... (the opportunity cost). The multiple-choice section consists of 60 questions, each with 5 answer choices. Nirali spends 3 hours studying macro and 2 studying history, calculate the gain she has the second hour studying history. So 1 more rabbit means that I have a cost. And if I start with this original equation and just divide both sides by eight, I would solve for the energy for a belt. The combination of scarcity and trade-offs brings us to opportunity costs. 2018 AP Microeconomics Exam (A.) And so the opportunity cost … If you have any questions, ask them in the video comments. The AP Microeconomics Exam consists of two sections: (1) Multiple-Choice Questions (MCQs) and (2) Free-Response Questions (FRQs). That is because every choice has a cost. And so that would be four over eight is 1/2 of the energy to make a car is equal to the energy to make a belt. AP Microeconomics Unit 1.1 Study Guide Scarcity, Explore factors of production, Opportunity costs & trade off, supply & demand, and more! So my opportunity cost of a car is two belts. form the basis for free-response questions about output and pricing decisions that appear on nearly every AP microeconomics exam .. Economic Costs Resources are scarce and have alternative uses, so costs are incurred when a resource is used for one product rather than another. Opportunity Cost, Marginal Cost, Marginal Benefit Question/Rubric: 2014 #1: Answer - One point is earned for stating that the demand is inelastic because total revenue increases as price increases from $16 to $18, or because the price elasticity of demand within the price range is less than 1, or because marginal revenue is negative. Click on the question, try it out, then watch the review video to walk you through it! So let me write this down. You have 70 minutes for the multiple-choice section which gives you a little over a minute per question. Economic costs represent the opportunity cost of using a AP Microeconomics 2017 Free-Response Questions Author: ETS Subject: Free-Response Questions from the 2017 AP Microeconomics Exam Keywords; Microeconomics; Free-Response Questions; 2017; exam resources; exam information; teaching resources; … That cost is called an opportunity cost. Study and earn a 5 on the AP Economics Exams! MICROeconomics-Study of small economic units such as individuals, firms, and industries (competitive markets, labor markets, personal decision making, etc.) So I have to give up, on average, 40 berries. AP Microeconomics FRQ Practice. After three hours, the additional benefit from staying an additional half-hour would likely be less than the additional cost. First, we should recognize that the Expected Score is the expected Output (grade) gained by studying a certain number of hours. There is no such thing as a free lunch. In this example, my opportunity costs are what I give up in order to produce more pizzas or more hamburgers. And the technical term for what I've just described is the opportunity cost of going after 1 more rabbit is giving up 40 berries. ... Below are some of my favorite Free Response Questions from past AP Macroeconomics Exams. Opportunity costs are key to understanding both AP® Microeconomics and AP® Macroeconomics, and the production possibilities curve lets us clearly visualize them. Find out what opportunity costs are and how to calculate them to get you ready for your next Microeconomics or Macroeconomics exam. The opportunity cost of 1 more rabbit-- …