfr
Produce where D=MC at Qso
Is this firm earning economic profit?
Zero economic profit
Positive economic profit
Less than normal profit
Negative economic profit
In a perfectly competitive labor market
the firm is a wage maker
the firm is a wage taker
workers are paid a higher rate when the firm expands production
workers wages are set by the firm
In the labor market for engineers, an increase in the number of college graduates with engineering degrees will
shift the supply curve right, lowering engineer wages
shift the demand curve right, raising engineer wages
shift the supply curve left, raising engineer wages
shift the demand curve left, lowering engineer wages
What does this graph represent?
a perfectly competitive labor market
an imperfectly competitive labor market
A monopsonist will
Hire where MRP=MRC, but pay set by MRP
Hire where MRP=S but pay set by MRP
Hire where MRP=MRC, but pay set by S
Hire where MRP=S, but pay set by S
This graph represents
a negative externality with spillover costs
a positive externality with spillover benefits
This graph represents
a negative externality with spillover costs
a positive externality with spillover benefits
The demand for insulin by diabetics is represented by which curve
top graph -- elastic demand
top graph -- inelastic demand
bottom graph -- elastic demand
bottom graph -- inelastic demand
