What is the hourly rental price of a machine? Explain. (A) Assume that GCR is making economic profit. (c) Assume that consumers always buy 20 units of good R each month regardless of its price. Fiveable’s Guide to the 2020 AP Exam Updates, https://apcentral.collegeboard.org/courses/ap-microeconomics/exam/past-exam-questions. (i) How will the new technology affect the quantity of the workers hired? What will happen to each of the following? You’ll explore the factors that drive the behavior of companies and learn about the perfect competition model. Show on your graph in part (a) the effect of the wage increase on the marginal cost curve in the short run. (c) Assume a per-unit subsidy is provided to Steverail. The demand for ethanol has significantly increased. Sugar is freely traded in the world market. (i) Steverail’s loss-minimizing price and quantity, labeled Pm and Qm , respectively (ii) The area of economic losses, shaded completely (iii) The allocatively efficient quantity, labeled Qe (b) If Steverail raised the price above Pm identified in part (a)(i), would total revenue increase, decrease, or not change? Using the labeling on the graph, identify the area of profit or loss. Explain (d) Assume Nirali has a goal of maximizing the sum of her test scores. (a) Using the labeling on the graph, identify the area representing each of the following at the market equilibrium. (i) The consumer surplus (ii) The deadweight loss, Monopoly graph, economic profit, socially optimal quantity. You must show your work. Using the labeling of the graph, identify each of the following. On your graph show the equilibrium price and quantity (Pm and Qm) and the profit maximizing quantity of corn produced by the representative farmer earning zero economic profit (Qf) (b) Assume the demand for ethanol increases, show what will happen to the following on your graph in part (a) (i) The market price and quantity (ii) The area of the profit or loss earned by the representative corn farmer shaded completed (c) Relative to your answer in part (b) state what will happen to the market equilibrium price and quantity of corn in the long run. (ii) What is the after-tax price that the sellers now keep? (i) In this case, is the market equilibrium quantity of fireworks greater than, less than, or equal to the socially optimal quantity? Both firms know all of the information in the payoff matrix. The typical firm is earning positive economic profit in the short-run equilibrium. (b) Calculate the total consumer surplus if Martha consumes 5 units of X. Indicate the effect the subsidy would have on each of the following in the short run. Outdated Prompts: https://apcentral.collegeboard.org/courses/ap-microeconomics/exam/past-exam-questions, Your email address will not be published. ap classroom calculus bc answers, venture publishing ap calculus ab answers truckus ru. At this point, the College Board has decided that most tests will be taken either at home or online, and will only be comprised of the FRQ section of the exam. Sign in to My AP to access free support in AP Classroom, including AP Daily videos. Utility and price elasticity of demand are important concepts in explaining consumer behavior. (a) If the firm uses one unit of capital and one unit of labor, will it be operating with constant, increasing, or decreasing returns to scale? AP Microeconomics Course and Exam Description. Explain. Find colleges that grant credit and/or placement for AP Exam scores in this and other AP courses. The cross-price elasticity of coffee with respect to muffins is -2. Explain. We’ve created a sortable table of all the. Assume that CableNow does not practice price discrimination. Callahan’s Orchard grows apples and operates in a constant-cost, perfectly competitive apple industry. View a summary of all 2021 AP Exam formats. (e) Assume that a new study reveals there are external benefits associated with watching TV. The course content outlined below is organized into commonly taught units of study that Explain. Required fields are marked *. This is the Administration 2 date for the AP Microeconomics Exam. Learn more about 2021 testing. The AP Micro FRQs make up 33% of your exam score. What happens to the opportunity cost of studying history? (c) Given the world price of $2, what per-unit tariff maximizes the sum of Loriland’s domestic consumer surplus and producer surplus? Statistics. (a) For a competitive market for which there is a binding (effective) price ceiling, draw a correctly labeled graph and label the price ceiling “PC”, the quantity sold “QA”, and the socially efficient output “QB”. (a) What is Dana's total benefit from purchasing 2 bottles of water and 1 unit of good X? (i) The socially efficient quantity (ii) The consumer surplus at the socially efficient quantity (d) Is the monopolist facing the regulation in part (c) earning a positive economic profit, earning zero economic profit, or incurring a loss? Social efficiency is affected by government policy and the structure of markets. Redraw your graph from part A and label the ceiling price as P2. The information below applies to AP Microeconomics only. The single question on the 2020 AP English Literature and Composition Exam is a Prose Fiction Analysis question, which is FRQ 2 on a traditional AP … (d) Suppose that when the price of toy cars increases by 10 percent, Theresa buys 5 percent fewer toy cars and 4 percent less of a different toy, blocks. Supply and Demand, excise taxes, tax burden, Assume that gasoline is competitive and that demand is relatively inelastic and supply is relatively elastic (a) Draw a correctly labeled graph of the gasoline market and show the equilibrium price and quantity Pe and Qe. Explain. (a) In which market structure do these firms operate? (e) Suppose the monopolist perfectly price discriminates and maximizes profit. You’ll examine the conditions under which markets may fail and the effects of government intervention in markets. (c) If the two firms cooperate in choosing locations, where will each firm locate? Explain. Pride Textiles hires its workers in a perfectly competitive labor market and the wage rate is $80/day. Marginal analysis, elasticity, income elasticity, cross price elasticity. c) In the Nash equilibrium, determine each of the following. Show your work, (a) What actions maximize the combined total profits for Patrick's Pie and Dee's Pizzeria? Determine outcomes of specific economic situations, Model economic situations using graphs or visual representations. (i) Calculate the amount of tax revenue. Any firm that locates south of the city will receive a subsidy of $2,000 per day. Some of the sugar consumed in Loriland is produced domestically while the rest is imported. (i) The equilibrium rental price of machines in the factor market, labeled as PR (ii) John Lamb’s equilibrium rental quantity of machines, labeled as QL (b) Assume that the popularity of widgets declines, decreasing the demand for widgets. Does the value of Theresa’s income elasticity indicate that bagels are normal goods, inferior goods, substitutes, or complements? (a) Using a correctly labeled graph, show each of the following. Using the labeling of the graph, identify each of the following. Draw a labeled graph of the corn market and show the following: (i) The binding price ceiling and (ii) The quantity purchased by consumers in the corn market, Production, Cost, and Perfect Competition, factor markets. (b) What is the dominant strategy, if any, for LaPizza? Schools report saving over 120 hours by simplifying their registration using Total Registration. Will this policy change CableNow’s profit-maximizing quantity of cable services? Some of my own students felt inadequately prepared to tackle these tough questions. Explain. All exams up to 2006 use question formats and rubrics that are very outdated. Use this list to practice! (i) The consumer surplus (ii) The producer surplus (b) Assume that the production of each unit of candy creates a negative externality equal to (p5 -p2 ). (a) Draw a correctly labeled graph of the market for good X and show each of the following. You’ll use graphs, charts, and data to analyze, describe, and explain economic concepts. (ii) What quantity will be produced? What will happen to his total revenue if Clark raises its price? Two competing retail firms, Red Shop and Blue Mart, are studying potential locations for new stores in the suburbs of a major city. Explain using the dollar values in the payoff matrix. Will the socially optimal quantity of cable services now be larger than, smaller than, or equal to the QS you identified in part (a)(iv) ? (a) Using correctly labeled side-by-side graphs of the factor market for machines and the John Lamb Company, show each of the following. For the short run, answer the following. (i) The number of firms in the industry. Use marginal analysis to explain why this combination is not optimal for Martha. In 2020, 422,000 students registered themselves online for over 834,000 AP Exams at 974 schools using Total Registration's service.Request a no obligation estimate to see how cost effective this service is. Find the 2020 exam schedule, learn tips & tricks, and get your frequently asked questions answered on Fiveable’s Guide to the 2020 AP Exam Updates. (c) Instead of granting a subsidy, assume now that the government chooses to require CableNow to produce the quantity at which CableNow earns zero economic profit. (1)The profit-maximizing output (2)The socially efficient output (ii) At the socially efficient output, is the monopoly making a profit or incurring a loss? (a) Using correctly labeled side-by-side graphs for the labor market and Ray's Stable, show each of the following: (i) The equilibrium wage and quantity for unskilled labor, We and Qe respectively (ii) The wage paid by Ray's Stable and the quantity of unskilled labor hired, labeled Wr and Qr, respectively (b) Is the marginal factor cost of unskilled labor for Ray's Stable greater than, less than, or equal to We? Sign in to access them. This is the core document for the course. (b) Assume there is an increase in the market wage rate for labor, a variable input. (a) Assume that the monopolist wants to maximize profit. Explain. (i) Will Steverail’s quantity increase, decrease, or not change? Explain (d) Soybeans are produced in a perfectly competitive market. (ii) Calculate the price elasticite of supply if price increases from $1 to $1.20. Explain. (D) Now assume the Patent expires. (b) Assume that the noise from the fireworks disturbs all of the neighbors. (i) The quantity produced (ii) The total revenue received by the monopolist (c) Instead, assume the monopolist charges a single price and is regulated to produce the socially efficient quantity. It’s important that you understand the rubrics and question styles going into the exam. What is the effect of the increased demand for ethanol on the equilibrium price and quantity in the cereal market in the short run? (c) Do firms in this market experience economies of scale, diseconomies of scale, or neither in long run equilibrium? Explain your answer using marginal analysis. There will be 2 free-response questions to answer within 45 minutes. Draw a correctly labeled graph and show the profit-maximising price and quantity. Explain. The payoff matrix is shown below, with the first entry in each cell indicating Red Shop’s daily profit and the second entry indicating Blue Mart’s daily profit. venture publishing ap calculus ab answers dorith de. Explain, (a) Nirali spends 3 hours studying microeconomics and 2 hours studying history. How many hours per exam should she study? FillUp is earning a positive economic profit (a) Draw a correctly labeled graph for FillUp and show each of the following (i) FillUp's profit maximizing quantity, Qf, (ii) FillUp's profit-maximizing price, labeled Pf, (iii) The deadweight loss associated with FillUp's profit maximizing quantity, shaded completely (iv) the maximum quantity at which fillup would earn zero economic profit, labeled Qz (b) Assume that FillUp's fixed costs increase becase of a new lease on its property and FillUp stays in business. Explain (d) If demand for the new device increases, explain what will happen to each of the following in the short run (i) Profit Maximizing Output (ii) Total cost, Consumer and Producer surplus, price controls. There are two pizza restaurants in College Town, PieCrust and LaPizza. CableNow is an unregulated firm and is currently earning an economic profit. Here’s why. (b) Draw a correctly labeled graph and show the profit maximizing price and output and the area of loss (c) Assume Clark is maximizing profit. (i) Using the labeling in the graph, identify each of the following. In the payoff matrix below, the first entry in each cell indicates PieCrust’s daily profit, and the second entry indicates LaPizza’s daily profit. Find the value of: the monopolist's profit and the new consumer surplus, Perfectly competitive labor market, minimum wage. The graph below shows Loriland’s sugar market, and PW represents the world price. If you are using assistive technology and need help accessing these PDFs in another format, contact Services for Students with Disabilities at 212-713-8333 or by email at [email protected] 1 AP Practice Test FRQ pg. (d) At QR, is the firm’s accounting profit positive, negative, or zero? (C) Assume instead that a per-unit subsidy is granted. Thurs, May 21. (a) If Red Shop chooses a location south of the city, which location is better for Blue Mart? You’ll learn how concepts such as supply and demand and marginal decision-making apply in the context of factor markets. Testing a Claim. (c) Assume that the government imposes a per-unit tax of (p5 -p2 ) to correct for the negative externality. Assume that the market for home security systems is perfectly competitive and in equilibrium (a) Graph supply and demand and show the equilibrium price and quantity and CS and PS (b) Suppose the government imposes an effective price ceiling. For special occasions some people purchase and set off fireworks in their backyards. (i) Will the deadweight loss increase, decrease, or not change? (i) Identify the new level of domestic production. It clearly lays out the course content and describes the exam and AP Program in general. Explain. (b) When the output is 8 units, what is the profit per unit? free download here pdfsdocuments2 com. Explain. Explain. Save my name, email, and website in this browser for the next time I comment. Also, the response never waivers from its Corresponding free-response question (FRQ) type in the course and exam description binder. (b) On your graph in part (a), label the output at which total revenue is maximized Qr. (i) Marginal product curve for machine-hours (ii) Marginal revenue product curve for machine-hours. Explain using numbers from the payoff matrix (c) Doesn Patrick's Pie have a dominant strategy? (a) Assume that Farmer Roy is making zero economic profit in the short run. (ii) In this case, if the government bans fireworks, will the deadweight loss increase, decrease, or remain unchanged? What will happen to consumer and producer surplus? Show the effect of the wage increase on the graph, labeling the initial quantity of labor hired QL1 and the new quantity of labor hired QL2. All exams up to 2006 use question formats and rubrics that are very outdated. (i) Are coffee and muffins normal, inferiour, complementary, or substitute goods? Assume that corn is produced in a perfectly competitive market. Show your work (c) Martha is currently consuming 4 units of X and 2 units of Y. ap calculus bc chapter 4 test no calculator section. (i) The profit-maximizing quantity of cable services, labeled as Q* (ii) The profit-maximizing price, labeled as P* (iii) The area of economic profit, completely shaded (iv) The socially optimal level of cable services, assuming no externalities, labeled as QS (b) Assume that the government grants CableNow a lump-sum subsidy of $1 million. (b) The table below shows the quantities, prices, and marginal utilities of two goods, fudge and coffee, which Mandy purchases. Explain (d) Single Cinema hires workers in a perfectly competitive labor market. (c) Assume that avocado producers hire workers from a perfectly competitive labor market. (ii) Does the price floor correct the market failure? Supply and demand, negative externalities, The graph above shows the perfectly competitive market for hard candies in Country Alpha. AP Microeconomics can lead to a wide range of careers and college majors, Comparative advantage and gains from trade, Unit 3: Production, Cost, and the Perfect Competition Model, Unit 6: Market Failure and the Role of Government, Market equilibrium, disequilibrium, and changes in equilibrium, The effects of government intervention in markets, Changes in factor demand and factor supply, Profit-maximizing behavior in perfectly competitive factor markets, Socially efficient and inefficient market outcomes, The effects of government intervention in different market structures. While this post was originally designed for the regular, full-length version of the exam, we’ve included a list of updates to keep track of for the 2020 exam. (ii) Assume supply for coffee is perfectly elastic. AP Daily and AP Classroom Short, searchable AP Daily videos can be assigned alongside topic questions to help you cover all course content, skills, and task models, and check student understanding. 20 noteworthy quotes, lyrics, and captions from Black celebs; Kelsea Ballerini: 'Mean Instagram comments hurt my feelings... so I turned them off' (e) Suppose the government instead imposes an $8 price floor. (d) Assume that the south suburb has enacted an incentive package to attract new business. Millions of students use StudyMode to jumpstart their assignments. (i) Show on your graph in part (a) the effect of the increase in demand for ethanol on the market price and quantity of corn in the short run, labeling the new equilibrium price and quantity as PM2 and QM2, respectively. (ai) Does Breadbasket have a dominant strategy? Explain (b) If Roadway chooses an early departure, which time is better for Rankin Wheels? Assume John Lamb employs a fixed number of employees and rents a machine for a variable number of hours from a perfectly competitive market. Explain. Explain (iii) Calculate the firm's ATC for its current level of production and show your work (iv) If the firm's output is sold in a competitive market, what is the lowest output price at which the third unit of labor would be hired? Explain (c) Assume that the monopolist produces 10 units .Calculate each of the following and show your work (i) The monopolist's economic profit (ii) The consumer surplus (iii) The deadweight loss (d) At what quantity is demand unit elastic? in 2005, there are only released exams up to 2006 with questions using the updated format. While this post was originally designed for the regular, full-length version of the exam, we’ve included a list of updates to keep track of for the 2020 exam. calculus ab section ii part a warren county public schools Explain. *AP® and Advanced Placement® are registered trademarks of the College Board, which was not involved in the production of, and does not endorse, this product. A typical profit-maximizing firm in a perfectly competitive constant cost industry is earning a positive economic profit (a) Is the market price greater than, less than, or equal to the firm's price? (d) Corn is also used as an input in the production of cereal. suite 2 (ii) What happens to FillUp's profit-maximizing quantity and price in the short run assuming the firm continues to operate? given your answer to part (d), will Nirali allocate the additional hour to studying microecnomics or history? Pride textiles produces and sells towels in a perfectly competitive market. Alex Trebek’s family donate his wardrobe to help the homeless Each cafe produces a slightly differentiated product and there are no barriers to entry or exit and the firm is in long run equilirbium (a) Draw a correctly labeled graph showing Camden's demand curve, marginal revenue curve, marginal cost curve, and the LRATC curve. Your email address will not be published. Show your work, (a) What is Martha's marginal benefit of the fifth unit of good X? Redraw the payoff matrix to reflect the effect of the higher advertising costs. While you can’t predict exactly what the questions will be, by looking at past exams, you can notice trends of specific types of questions the CollegeBoard likes to ask, like question #1 typically being about perfect competition or a monopoly, and marginal analysis being a popular topic. Farmer Roy is a typical producer of corn. (iii) Suppose the price of a unit of good X drops to $3. Study the principles of economics that apply to the behavior of individuals within an economic system. The AP Micro exam will take place on May 20th at 4PM Eastern. Explain (c) Now assume the government imposes an effective minimum wage (i) Show the minimum wage on your graphs in part (a), labeled Wmin (ii) On the labor market graph, show the quantity of unskilled labor supplied in the labor market as a result of the minimum wage, labeled Qs (iii) As a result of the new minimum wage, will the marginal revenue product of the last worker hired by Ray's stable increase, decrease, or stay the same? (ii) Show on your graph in part (a) the effect of the increase in demand for ethanol on Farmer Roy’s quantity of corn in the short run, labeling the quantity as QF2. (b) Assume that the price of wheat, an input for the production of bagels, increases. On your graph in part (a), show each of the following. Notes for the 2020 New AP Micro Exam For this year only, due to COVID-19 and widespread school cancellations, there will be a major update to how the AP Exams will work this year. A one-semester, introductory college course in microeconomics. (i) What is the marginal revenue for the eighth unit? Using the labeling on the graph, identify the area representing each of the following. (e) Nirali learns that her tennis practice has been cancelled, freeing up an additional hour for studying. Each company must decide whether to advertise or to not advertise. (ii) Calculate the domestic consumer surplus for Loriland. Draw a graph of labor supply and demand for the typical firm and label the supply curve MFC and the demand curve MRP. Be sure to review the Chief Reader Report (2019 versions available later this fall). Explain. (B) What is HZRad's profit maximising output level? Show your work (iii) Between $1 and $1.20, is supply elastic, unit elastic, or inelastic? 2550 north lake drive (a) Draw a correctly labeled graph for CableNow and show each of the following. It clearly lays out the course content and describes the exam and AP Program in general. The chart only includes prompts that use the up to date format, but all past prompts before then are also linked below. (i) How many units will consumers and producers exchange at the price floor? (i) PieCrust’s daily profit (ii) LaPizza’s daily profit (d) Suppose that advertising costs increase by $60 per day. (c) Is the demand price elastic, inelastic, or unit elastic between the prices of $5 and $6 ? Find A+ essays, research papers, book notes, course notes and writing tips. Both firms have complete information. content differently based on local priorities and preferences. (b) The graph below shows a natural monopoly. Identify the monopolist's (i) Profit maximizing quantity and (ii) Profit maximizing price (b) What information indicates that there is a negative externality (c) Identify the socially optimal quantity (d) In the case in which the government imposes a per-unit tax equal to the marginal external cost, identify each of the following (i) The dollar value of the tax, using price labels from the graph (ii) The profit-maximizing quantity associated with the tax (e) Given the monopoly facing the negative externality, would the DWL increase, decrease, or stay the same? (b) Suppose that Loriland imposes a per-unit tariff on sugar imports and the new domestic price including the (a) Draw correctly labeled side-by-side graphs for the apple market and Callahan’s Orchard, and show each of the following. Take A Sneak Peak At The Movies Coming Out This Week (8/12) Jeff Bezos stepping down is good news. (d) What is Martha's optimal combination of goods X and Y? (ii) What will happen to GCR profits? AP Statistics Exam - AP … Your teacher may choose to organize the course Explain (d) Now suppose the market is in long run equilibrium. (e) Indicate whether each of the following will cause the optimal quantity of good Y to increase, decrease, or stay the same (i) The price of Y doubles (ii) Martha's income falls to $10 with no changes in price (iii) Martha's income doubles and the price of both goods double, Camden's cakery is one of many cafes serving a local community.