AP Economics FRQ Review.doc

7/25/2019 AP Economics FRQ Review.doc

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AP Microeconomics Free Response Questions

Production-possibilities Curve

1999 #2 Production-possibilities Curve (!e"t "nd clot! comp"r"tive "dv"nt"$e%

2&&' #' Production-possibilities Curve ("bsolutecomp"r"tive "dv"nt"$e terms o)

tr"de%

2&&* #' Production-possibilities Curve ("bsolutecomp"r"tive "dv"nt"$e terms o)tr"de%

+uppl, em"nd Price Floor Price Ceilin$ .l"sticit,

199& #2 /nel"stic Portion o) t!e em"nd Curve

1990 #2 +uppl,em"nd (circus price ceilin$%

199 #2 +uppl,em"nd (t" on ci$"rettes el"sticit, o) dem"nd%

199' #2 +uppl,em"nd (co))eecre"m suppl,dem"nd in product)"ctors m"r3ets%

199* #1 +uppl,em"nd (el"sticit, price )loor "lloc"tive e))icienc,%

2&&& #' +uppl,em"nd (t"ri))s el"sticit,%

2&&4 #2 +uppl,em"nd (t"es consumerproducer surplus de"dei$!t loss%

5tilit,

2&&2 #' 5tilit, ("pplesor"n$es tot"l utilit, m"r$in"l utilit,%

2&&* #2 5tilit, (utilit, m"r$in"l utilit, per)ectl, inel"stic t" on product%

Per)ect Competition

199& #1 Per)ect Competition (incre"se in dem"nd%

1990 #' Per)ect Competition (MC A6C A7C%

2&&1 #1 Per)ect Competition ($r"p!s A7C s!ut don 8R%19*9 #1 Per)ect Competition (price ceilin$%

1999 #1 Per)ect Competition (price ceilin$%

199' #1 Per)ect Competition (decre"se in ener$, costs MC A7C entr,eit%

2&&1 #1 Per)ect Competition ($r"p!s A7C s!ut don 8R%

1992 #2 Per)ect Competition (price ceilin$ incre"se in !oles"le price%

1991 #2 Per)ect Competition (c!"n$e in m"r$in"l "nd "ver"$e costs%

2&&4 #1 Per)ect Competition (dem"nd decre"se s!ut don rule lon$ run%

2&&0 #2 Per)ect Competition (costs)ied costs m"r$in"l cost pro)it

m"imi:"tion const"nt costs per-unit t"%

2&&* #1 Per)ect Competition ($r"p!s lump-sum subsid, pro)it lon$ run vs; s!ort

s!ort run%

Monopol,

19*9 #2 Monopol,

1992 #1 Monopol, (b"sic economic e))icienc,%

199' #' Monopol, (sin$le "irline )ied costs $o up%

199 #' Monopol, (b"sic b"rriers to entr,%

199* #' Monopol, (el"sticit, o) dem"nd price discrimin"tion%


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199< #2 Monopol, (norm"l pro)its economic e))icienc,%

2&&' #2 Monopol, (b"sic consumer surplus de"dei$!t loss%

2&&0 #1 Monopol, ($r"p! it! m"n, =uestions rel"tin$ to $r"p! "ccountin$ pro)its

"lloc"tive e))icienc,%

2&&< #1 Monopol, ($r"p! per-unit t" per-unit subsid,%

Per)ect Competition A> Monopol, (Combined%

1990 #1 Per)ect CompetitionMonopol, (dict"tor to PC economic e))icienc,%

1999 #' Per)ect CompetitionMonopol, ($r"p!s ? MR does not ? MR%

2&&& #1 Per)ect CompetitionMonopol, (el"sticit, consumer surplus "lloc"tive

e))icienc,%

2&&* #' Per)ect CompetitionMonopol, (price celin$ soci"l e))icienc, n"tur"l

monopol,%

Monopolistic Competition

2&& #' Monopolistic Competition @r"p!

li$opol,

2&&< #' @"me 6!eor, (Ro"d", "nd R"n3in%

F"ctors M"r3et

199< #1 MRP ? MFC (Bones 6-s!irts%

2&&1 #' MRP ? MFC (+p"r3le C"r "s! "$es%

2&&4 #' MRP ? MFC (MP MRP MFC !o m"n, or3ersD%

199* #2 MRP ? MFC (dim; M"r$in"l returns MPAP curve MP vs; A7C%

2&&' #' MRP ? MFC (de)inition o) MRP side-b,-side $r"p! o) PC o) PC l"bor industr,individu"l m"r3et incre"se in tec!productivit,%

1&&& #2 MRP ? MFC ("$es p;c; pro)it%

1991 #1 Per)ect Competition in t!e )"ctors m"r3et

2&&2 #1 Per)ect CompetitionMonopol, (monopol,p;c; PC )"ctors m"r3et%

2&&


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2&& #2 omesticorld @r"p! t"ri))s


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AP M"croeconomics Free Response Questions

Production-possibilities Curve

1999 #2 Production-possibilities Curve (!e"t "nd clot! comp"r"tive "dv"nt"$e%

2&&' #' Production-possibilities Curve ("bsolutecomp"r"tive "dv"nt"$e terms o)tr"de%

2&&* #' Production-possibilities Curve ("bsolutecomp"r"tive "dv"nt"$e terms o)

tr"de%

Circul"r Flo "nd @P

199< #2 Circul"r Flo (circul"r )loA)lo o) ependitures)lo o) e"rnin$s%

1999 #2 @P ()lo o) ependitures)lo o) e"rnin$s !"t is included in @P%

2&&< #' @P (!"t is "nd is not included%

Monet"r, Polic,

199' #2 Reserve Re=uirement (6-"ccount%

1990 #' Reserve Re=uirement (M+ simple mone, multiplier limit"tions%

2&&1 #' Reserve Re=uirement (M1 M2 m"imum lo"ns limit"tions%

2&& #' F. bu,s bonds 6 "ccount incre"se in t!e mone, suppl,

A$$re$"te +uppl, "nd A$$re$"te em"nd (Monet"r,Fisc"l8R%

19*9 #1 A+A (econom, less t!"n )ull emplo,ment )isc"lmonet"r, 8R%

199& #1 A+A (econom, is ide"l )isc"l monet"r, 8R%

199' #1 A+A (econom, is per)ect )isc"l messes it up monet"r, corrects it%

1990 #1 A+A (!i$! in)l"tion )isc"l monet"r, limit"tions o) t!ese policies%

199* #2 +ell Eonds (interest r"tes investment A P8 Q%

199* #1 A+A (econom, is per)ect )isc"l polic, messes it up monet"r, polic,

debt de)icit suppl,-side t" polic, 8R A+ PP curve%

2&&& #1 A+A (deep recession monet"r, )isc"l / lon$ run A+%

2&&& #' Mone, M"r3et @r"p! (interest r"tes components o) A AA+ P8 Q%

2&&1 #1 A+A (less t!"n )ull emplo,ment )isc"l mone, dem"nd interest r"tes

corpor"te t"es AA+ P8 Q%

2&&2 #1 A+A (econom, !"s !i$! unemplo,ment )isc"l monet"r, interest r"tes%

2&& #1 A+A st"te o) econom, F. )leible "$es "nd prices

2&&4 #1 A+A (econom, is per)ect $oes into recession F. policies re"l interest

/ntern"tion"l M"r3et A> .c!"n$e R"tes

1990 #2 .c!"n$e R"tes (en Fr"nc M"r3 G H M intern"tion"l v"lue o) G%

199* #' /ntern"tion"l v"lue o) t!e currenc, (c!"n$e in l"bor productivit,%

2&&& #2 .c!"n$e R"tes (dem"nd )or Frenc! $oods incre"se in interest r"te

intern"tion"l v"lue o) G%

2&&1 #2 .c!"n$e R"tes (intern"tion"l v"lue o) G H M%

2&&2 #' /ntern"tion"l 7"lue o) G (interest r"tes H M%


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2&&' #2 /n)l"tion (e))ects on )ied interest "ccount )ied interest lo"n !o )isc"l

"nd monet"r, polic, c"n correct in)l"tion "))ect o) in)l"tion on

nomin"l r"tes "))ect o) in)l"tion on intern"tion"l v"lue o) G%

2&& #2 8o"n"ble )unds "nd ec!"n$e m"r3et

2&&4 #2 8o"n"ble )unds de)icit spendin$ investment intern"tion"l v"lue o) G

2&&* #2 E"l"nce o) P",ments current vs; c"pit"l "ccount currenc, ec!"n$e

m"r3et%

A$$re$"te +uppl, "nd A$$re$"te em"nd (Monet"r,Fisc"l8R/ntern"tion"l%

1992 #2 A+A (incre"se in A monet"r, )isc"l intern"tion"l v"lue o) G H M%

199 #' /ncre"se Productivit, (A+ P Q H intern"tion"l v"lue o) G%

199< #' A+A (recession )isc"l monet"r, H M intern"tion"l v"lue o) G%

1999 #1 A+A (incre"se in rel"tive interest r"tes v"lue o) G H M / A A+

)isc"l monet"r,%

2&&' #1 A+A (severe recession )isc"l monet"r, v"lue o) G H M%

2&&0 #1 A+A (current st"te ener$, costs rise A+A intern"tion"l v"lue o) G%

2&&< #1 A+A (mone, m"r3et dem"nd A+A intern"tion"l v"lue o) G%

A$$re$"te +uppl, +!i)t

1991 #1 A+A (suppl, s!oc3 )isc"l monet"r, H M%

199 #1 A+A (st"$)l"tion )isc"l monet"r,%

199 #2 8on$ Run @rot! (s!ort-term interest r"tes "$$re$"te ependitures

@P%

1999 #' A+A (incre"se in investment A C"pit"l +toc3 8R A+ Q PP curve%

2&&2 #2 A+8on$-run e))ect (decre"se in l"bor p"rticip"tion incre"se in $ov; de)icit

decre"se in =u"ntit, o) inputs re=uired to produce

incre"se in =u"lit, o) educ"tion incre"se in s"vin$sr"te%

i))icult R Misc; Questions

199< #1 /nterest r"teMone, dem"nd sensitivit,

199' #' >omin"l "$es Rise F"ster t!"n 8"bor Productivit, (!"t !"ppens to

t!e $ener"l price level H intern"tion"l v"lue o) t!e G%

2&&4 #' P!illips curve (s!ort run "nd lon$ run%

2&&0 #2 8o"n"ble )unds m"r3et mone, m"r3et re"l interest nomin"l interest

2&&0 #' 5nemplo,ment n"tur"l r"te o) unemplo,ment p"rt-time emplo,ees "nd

unemplo,ment r"te P!illips curve;2&&< #2 Feder"l )unds r"te multiplier nomin"l interest r"te re"l interest r"te

2&&* #1 P!illips Curve recession spendin$ multiplier t" multiplier lo"n"ble

lo"n"ble )unds


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