Practice Questions
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Which of the following best describes the role of fiscal policy in macroeconomics?
Fiscal policy is about how the government decides to spend money and collect taxes. Other options are incorrect because Some might think fiscal policy...
In the context of macroeconomics, how does an expansionary monetary policy affect interest rates and aggregate demand?
Expansionary monetary policy means the government makes more money available. Other options are incorrect because Some might think that more money lea...
Which of the following economic indicators is most commonly used to assess the overall health of an economy and can be used to predict future economic performance in the context of AP Economics long response questions?
GDP measures the total value of all goods and services produced in a country. Other options are incorrect because Some might think unemployment shows ...
How do changes in monetary policy influence key economic indicators such as inflation and unemployment in a macroeconomic context?
Monetary policy affects how much money is available in the economy. Other options are incorrect because Some might think that changing rules for busin...
How might Keynesian economic theories justify government intervention during a recession through fiscal policy measures?
Keynesian theory says that during a recession, people spend less. Other options are incorrect because Some think tax cuts will help people spend more;...
Which economic theory primarily focuses on the role of government intervention in the economy to achieve stability and growth?
Keynesian Economics believes that the government should step in to help the economy. Other options are incorrect because Classical Economics thinks th...
In the context of AP Economics, what is the primary purpose of long response questions?
Long response questions check how well you understand tough economic ideas. Other options are incorrect because Some might think these questions only ...
What is the primary purpose of long response questions in AP Economics?
Long response questions help teachers see how well students can think deeply. Other options are incorrect because Some might think these questions are...
In analyzing the market for potatoes in a perfectly competitive industry, which of the following sequences correctly outlines the steps a student should take to address a long response question involving a price floor?
Starting with a definition helps you understand what a price floor is. Other options are incorrect because This option starts with market equilibrium,...
Market equilibrium in a perfectly competitive industry is to the equilibrium price as the effects of a price floor is to what?
A price floor sets a minimum price. Other options are incorrect because Some might think a price floor helps consumers by lowering prices; People migh...
In a perfectly competitive market for potatoes, a sudden increase in consumer preference for organic potatoes leads to a rise in demand. How would this scenario affect the market equilibrium, and what could be the potential consequences if the government decides to impose a price floor on organic potatoes?
When more people want organic potatoes, the demand goes up. Other options are incorrect because This answer suggests that prices will go down, which i...
In a perfectly competitive market for potatoes, what is the likely outcome if a price floor is set above the equilibrium price?
When a price floor is set above the equilibrium price, sellers can charge more than what buyers are willing to pay. Other options are incorrect becaus...
In a perfectly competitive market, if a price floor is set above the equilibrium price, it will likely lead to a surplus of goods because the quantity supplied will be _____ the quantity demanded.
When a price floor is above the equilibrium price, sellers make more goods than buyers want. Other options are incorrect because Some might think that...
An AP Microeconomics student is given a scenario involving the potato market where a price floor has been implemented. Which of the following categories best describes the student's ability to analyze this situation in a long response question format?
Understanding how a price floor affects supply and demand is key. Other options are incorrect because Simply memorizing terms does not help in analysi...
Which of the following statements accurately describe the purpose and characteristics of long response questions in AP Microeconomics? Select all that apply.
Other options are incorrect because Some might think these questions only need graphs; It's a common mistake to believe these questions only check mem...
In a perfectly competitive market, how does a price floor affect market equilibrium?
A price floor sets a minimum price above the market equilibrium. Other options are incorrect because Some might think a price floor has no impact; Thi...
If a price floor is set above the market equilibrium price in the potato market, what is the most likely underlying cause for the resulting surplus of potatoes?
When the government sets a price floor above the market price, potatoes cost more. Other options are incorrect because This answer suggests that consu...
Master Long Response Questions in AP Economics
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