<p><em>revive</em> <em>revive</em></p>
<p>I think, canned_dice, more people would like for you to post actual MC problems rather than just general ones. I think most of us enjoy practicing with the actual test format then open-ended questions like that. Though to be fair it was just asking for an expression so :x</p>
<p>The AP test will never be that straightforward though, even on the FRQ.</p>
<p>Do you know where I could find any MC problems? There aren’t much on the internet.</p>
<p>But can someone answer the CPI expression thing? Or is that something we don’t have to know for the AP? I don’t think I can trust my teacher.</p>
<p>Well you can just write your own MC, which would help you concrete subjects by trying to trick other people with specific wording and what the concept actually is.</p>
<p>And no I’m pretty sure you’re not going to have to know CPI’s calculations. GDP deflator, yes, but CPI, no. Just be sure you know the concept behind it and not just numbers…</p>
<h1>5Mi: 13. If I conclude that I should see more movies and go to fewer soccer games, the marginal utility of the last dollar spent on movies is ________ the marginal utility of the last dollar spent on soccer games.</h1>
<p>A) more than
B) less than
C) increasing more rapidly than
D) diminishing more rapidly than</p>
<p>A. You say that you want to continue to see more movies meaning that its provides a larger marginal utility than soccer</p>
<p>I"m taking both Micro and Macro as well. I’m so freakin scared about it, I feel like I don’t know ANYTHING. Probably because I’m not very interested in it so I havent been trying all year. I hope 1 month is enough to study…</p>
<p>What’s the answer to the one on Okun’s Law? We learned it in class for sure but I completely forgot.</p>
<p>And I have PR to review for both Macro/Micro and I think it’s pretty good. DId anyone else find PR really helpful? I hope it’ll be enough to help me get through this AP exam. AHHH i’m so nervous. I want to make 5s on both…but I think I’ll settle for 4s. A 5 at this point seems impossible (I mean, I’m just now starting to learn ALL of this stuff)</p>
<p>Same here, Smile614! I’d be very content with fours on the Economics exam. I don’t know if I can trust what I have learned in Econ, so I’m getting the 5 steps to a 5. I already had Econ for Dummies since the beginning of the year, but it seems like understanding all of that leaves much to be desired.</p>
<p>The answer to the Okun’s law one was D, I believe.</p>
<p>What explains the eventual upward slope of the MC curve?
a. Economics of scale
b. Diminishing marginal utility
c. Diseconomics of scale
d. Increasing labor productivity
e. Average total cost</p>
<p>Yeah, it would be helpful to get some AP MC problems to practice. My teacher hasn’t given us any real MC problems yet. We have only done 3? FR problems for macro. And 3 for Micro. Not 3 sets of problems but just three problems. I’m really hoping we’ll do more becuase I totally just flunked a monopoly quiz. I thought I knew everything but apparently not.</p>
<p>AHHHH!</p>
<p>I’m gonna be like the only person cramming the day before macro/micro trying to learn a whole years worth of info. </p>
<p>Umm is it C?
I have no idea. We havent really learned diseconomis of scale of economies of scale.</p>
<p>C is the best answer out of those, decrease in labor productivity and diminishing marginal returns are the result of diseconomies of scale thus leading to a higher MC.</p>
<p>^ OK, I see why it’s C. But can’t B also sort of explain the increase of MC? Or diminishing marginal utility has nothing to do with MC?</p>
<p>Marginal cost has nothing to do with diminishing marginal utility. Diminishing marginal utility explains why a demand curve must be downslopping, because it deals with utility (happiness) not the cost or per-unit production cost.</p>
<p>^Thanks for the explanation!!</p>
<p>I was kinda confused about B too. I should probably read up on diseconomies of scale though…</p>
<p>Does anyone have any MC to practice for Macro or Micro? Or a website with good review questions??</p>
<p>We haven’t recieved any MC to practice with except for the ones on our tests, which aren’t really AP exam questions, just questions that correspond with our textbook. So I’m not really sure if that’s going to be enough to prepare me for the MC…</p>
<p>Free response is a lot easier to prepare for because you get get them online but I’m worried about the MC part…because that’s the bigger part of your grade…</p>
<p>I have been using the prep books for studying and doing MC. Hopefully I can find some people to trade with for some Econ AP tests, but most people have all of the released exams.</p>
<p>does anyone know where I can get the released exams?</p>
<p>^I think you can get them online at the CB. You have to pay for them though. And the MC is only released every 4 years. </p>
<p>We’ve been practicing a lot of FR…but I looked at my PR prep book and it said FR is only worth 1/3 of your grade. Man, I really wished I had some MC to practice. </p>
<p>I’m hoping PR will do miracles. ANyone else using PR?</p>
<p>
</p>
<p>I think none of the options is correct. The answer is diminishing marginal returns</p>
<p>Economics/Diseconomies of scale is related to the LRAC curve, not the MC (supply) curve.</p>
<p>Oh i totally forgot about this thread… Anyways!</p>
<p>AP MACRO/MICRO AIM studying group will start tomorrow around 12 PM PST.</p>
<p>IM me to get started.</p>
<p>Okay here is a bombardment of multiple choice questions guys, both involving micro and macro.</p>
<p>I will also post some free response question, the FRQ answers will not be posted, instead it will be up to us to see if it is correct, I will keep updating the answers as they develop.</p>
<p>But MC questions will be given answers at the end.</p>
<p>I’ll start with a long free response question and a short one for MACRO.</p>
<p>****LONG FREE RESPONSE [MACRO]:</p>
<p>Suppose that the following conditions describe the current state of the U.S. economy.</p>
<p>*The unemployment rate is 5 percent.
*Inflation is 2 percent.
*Real GDP is growing at the rate of 3 percent.</p>
<p>A) First, assume that the federal government increases its spending and increases taxes to maintain a balanced budget. Using AS and AD analysis, explain the short-run effects of these policies on each of the following:</p>
<p>i) output and employment
ii) the price level
iii) interest rate</p>
<p>B) Now assume instead that the Federal Reserve buys bonds on the open market. Analyze the impact of this action on each of the following:</p>
<p>i) interest rates
ii) output and employment
iii) the price level</p>
<p>C) Using a graph, analyze the combined effect of the two policy actions described above each of the following:</p>
<p>i) output and employment
ii) the price level
iii) interest rate</p>
<p>****** the the graphs please graph them on your own piece of paper and the explain your analysis, without the graphs drawn the answers will be confusing**************</p>
<p>***SHORT FREE RESPONSE [MACRO]</p>
<p>Why is there a conflict between the Fed’s attempts to control both money supply and the interest rate? What is the implication of the Fed’s attempt to control the money supply?</p>
<p>[MACRO] MULTIPLE CHOICE</p>
<h1>6 Which of the following monetary and fiscal policy combinations would definitely cause a decrease in aggregate demand in the short run?</h1>
<pre><code> Discount Rate Government Spending Open Market Operations
</code></pre>
<p>(A) DEC DEC BUY
(B) DEC INC BUY
(C) DEC INC SELL
(D) INC DEC SELL
(E) INC DEC BUY</p>
<h1>7 Which of the following monetary and fiscal policy combinations would definitely cause an increase in aggregate demand?</h1>
<pre><code> Discount Rate Taxes Government Spending
</code></pre>
<p>(A) DEC DEC DEC
(B) DEC DEC INC
(C) INC DEC INC
(D) INC INC DEC
(E) INC DEC DEC</p>
<h1>8 To counter the crowding out effect on interest caused by the government’s deficit spending, the Federal Reserve can</h1>
<p>(A) cut taxes
(B) increase tax rates
(C) increase the discount rate
(D) increase the reserve requirement
(E) buy bonds through open market operations</p>
<h1>9 If Congress and the Federal Reserve both wished to encourage growth of productive capacity in an economy already close to full employment, it would be most appropriate to</h1>
<p>(A) increase interest rates by buying bonds on the open market
(B) use a tight money policy to decrease government spending
(C) reduce taxes on consumption, increase income taxes and increase government transfers payment.
(D) reduce interest rates by engaging in open-market operations and raise taxes on personal income.
(E) increase capital gains taxes and decrease the money supply.</p>
<h1>10 In the short run, combining an expansionary fiscal policy with a tight money policy is most likely to cause</h1>
<p>(A) real GDP to increase
(B) real GDP to decrease
(C) interest rates to fall
(D) interest rates to rise
(E) federal budget deficit to decrease</p>
<p>[MICRO] MULTIPLE CHOICE</p>
<h1>11 If regulation of a natural monopoly occurs where marginal cost intersects the demand curve, which of the following is correct?</h1>
<p>(A) The firm would be taxed
(B) the firm would realize profit
(C) the firm would be subsidized
(D) the price of the firm would be equal to marginal revenue
(E) the firm would produce less than an unregulated natural monopoly</p>
<h1>12 Which of the following is a correct statement:</h1>
<p>(A) average total cost equals MC plus average fixed cost
(B) average total cost equals MC plus average variable cost
(C) average total costs equals average fixed cost plus average variable cost
(D) total fixed costs vary with output
(E) total fixed costs equal total variable costs at zero output</p>
<h1>13 Which of the following statements is correct?</h1>
<p>(A) Economic Profits = Accounting Profits
(B) Economic Costs = Explicit Costs plus Implicit Costs
(C) Economic Costs = explicit costs minus implicit costs
(D) opportunity costs = economic profits
(E) accounting costs = implicit cost</p>
<p>Answers:</p>
<h1>6 D</h1>
<h1>7 B</h1>
<h1>8 E</h1>
<h1>9 D</h1>
<h1>10 D</h1>
<h1>11 C</h1>
<h1>12 C</h1>
<h1>13 B</h1>