The student notebook / Unit quizzes

Learn it.
Then put it to the test.

One ten-question quiz for every unit of AP Micro and AP Macro. Apply a concept, check a calculation, and use the explanations to understand your mistakes.

12 unit quizzes120 original questionsReview the vocabulary first ↗

12 unit quizzes

Choose a unit below to begin.
AP Micro / Unit 1Basic Economic Concepts10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. A student gives up a $40 shift to attend a free lecture. What is the opportunity cost, assuming that shift is the next-best alternative?
2. Country A gives up 2 shirts for a hat; B gives up 4 shirts for a hat. Who has comparative advantage in hats?
3. Which point is productively efficient in a PPC model?
4. The next unit of an activity adds $12 of benefit and $8 of cost. What should a decision-maker do?
5. A consumer buys goods X and Y and has MUx/Px greater than MUy/Py. In the standard divisible-goods model, how can utility improve?
6. A student has already paid a nonrefundable $15 fee. Attending now adds $8 of benefit and $5 of additional cost. What should determine the decision?
7. An outward-bowed PPC becomes steeper as more of good X is produced on the horizontal axis. What does this illustrate?
8. A producer’s opportunity cost of one bike is 3 scooters; another’s is 5 scooters. Which trade ratio can benefit both when the first exports bikes?
9. A choice is productively efficient but not allocatively efficient. What does that mean?
10. A consumer’s extra satisfaction falls with each additional slice of pizza. Which principle is illustrated?

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AP Micro / Unit 2Supply and Demand10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. Consumer income rises and a good is normal. With supply unchanged, what happens?
2. A binding price ceiling is set below equilibrium. What results in the basic model?
3. Demand is price elastic. A seller raises price along an unchanged demand curve. What happens to total revenue?
4. Demand is less elastic than supply. Who bears more of a per-unit tax?
5. In a competitive small-country import market, a tariff raises domestic price while world price is unchanged. What happens to imports?
6. The price of tea rises. Tea and coffee are substitutes, and coffee supply is unchanged. What happens in the coffee market?
7. A good’s own price rises by 4% and quantity supplied rises by 12%. Using those stated percentage changes, what is supply elasticity?
8. A binding price floor is set above a competitive market’s equilibrium. What does the basic model predict?
9. Income rises and demand for a particular good falls. How is that good classified in this situation?
10. A consumer will pay at most $30 for a unit and buys it for $22. What is consumer surplus on that unit?

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AP Micro / Unit 3Production, Cost, and the Perfect Competition Model10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. A competitive firm has price $10, ATC $12, and AVC $7 at its profit-maximizing positive output. In the short run, what should it do?
2. Total cost rises from $100 at 10 units to $109 at 11 units. What is the marginal cost of the eleventh unit?
3. For an individual perfectly competitive firm, which equality holds?
4. With fixed capital, additional workers eventually add less extra output. What is this called?
5. With free entry and identical cost conditions, positive economic profit attracts new competitive firms. What is the expected long-run result?
6. A firm sells 100 units for $15 each and has ATC of $12 at that output. What is its economic profit?
7. A competitive firm’s market price is below minimum AVC. What should it do in the short run?
8. A firm’s fixed cost rises while its variable cost schedule is unchanged. Which curve is directly unchanged?
9. Long-run ATC falls as a firm increases its scale. What is this called?
10. At a positive output, MC is below ATC. What happens to ATC when output increases slightly?

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AP Micro / Unit 4Imperfect Competition10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. A single-price monopolist chooses output where MR equals MC. How does it choose price?
2. Which condition defines a dominant strategy?
3. What is required for a Nash equilibrium?
4. Which feature distinguishes monopolistic competition from perfect competition?
5. Relative to an unregulated single-price monopoly, charging each buyer their maximum willingness to pay can do what in the ideal perfect-discrimination model?
6. Why is marginal revenue below price for a single-price monopolist with downward-sloping demand?
7. What cost condition most directly supports a natural monopoly?
8. In long-run monopolistic competition with free entry, what combination is typical?
9. Two rivals could earn higher combined profits by cooperating, but each has an incentive to undercut the other. What does this illustrate?
10. What makes price discrimination easier to sustain?

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AP Micro / Unit 5Factor Markets10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. An extra worker adds 3 units of output and marginal revenue is $8 per unit. What is the worker’s MRP?
2. A competitive employer faces a $20 wage. The next worker’s MRP is $25. Assuming no other costs, should the firm hire that worker?
3. Why is labor demand called derived demand?
4. A nondiscriminating monopsonist must raise the wage for existing workers to hire more labor. How does MFC compare with the wage?
5. Holding product price and other conditions constant, training increases workers’ marginal product. What happens to labor demand?
6. More qualified workers enter a competitive labor market while labor demand is unchanged. What is the basic prediction?
7. The price of a firm’s output falls while worker productivity is unchanged. What is the likely effect on labor demand?
8. A nondiscriminating monopsonist chooses labor where MRP equals MFC. Where is the wage read?
9. A competitive employer faces a $24 wage. The next worker adds $20 of revenue and no other costs change. Should that worker be hired?
10. Demand for new buildings increases. Holding other conditions constant, what can happen to demand for construction workers?

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AP Micro / Unit 6Market Failure and the Role of Government10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. A factory creates external pollution costs. Without correction, how does its market output usually compare with efficient output?
2. Which pair describes a public good?
3. A rival, nonexcludable fish stock is best classified as what?
4. What is the efficient output condition when externalities are included?
5. A Lorenz curve moves closer to the perfect-equality line without crossing the old curve. What does this suggest?
6. An activity generates benefits for third parties that buyers do not consider. Without correction, how does market quantity usually compare with efficient quantity?
7. A good is nonexcludable. Why can private provision be difficult?
8. For a negative production externality in the standard competitive model, what corrective tax achieves the efficient quantity if accurately calibrated?
9. Two people can watch the same broadcast without reducing the signal available to either. Which property does this illustrate?
10. What does a Gini coefficient of zero represent in the standard income-distribution measure?

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AP Macro / Unit 1Basic Economic Concepts10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. A new technology raises the maximum output possible with existing resources. What happens to the PPC?
2. Which producer has comparative advantage?
3. An economy moves from an interior PPC point to a point on its unchanged frontier. What does this show?
4. The price of a good falls with its demand curve unchanged. What happens?
5. A producer can make either 10 tables or 20 chairs with the same resources. Assuming constant tradeoffs, what is the opportunity cost of one table?
6. A firm gains more idle workers and machines to use during an expansion, but the economy’s total resources and technology are unchanged. Which PPC description fits better use of that idle capacity?
7. An economy allocates more resources to capital goods today, giving up some consumer goods. What is a possible long-run benefit?
8. Two producers have different opportunity costs. What can specialization and trade allow?
9. A lower input price increases supply of a good, with demand unchanged. What happens in the basic competitive model?
10. Which is an example of a capital good in macroeconomic production analysis?

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AP Macro / Unit 2Economic Indicators and the Business Cycle10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. Nominal GDP is $600 and real GDP is $500. What is the GDP deflator?
2. There are 90 employed people and 10 actively seeking unemployed people. What is the unemployment rate?
3. A price index rises from 200 to 210. What is inflation for that period?
4. A worker loses a job because the skills required in their industry have changed. What type of unemployment is most directly illustrated?
5. Which transaction directly counts as current U.S. GDP?
6. Real GDP is unchanged while the price level rises. What can happen to nominal GDP?
7. A person wants a job but has stopped searching and is not actively seeking work. In the standard labor-force definition, how is that person classified?
8. There are 200 working-age people and 120 people in the labor force. What is the labor force participation rate?
9. Nominal wages rise 2% while consumer prices rise 5%. What is the approximate real wage change?
10. Which unemployment can exist even when the economy produces at potential output?

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AP Macro / Unit 3National Income and Price Determination10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. Government purchases increase while other AD determinants stay unchanged. What happens initially?
2. MPC is 0.8. What is the simple spending multiplier, assuming fixed prices and no extra leakages?
3. The cost of a widely used input increases with AD unchanged. In the short run, what happens?
4. Real GDP is below potential output. What is this called?
5. Which is an automatic stabilizer?
6. MPC is 0.75. In the simple fixed-price model, what is the tax multiplier?
7. MPC is 0.8 and government purchases rise by $20. In the simple fixed-price model with no extra leakages, what is the total equilibrium output change?
8. With real output above potential in the short run, which discretionary fiscal change can reduce aggregate demand?
9. What does vertical LRAS represent in the basic model?
10. With unchanged SRAS, private investment falls. What is the short-run AD–AS prediction?

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AP Macro / Unit 4Financial Sector10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. Nominal interest is 7% and expected inflation is 3%. What is the approximate expected real interest rate?
2. An existing bond pays fixed future amounts. If its market price rises, what happens to its yield, other things equal?
3. In a simple loanable funds model, household saving rises with demand unchanged. What happens?
4. In an ample-reserves system, which is a direct way to help raise overnight rates?
5. Assume a 20% required reserve ratio, no currency withdrawals, no excess reserves, and full lending. What is the simple maximum deposit multiplier?
6. A shop quotes all its prices in dollars. Which function of money is directly illustrated?
7. In the standard money-market model with fixed money supply, real income rises and money demand increases. What happens to the nominal interest rate?
8. A bank makes a new loan by crediting the borrower’s transaction deposit. What happens initially to the bank’s balance sheet?
9. In a simple loanable funds model, firms demand more funds for investment while saving supply is unchanged. What happens?
10. Other things equal, an expansionary monetary action reduces borrowing rates and encourages investment. What happens to aggregate demand?

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AP Macro / Unit 5Long-Run Consequences of Stabilization Policies10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. In the basic long-run Phillips-curve model, what happens if policy tries to keep unemployment permanently below its natural rate?
2. Government borrowing rises in a closed-economy loanable funds model with saving supply unchanged. What is the crowding-out prediction?
3. In MV = PY, money rises 10% while velocity and real output stay constant. What is the predicted price-level change?
4. Which change most directly increases long-run productive capacity?
5. What is the difference between deficit and debt?
6. Inflation expectations rise while the natural rate and supply conditions are otherwise unchanged. What happens to the short-run Phillips curve?
7. In MV = PY, nominal GDP is $1,000 and the money stock is $250. What is velocity?
8. A government runs a $30 deficit this year and a $20 deficit next year. Ignoring other debt changes, how much do those deficits add to outstanding debt?
9. What is labor productivity?
10. In the basic long-run self-adjustment model, output is below potential and no new demand shock occurs. What wage adjustment helps restore potential output?

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AP Macro / Unit 6Open Economy—International Trade and Finance10 questions · Open quiz

Answer all ten questions, then check your work. Unless a question says otherwise, use the standard introductory model and hold other factors constant.

1. The exchange quote changes from $1 = €0.80 to $1 = €0.90. What happened to the dollar against the euro?
2. Other things equal, domestic real interest rates rise relative to foreign rates and investors seek those returns. What is the likely currency-market effect?
3. A foreign investor buys a newly issued domestic corporate bond. Which account records the asset transaction?
4. Exports are $200 and imports are $240. What are net exports?
5. A currency appreciates in a floating-rate model. Other things equal, what is the usual directional effect on exports and imports as quantities adjust?
6. A domestic resident buys a foreign-produced final service. Which current-account component records that purchase?
7. One euro costs $1.10 and later costs $1.25. What happened to the euro against the dollar?
8. A central bank wants to support its domestic currency at a fixed exchange-rate target. Which intervention can help?
9. Domestic consumers increase purchases of foreign goods in a floating-rate model. Other things equal, what can happen to the supply of domestic currency in foreign exchange?
10. The current account includes trade, primary income, and current transfers. Does a trade deficit necessarily equal the whole current-account deficit?

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