AP Microeconomics 🤑
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Multiple Choice Practice for Supply and Demand
Welcome to Unit 2 AP Macroeconomics Multiple Choice Questions! Grab some paper and a pencil 📄 to record your answers as you go. You can see how you did on the Unit 2 Practice Questions Answers and Review sheet once you're done. Don't worry, we have tons of resources available if you get stumped 😕 on a question. And if solo study is not your thing, join a group in Hours!
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Facts about the test: The AP Microeconomics exam has 70 multiple choice questions and you will be given 1 hour to complete the section. That means it should take you around 8 minutes to complete 10 questions.
*The following questions were not written by College Board and, although they cover information outlined in the AP Microeconomics Course and Exam Description, the formatting on the exam may be different.
1. If the price of wheat increases,
A. the quantity of wheat supplied will decrease.
B. the demand for wheat will increase and shift to the right.
C. the quantity of wheat demanded by consumers will decrease.
D. the demand of wheat will decrease and shift to the left.
2. All of the following are determinants of demand EXCEPT
A. Number of buyers
B. technology
C. Tastes and preferences of the consumers
D. change in consumer income
3. If the price of wheat decreases,
A. the quantity of wheat supplied will decrease
B. the supply of wheat will increase.
C. the supply of wheat will decrease.
D. the quantity of wheat demanded will decrease.
4. One determinant (shifter) of supply is
A. price of related goods
B. change in income
C. number of buyers
D. Taxes
5. If the price of a good increases by 10% and the quantity demanded of the good decreases by 25%, we would say
A. the good is relatively elastic.
B. the good is relatively inelastic.
C. the good is perfectly elastic
D. the good is unit elastic.
6. If the price of a good decreases by 40% and the quantity supplied decreases by 40%
A. the good is perfectly inelastic.
B. the good is perfectly elastic
C. the good is relatively inelastic.
D. the good is unit elastic.
7. All of the following are characteristics of an inelastic good EXCEPT
A. elasticity coefficient is less than 1
B. generic or low cost inputs
C. high barriers to entry
D. difficult to produce
8. The elasticity coefficient that determines if a good is a substitute or a complement to another good is called
A. price elasticity of supply
B. income elasticity of demand
C. cross price elasticity of demand
D. price elasticity of demand
9. If incomes decreases by 25% and the quantity of Product X decreases by 10%, we can say Product X is a
A. normal good
B. inferior good
C. substitute
D. complement
10. The difference in the high price of what a consumer was willing to pay versus the lower price they actually paid is called
A. Consumer surplus
B. Producer surplus
C. Consumer shortage
D. Producer shortage
11. If the price is above or below the price equilibrium, there will be a gap between the quantity produced and the equilibrium quantity that should have been produced. Economists call this gap in efficiency
A. scarcity.
B. consumer surplus.
C. producer surplus.
D. deadweight loss.
12. If a new tractor is invented which makes harvesting wheat easier than before at the same time a study suggests eating wheat products increases SAT scores, then_________.
A. more information is needed.
B. the quantity of wheat will increase and the price will decrease.
C. the quantity of wheat will increase but the price will be indeterminate.
D. the quantity of wheat will increase and the price will increase
13. What will happen if the government sets a legally enforced price floor for a good below the market equilibrium?
A. A black market will form for unregulated buying and selling of the good.
B. The market will experience shortages.
C. Equilibrium price and quantity will remain the same.
D. The market will have surpluses.
14. If the USA's domestic price for wheat is above the world price for wheat and the USA allows for free trade with other countries, then
A. the consumer surplus would be significantly more than the domestic producer surplus.
B. the domestic producer surplus will be significantly more than the consumer surplus.
C. The market will experience a surplus quantity of wheat.
D. The market for wheat will have shortages.
15. One way domestic producers can protect some of their producer surplus from foreign producers with a lower world price is
A. encourage the government to impose tariffs on imported goods.
B. encourage the government to set a price ceiling on the domestic goods.
C. encourage the government to deregulate the market more and open it to free trade with more countries at price lower than the world price.
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💸Unit 1 – Basic Economic Concepts
📈Unit 2 – Supply & Demand
🏋🏼♀️Unit 3 – Production, Cost, & the Perfect Competition Model
⛹🏼♀️Unit 4 – Imperfect Competition
💰Unit 5 – Factor Markets
🏛Unit 6 – Market Failure & the Role of Government
📝Exam Skills: FRQ/MCQ
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