Official 2011 AP Economics Thread

A lot harder than I thought it would be…</p>

That was so easy.
At most I missed 8 on MC and 4 on the FRQ…#3 FRQ was worded akward but i think i understood it.</p>

The micro FRQ killed me…</p>

So I just realized I accidently made something go the wrong way on one of the graphs for Macro and the answered the questions on one of the FRQ based on that . . . will this make it highly unlikely that I get a 5? I feel like I only missed about 5 MC.</p>

I thought the FRQ on the Micro was suuuuper easy.</p>

The Macro…uh, lets not talk about that. I didn’t really study the Micro thorough enough --praying for a 4 on that.</p>

This totally happened yesterday and as nothing to do with the test</p>

Okay so my best friend, Sarah convinced this guy Jon to loan her 1000USD and in return she would pay him 1020USD.</p>

I’m all like, “LOL YOU CRAZY” cause obviously Jon can just go and put it as CD’s and since the interest is like .3 he could totally get like, 1030USD instead. So Jon was all like “heck no, i’d be better off just putting it in as CDs!”</p>

Amirite?!?!</p>

True story, happened yesterday.</p>

Last free response for micro? Anyone have an idea??? part a and b.</p>

Yes but hypothetically Staller, why would government transfer payments increase/decrease disposable income? Wouldn’t the correct answer have been the money supply, since both taxes and transfer payments affect it?</p>

Lol yes, you are right.</p>

So, I have a trick question for all of you. Say consumers start spending less and the government takes no action, how would this affect nomial and real GDP in the long run? </p>

It wouldn’t affect them at all, correct?</p>

@ Konata, that was freaking hilarious dude, how creativeeee :)</p>

Transfer payments are things like social security and welfare. The more tranfer payments, the more the government is paying and subsidizing people, the more money people have to spend, the more disposable income, no? Taxes certainly don’t affect the money supply.</p>

With perfect price discrimination, a monopoly would produce at the output which marginal revenue = 0, right?</p>

^Yes I think that is correct. Marginal Revenue is zero.</p>

Thanks for confirming the last question, haha!</p>

Hypothetically, if a family has income of 20000USD, and they Spent 18000USD, while the mpc was .75, what would spending increase by if income was 24000USD?</p>

MPC measures the percentage spent on consumption of ADDITIONAL dollars. Marginal = adding one more. So if .75 of each incoming dollar is spent, and 4,000 extra dollars come in, 3,000 extra dollars will be spent.</p>

I messed up on the reserve ratio. How will that affect the rest of my answers on that last macro frq?</p>

Yes in price discrimination, the MR becomes the Demand
LOL
i can’t believe i guessed that correctly loll</p>

a lump sum tax would have no effect on reducing the dead weight loss created from a negative externality, correct?</p>

I said 3,000.</p>

24,000-20,000=4,000 x .75=3,000</p>

thes1tuation: right</p>

TenebrousNight: I’m in the same boat as you :(</p>

james11223: so… the hypothetical answer=10 units?</p>