Title Practice - Unit1 FRQ QB.pdf ✅

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. The data provided below describe an ice-cream store’s daily production possibilities for milkshakes and sundaes. Milkshakes 0 20 40 60 80 100 120 Sundaes 210 200 180 150 110 60 0 (a) Draw a correctly labeled graph of the store’s production possibilities curve with milkshakes on the horizontal axis and sundaes on the vertical axis and label the endpoints using the numbers provided above. (b) Is the opportunity cost of producing milkshakes increasing, decreasing, or constant? Explain using numbers in the table. (c) The store is currently producing 80 milkshakes and 110 sundaes. Calculate the opportunity cost of increasing milkshake production from 80 to 100 milkshakes. Show your work. (d) Would it be efficient for the store to produce 80 milkshakes and 150 sundaes? Explain using numbers in the table. (e) Suppose the ice-cream store purchases a new machine that increases the output of milkshakes and sundaes. Show the effect of the change on the store’s on your graph in part (a). 1. Respond to all parts of the question. AP MICROECONOMICS Test Booklet All About U1 FRQ AP Microeconomics Page 1 of 6
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Assume both Atlantis and Zanadu produce helmets and baseballs. Using equal amounts of resources, Atlantis can produce 100 helmets or 200 baseballs, whereas Zanadu can produce 100 helmets or 400 baseballs. (a) Assume both Atlantis and Zanadu experience constant opportunity costs in producing helmets and baseballs. Draw a correctly labeled graph illustrating the production possibilities curves for Atlantis and Zanadu, showing helmets on the horizontal axis and baseballs on the vertical axis. Plot the numerical values provided above on your graph. (b) Calculate the opportunity cost of one helmet for Atlantis. Show your work. (c) Which country has an absolute advantage in the production of baseballs? (d) Which country has a comparative advantage in the production of baseballs? Explain. (e) If Atlantis and Zanadu specialize based on comparative advantage and trade, would they be able to gain from trade if the terms of trade are 1 helmet for 3 baseballs? Explain. 2. Respond to all parts of the question. Test Booklet All About U1 FRQ Page 2 of 6 AP Microeconomics
Assume that Countries A and B have equal amounts of resources and identical technologies. Country A can produce 100 bushels of wheat or 100 yards of cloth or any combination, as shown by the line XZ in the figure above. Country B can produce 100 bushels of wheat or 300 yards of cloth or any combination, as shown by the line XY in the figure above. a. Which country has an absolute advantage in the production of wheat and which has an absolute advantage in the production of cloth? Explain how you determined your answer. b. Which country has a comparative advantage in the production of wheat and which has a comparative advantage in the production of cloth? Explain how you determined your answer. c. With specialization and trade, which country will import wheat? Explain why. d. Assume that the two countries trade, and that one bushel of wheat is exchanged for two yards of cloth. Explain why the country that imports wheat will gain from trade. 3. Respond to all parts of the question. Test Booklet All About U1 FRQ AP Microeconomics Page 3 of 6
Nirali is a student at the University of Ainsley. She has 5 hours to study for two exams today. The tables below show Nirali’s expected scores given the amount of time she studies for each exam. a. Nirali spends 3 hours studying microeconomics and 2 hours studying history. Calculate her gain from the second hour spent studying history. b. Calculate Nirali’s opportunity cost of the second hour spent studying history. c. Assume Nirali increases the time she allocates to studying history. What happens to the opportunity cost of studying history? Explain. d. Assume that Nirali has a goal of maximizing the sum of her test scores (the score on microeconomics plus the score on history). How many hours should she study for each exam? e. Nirali learns that her tennis practice has been canceled, freeing up an additional hour for studying. Given your answer to part (d), will Nirali allocate the additional hour to studying microeconomics or to studying history to maximize the sum of her test scores? Explain using marginal analysis. 4. Respond to all parts of the question. Test Booklet All About U1 FRQ Page 4 of 6 AP Microeconomics