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WorksheetsAP Microeconomics Nit 3
Total questions: 15
Worksheet time: 15mins
SSEMI1 a: The SOLID arrows on this circular flow diagram represent the flow of
goods and services.
money.
taxes.
imports and exports.
SSEMI 3 a: Related goods, income, and preferences are variables MOST LIKELY to affect which part of a market?
supply
demand
quantity supplied
quantity demand
How are equilibrium price and quantity determined in most markets in the U.S. Economy?
government sets the price
consumer and producer interaction
by a point on a production possibilities curve
by the law of demand
The primary of role of money in the economy is to
help set interest rates at financial institutions.
provide a mechanism to assist foreign trade.
serve as a medium of exchange for goods and services.
identify prices in various markets.
Which explains why a supply line is upward sloping?
the Law of Supply states there is a direct relationship between price and quantity
the Law of Demand states there is an indirect relationship between price and quantity
the Law of Supply compares marginal costs and marginal benefits in a constant rate
the Law of Demand shows a positive relationship between two goods, creating the slope
SSEMI 2 c: What occurs to equilibrium price and quantity in a market if demand increases, but supply remains the same?
Price increases, quantity decreases
price decreases, quantity increases
price is unknown, quantity increases
price increases, quantity increases
When buyers and sellers interact in a market, what is the result?
Over time, fewer and fewer goods are produced because buyers have all they want.
Usually a market clearing price is determined.
Equilibrium quantities are determined and then prices are set by the government.
Since buyers and sellers are always changing their preferences, markets become unstable and unreliable.
SSEMI 2 c: The graph above shows how a change in equilibrium price and quantity can result from
a decrease in demand.
an increase in price.
an increase in supply.
a decrease in supply
The DASHED arrows on this circular flow diagram represent the flow of
goods and services.
money.
taxes.
imports and exports.
SSEMI 3 a: If the price of an item increases, demand for its substitutes
is unaffected
decreases
increases
there is no way to tell
SSEMI 4 c: Assume Company 1 and Company 2 operate as an oligopoly. Which statement BEST represents this?
They own many different "brands"
They are major corporations with stockholders
They control over 75% of the market
They have products that are different, but are marketed the same way
Company X sells a good where there is a lot of competition. Companies enter and leave the market often. Company X stays in business because they constantly use advertising to make their product seem different. In which market structure does Company X operate?
Pure Competition
Monopolistic Competition
Oligopoly
Monopoly
In the context of AP Microeconomics Unit 3, what is the primary focus of the concept of elasticity?
A) The responsiveness of quantity demanded or supplied to changes in price
B) The ability of a market to reach equilibrium
C) The impact of government intervention on market prices
D) The relationship between consumer preferences and utility
Which of the following best describes the concept of 'diminishing marginal returns' in production?
A) Increasing the quantity of one input while holding others constant will eventually lead to smaller increases in output
B) The total output increases at a constant rate as more inputs are added
C) The cost of production decreases as more units are produced
D) The relationship between input prices and output prices remains constant
In AP Microeconomics Unit 3, what is the significance of the 'short run' in production analysis?
A) It refers to a period where all inputs can be varied
B) It is a time frame in which at least one input is fixed
C) It is the time needed for a firm to enter or exit an industry
D) It is the period when all costs become variable
