AP Microeconomics 🤑
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Multiple Choice Practice for Imperfect Competition
Welcome to Unit 4 AP Macroeconomics Multiple Choice Questions! Grab some paper and a pencil 📄 to record your answers as you go. You can see how you did on the Unit 4 Practice Questions Answers and Review sheet once you're done. Don't worry, we have tons of resources available if you get stumped 😕 on a question. And if solo study is not your thing, join a group in Hours!
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Facts about the test: The AP Microeconomics exam has 70 multiple choice questions and you will be given 1 hour to complete the section. That means it should take you around 8 minutes to complete 10 questions.
*The following questions were not written by College Board and, although they cover information outlined in the AP Microeconomics Course and Exam Description, the formatting on the exam may be different.
1. The four market structures include perfect competition, monopoly, oligopoly, and . . .
A. comparative advantage
B. monopolistic competition
C. oligopoly competition
D. socialism
2. A barrier to entry to an imperfect competition market includes:
A. terms of trade
B. high start-up costs
C. demand for goods
D. religious persecution
3. Imperfectly competitive firms are price makers, so their demand curves are:
A. constantly shifting to the left
B. downward sloping
C. upward sloping
D. nonexistent
4. A monopoly will only produce in this range of the demand curve:
A. elastic
B. inelastic
C. uninsured
D. restricted
5. A monopoly should produce where MR equals this on the firm's cost curve:
A. MC
B. MR
C. ATC
D. demand
6. Producing at the lowest possible cost is called:
A. allocative efficiency
B. economic efficiency
C. productive efficiency
D. zero efficiency
7. When one firm can produce the socially optimal quantity at the lowest cost due to economies of scale:
A. free trade
B. natural monopoly
C. perfect competition
D. socialism
8. In analyzing a monopoly from the point of view of economic efficiency, a monopoly . . .
A. produces nothing
B. produces too little and charges too low a price
C. produces too much
D. produces to little and charges too high a price
9. Producing at the amount most desired by society is called:
A. allocative efficiency
B. economic efficiency
C. productive efficiency
D. zero efficiency
10. The practice of selling the same products to different buyers at different prices is known as
A. average total cost
B. marginal utility
C. unfair competition
D. price discrimination
11. Since a price discriminating monopoly charges each person differently, the marginal revenue will equal the:
A. ATC
B. demand
C. MC
D. TC
12. In monopolistic competition there are price makers, so this would be less than demand:
A. ATC
B. supply
C. MC
D. MR
13. These occur when a few large firms control an industry:
A. oligopolies
B. monopolies
C. no trade zones
D. perfect competitions
14. Oligopolies have a tendency to engage in this to cooperate with rivals, rig a situation, and maximize positive outcomes.
A. collusion
B. demolition
C. price discrimination
D. price gouging
15. A group of producers that create an agreement to fix prices high is called:
A. ATC
B. cartel
C. demand determinants
D. price discrimination
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Browse Study Guides By Unit
💸Unit 1 – Basic Economic Concepts
📈Unit 2 – Supply & Demand
🏋🏼♀️Unit 3 – Production, Cost, & the Perfect Competition Model
⛹🏼♀️Unit 4 – Imperfect Competition
💰Unit 5 – Factor Markets
🏛Unit 6 – Market Failure & the Role of Government
📝Exam Skills: FRQ/MCQ
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