Free AP Microeconomics Practice Test 2026 Study Guide [PDF]

Last Updated on June 10, 2026

Free AP Microeconomics (Micro) Practice Test 2026 Study Guide [PDF]. There are Multiple-Choice Questions and long and short Questions with Answers. You can download the official old exam test in printable PDF format.

Now that you have all the information and strategies for the exams in AP Economics, be sure to use them whenever you do the practice exercises at the end of each chapter, the practice exams in the book, and, of course, when you take the actual tests. Don’t forget to review the many helpful Microeconomics terms available online to help with your studying.

Table of Contents

AP Microeconomics Practice Test 2026

Use our free sample practice to identify your strengths and weaknesses by taking AP Microeconomics pretests. Using the answer keys, count the number of multiple-choice questions you answered correctly and how many you missed. Don’t worry about the explanations for now, and don’t worry about why you missed questions. We’ll get to that soon.

1) If the supply of good X decreases and this leads to an increase in both the price and quantity for good Y, which of the following is true?

Good X is independent of good Y.

Good Y is an inferior good.

Good Y is a normal good.

Good Y is a complement of good X.

Good Y is a substitute for good X.

2) Use the game theory matrix here for questions.

In a small town, there are only two shoe sellers, Tommy’s Tennies and Kevin’s Kicks. They are both trying to decide whether to price high or low. The first number in each box refers to the daily profit for Tommy’s Tennies, and the second number refers to Kevin’s daily profit. Based on the numbers in the game theory matrix, which of the following is true?

Pricing low is a dominant strategy for Kevin’s Kicks.

Pricing high is a dominant strategy for Tommy’s Tennies.

Pricing high is a dominant strategy for Kevin’s Kicks.

Pricing low is a dominant strategy for Tommy’s Tennies.

Neither firm has a dominant strategy.

3) If a 10% increase in the price of a good leads to a 5% decrease in the quantity demanded of that good, demand is

relatively inelastic.

perfectly elastic.

relatively elastic.

unit elastic.

perfectly inelastic

According to this labor market graph, what is the quantity and wage paid for both a monopsony and a perfectly competitive labor market?

PCM = Perfectly Competitive Market

PCM Q2, $20 | Monopsony Q1, $15

PCM Q1, $15 | Monopsony Q1, $20

PCM Q2, $12 | Monopsony Q1, $20

PCM Q1, $20 | Monopsony Q1, $12

PCM Q2, $12 | Monopsony Q1, $10

5) Which of the following is the best example of a pure public good?

The U.S. Postal Service

Internet service

Garbage pick-up services

National defense

A publicly funded sports stadium

Assume the monopoly in the graph is producing at the point where it maximizes total revenue. Choose the correct combinations of price, quantity, and deadweight loss.

(D)

(B)

(C)

(A)

(E)

7) Which of the following correctly describes monopolistically competitive firms in long-run equilibrium? (D = demand, MR = marginal revenue, MC = marginal cost, ATC = average total cost.)

MR = MC, P < ATC, D < MR

MR = MC, P > ATC, D > MR

MR < MC, P = ATC, D > MR

MR > MC, P = ATC, D = MR

MR = MC, P = ATC, D > MR

8) Assume a friend offers to give you a “free” ticket to a local professional baseball team’s game that night. You decide to attend the game. The game takes five hours and costs you $15 for transportation. If you had not attended the game, you would have worked 5 hours at your part-time job for $8 an hour. What is the opportunity cost to you of attending the game?

$23

$40

$55

$65

What is the total variable cost of producing the 4th unit of output?

12.5

10) This graph best depicts which of the following concepts?

The law of increasing opportunity cost

Economies of scale

Absolute advantage

The law of diminishing marginal returns in production

The law of diminishing marginal utility in consumption

11) This table shows the total product for a perfectly competitive firm. If the product sells for $10, what is the marginal revenue product for the 4th worker hired?

$40

$10

$54

$27

$100

12) Jacob was a corporate lawyer, who quit his job to open a yoga studio. His income as a lawyer was $100,000, and he earned $60,000 as a yoga studio entrepreneur. He also took $10,000 of his savings out of his bank savings account to invest in his business, where he was earning 10% interest. What is Jacob’s economic profit from his yoga studio?

$40,000

-$41,000

$60,000

-$40,000

$70,000

13) Which of the following is true for monopolistically competitive firms in long-run equilibrium?

There are positive economic profits

Their demand curves are equal to the marginal revenue curves.

They sell similar but differentiated products.

They are price takers.

There are high barriers for firms to enter the market.

14) A worker’s marginal revenue product is best described as

the change to a firm’s profit when employing an additional worker

the total amount of a firm’s labor costs.

the change in resource cost divided by total revenue.

the change to a firm’s revenue when employing an additional worker

the total revenue a firm makes when selling a product.

15) If a company has an average total cost of $100 and a marginal cost of $90 at the 4th unit of output, then which of the following must be true?

The average variable cost of producing the 4th unit is more than $100.

The average total cost of producing the 3rd unit is more than $100

The average total cost of producing the 3rd unit is less than $100

The marginal cost curve has intersected the average total cost curve before the 4th unit.

The average fixed cost curve is increasing as production moves from 3 to 4 units

16)

According to the law of comparative advantage, the U.S. should specialize production in ________ and Germany should specialize production in _________.

oranges; oranges

oranges; peanuts

peanuts; neither good

peanuts; oranges

oranges; neither good

17)

Which of the following is true based on this graph, where lines A, B, and C each represent a country?

Countries A, B, and C all have an equal amount of income inequality

Country B has more income inequality than A or C.

Country A has more income inequality than B or C.

Country C has more income inequality than A or B.

Country A has income inequality but less than B and C.

18) Which of the following would NOT be considered a characteristic of a market or capitalistic economy but that of a command or communist economy?

Competition among firms

Centralized decision making

Protection of private property

The price system to allocate resources

Negative externalities

19) Use the following graph for question

(B)

(E)

(C)

(A)

(D)

20) Assume the monopoly in the graph is producing at the profit- maximizing level of output. What is the area of economic profit?

P4, G, B, P2

P2, E, C, B

0, P5, C, Q1

P1, P5, C, A

P2, P5, C, B

21) In a small town there are only two shoe sellers, Tommy’s Tennies and Kevin’s Kicks. They are both trying to decide whether to price high or low and know all the information in the payoff matrix. The first number in each box refers to the daily profit for Tommy’s Tennies, and the second number refers to Kevin’s daily profit. Based on the numbers in the game theory matrix, what is the Nash equilibrium?

There is no Nash equilibrium

Tommy’s Tennies - High | Kevin’s Kicks - High

Tommy’s Tennies - Low | Kevin’s Kicks - High

Tommy’s Tennies - High | Kevin’s Kicks - Low

Tommy’s Tennies - Low | Kevin’s Kicks - Low

22) Why do most governments in market economies enforce antitrust laws?

(B) To prevent too much competition in an industry

(D) To ensure oligopolies reach a Nash equilibrium

(A) To ensure oligopolies don’t have monopoly power

(E) To prevent price ceilings from being imposed on a market

23)

Which of the following is true based on the graph?

Producers should be given a per-unit subsidy to allow for production at the socially optimal output level.

At the socially optimal quantity, marginal private benefit is greater than the marginal social benefit.

There are no externalities present at the free-market quantity.

The marginal private benefit is greater than the marginal social benefit at the free-market output level.

Producers should have a per-unit tax imposed to allow for production at the socially optimal output level.

24) Assume the monopoly in the graph is producing at the profit- maximizing level of output. Choose the correct combinations of price, quantity, and deadweight loss.

(E)

(C)

(B)

(A)

(D)

25) Which of the following would shift the demand curve for avocados to the right?

An increase in productivity of avocado farmers

The imposition of a price floor in the avocado market

A decrease in the price of avocados

A decrease in the price of a substitute for avocados

A decrease in the price of a complementary good for avocados

26) Use the following graph for questions

Assume the perfectly competitive market shown above is in equilibrium, but then the government adds a price ceiling at P1. With the price ceiling in effect, please choose the correct area of the consumer surplus and deadweight loss

Consumer Surplus A, C, F Deadweight Loss A, D, P1

Consumer Surplus P1, A, B, E Deadweight Loss E, B, C

Consumer Surplus P2, A, B Deadweight Loss E, C, D

Consumer Surplus P1, E, F Deadweight Loss P1, P3, B, E

Consumer Surplus P1, P3, B, E Deadweight Loss E, B, D

27) Fields’ Flour Corporation can produce 500 units of output a day employing 40 workers and 10 robots. Which of the following combinations correctly shows constant returns to scale?

(D)

(A)

(C)

(B)

(E)

28) This graph shows a perfectly competitive market. Which of the following statements are true at the firm’s profit-maximizing level of output?

I. The firm is incurring economic losses.
II. The firm is earning economic profits.
III. The firm is earning a normal profit.
IV. Price is greater than ATC.
V. Firms will exit the industry.

II and IV

I and II

I, II, and IV

I, III, and V

29) Which of the following is NOT a characteristic of a perfectly competitive firm?

In long-run equilibrium, it is allocatively efficient but not productively efficient.

Demand, marginal revenue, and average revenue are all equal.

There are low barriers to entry into the market.

It should shut down if price is less than average variable cost where marginal revenue = marginal cost.

It is a price taker.

30)

What is the marginal cost of producing the 5th unit of output?

31)

According to the graph, what combination below best describes the elasticity of demand curves D1 and D2 at a price of $6?

D1 - Perfectly inelastic and D2 - Relatively inelastic

D1 - Perfectly elastic and D2 - Perfectly elastic

D1 - Relatively elastic and D2 - Relatively elastic

D1 - Perfectly elastic and D2 - Perfectly inelastic

D1 - Relatively inelastic and D2 - Relatively elastic

32)

Assuming both perfectly competitive labor and product markets, if a bushel of apples sells for $10 and each hired worker costs $20, how many workers should be hired to maximize profits?

33) Why do perfectly competitive firms earn zero economic profit in the long run?

Perfectly competitive firms have higher start-up costs than other market structures.

Perfectly competitive firms have lower costs than other market structures.

Perfectly competitive firms have more technological innovation than other market structures.

It is easy for other firms to enter and exit a perfectly competitive industry.

It is difficult for other firms to enter and exit a perfectly competitive industry.

34) Clearing lakes and waterways of pollution will result in increased efficiency if

the marginal social benefit is greater than the marginal social cost.

the marginal social cost is greater than the marginal social benefit.

companies that pollute are given a per-unit subsidy.

the marginal external benefit is less than the marginal social cost.

the marginal social cost is positive

35) Assume Ahmed spends all his income on two goods: pizza and video games. The current cost of pizza is $6 and of video games is $20, and at his consumption level the marginal utility from eating pizza is 18 and from playing video games is 40. In order to maximize his utility, Ahmed should

consume less of both.

consume more pizza and buy fewer video games.

keep consumption at his current level.

consume more of both.

buy more video games and consume less pizza.

36) If residents of a city oppose a new highway being built through local neighborhoods, what economic concept best describes their opposition?

Private goods

Monopolies

Free-rider problem

Economic rent

Externalities

37)

In the graph above, which movement would show a movement from inefficiency to efficiency?

B to C

C to A

C to E

C to B

A to C

38) Assume the elasticity of demand for fidget spinners is 4. A 20 percent decrease in the price causes the quantity demanded for fidget spinners to increase by

40%

5%.

160%

80%

20%

39) In a monopoly that practices perfect price discrimination, which of the following is correct regarding the demand curve, marginal revenue curve, and consumer surplus?

Demand > marginal revenue and consumer surplus is zero.

Demand = marginal revenue and consumer surplus is positive.

Demand > marginal revenue and consumer surplus is negative

Demand = marginal revenue and consumer surplus is zero.

Demand > marginal revenue and consumer surplus is positive.

40) This table shows the total production of widgets with different numbers of workers used. Which of the following is true?

Diminishing marginal returns begin with the 4th worker.

Diminishing marginal returns begin with the 2nd worker.

The firm should hire 6 workers to maximize profit.

Marginal product is greatest at 6 workers.

At 6 workers, both marginal and total product equal 45.

41) If a firm is experiencing diseconomies of scale, which of the following is correct?

The firm is incurring economic losses.

Long-run average total costs are increasing as output increases.

Long-run average total costs remain constant as output increases

Firms will enter the industry if firms are experiencing diseconomies of scale.

Long-run average total costs are decreasing as output increases.

42) Assume a perfectly competitive labor market is initially in equilibrium with a downsloping demand curve and an upsloping supply curve. If the government then sets a binding minimum wage, which of the following is correct?

(D) The number or workers hired would increase.

(A) There would be a shortage in the labor market.

(B) The quantity of labor supplied would be greater than the quantity of labor demanded.

(E) The market would remain in equilibrium regardless of the wage paid.

43) SPAM (meat in a can) is considered an inferior good and grapes are a normal good. If consumers’ income decreases, what would an economist predict to happen to the price and quantity of these two goods?

(E)

(D)

(C)

(B)

(A)

44) If the regulators of a natural monopoly mandate the price to be set where price = average total cost, what best describes this situation?

The firm is pricing at the socially optimal price.

The firm is realizing economic profits.

The firm is pricing at the fair-return price.

The firm is pricing at the unregulated price.

The firm is producing an output level where MR = MC.

45) Use the following graph for questions

Assume the perfectly competitive market shown above is in equilibrium, but then the government adds a price floor at P3. With the price floor in effect, please choose the correct area of the consumer surplus and deadweight loss.

Consumer Surplus A, B, E, F and Deadweight Loss E, B, D

Consumer Surplus F, A, C and Deadweight Loss B, C, G

Consumer Surplus P1, P3, B, E and Deadweight Loss E, B, C

Consumer Surplus P3, A, B and Deadweight Loss E, B, C

Consumer Surplus P2, A, C and Deadweight Loss E, C, D

46) Assume a firm producing computer screens uses only two inputs in the production process, labor and robots. The price of a robot is $100 per unit, and labor is $20 per unit. At current output levels, the robot’s marginal product is 1,000 and labor’s is 100. In order to lower total production costs, how should the firm change its use of labor and robots?

Labor is Increase | Robots is Decrease

Labor is Decrease | Robots is Increase

Labor is Decrease | Robots is Decrease

Labor is No change | Robots is Increase

Labor is Increase | Robots is Increase

47) At a production level of zero, ABC Corporation has a total cost of $10. The marginal cost of producing the first unit is $40, and the marginal cost of producing the second unit is $20. What is the total average cost of producing two units?

$35

$20

$15

$70

$60

48)

The table shows the quantity of chocolate candy bars consumed and the total utility. In eating which candy bar would the consumer begin to experience diminishing marginal utility?

1st

3rd

2nd

5th

4th

49) Of the following, which is the best representation of a positive externality?

Getting a car ride from a friend

Paying for a ticket to a sporting event

Being disturbed from a neighbor’s loud music

Using high-speed Internet access

Enjoying the beauty of a neighbor’s meticulously cared for flowers

50) In which of the following market structures are mutual interdependence and game theory used to describe how firms relate to one another?

Perfect competition

Both monopoly and oligopoly

Oligopoly

Monopoly

Monopolistic competition

Your score is

Try Unit-wise Tests

Exam Structure

Whether you are planning to take the AP Microeconomics, your exam will include 60 (66.7% of the final score) multiple-choice questions and 1 long, 2 short FRQs free-response questions (33.3% of the final score).

Unit-Wise Test Structure

The microeconomics exam covers the nature and function of product markets! Spending time studying product markets is obviously a smart decision. The following table shows the approximate percentage of the multiple-choice questions that will come from each content area, as stated by the College Board.

For example, you can be assured that, as 55–70 percent of the AP Microeconomics exam is on the nature and function of product markets, anywhere from 33 to 42 of the 60 multiple-choice questions on the exam will come from this content area. For more specific details about the exam topics. You will find the entire AP Microeconomics course outline on the College Board’s website.

Units	Weighting
1. Basic Economics Concepts	12–15%
2. Supply and Demand	20–25%
3. Production, Cost, and the Perfect Competition Model	22–25%
4. Imperfect Competition	15–22%
5. Factor Markets	10–13%
6. Market Failure and the Role of Government	8–13%

Scoring Your Exam

Each AP exam receives a numerical score of 1 to 5, with each score meaning the following:

Colleges decide for themselves the minimum score they will accept for college credit and/or advanced placement. The American Council on Education recommends accepting grades of 3 or above, and many colleges adhere to these standards.

About 60 percent of students who take the AP Microeconomics exam score 3 or higher. Check the website of the college(s) of your choice to learn the school’s policy on granting credit or advanced placement.

Each year, the AP Test Development Committee works with experts at ETS (Educational Testing Service) and the College Board to create a formula that converts the raw score on an exam into a composite score, which is then used to determine what grade (from 1 to 5) each test taker receives. As such, we can’t tell you how many questions you need to get right in order to get a 5.

What we can tell you is that the 60 multiple-choice questions are worth 66 percent of that raw score, and that the first of the free-response questions is worth twice as much as each of the other two. If you’re trying to determine which test to take, give yourself 1.1 points for each correct multiple-choice question, 18 points for the first free-response question, and 8 points for each of the following two free-response questions.

If you want to get a sense of how frequently each grade is assigned for Microeconomics, check out the data below. That, along with your raw score, should give you a rough idea of how your score may be converted.

Exam Tips

Answer every question. There is no penalty for incorrect answers, only points for the right ones. So if you have no clue about the answer, guess anyway. Each question will have five choices, and you will have at least a 20 percent chance of getting it right.

Make sure to read every word of the question carefully. A common way test writers employ negatives is found in this sample question:

The long-run growth rate of an economy will be increased by an increase in all of the following except
(A) capital stock.
(B) labor supply.
(C) real interest rate.
(D) rate of technological change.
(E) spending on education and training.

A student could miss the word “except” at the end of the question and just choose answer A, which would be correct if there were no “except,” and miss the correct answer, C. Another similar technique to confuse students is “which of the following is NOT . . .”

Official Study Guide and Practice Test

There are many resources available to help you improve your score on the AP Economics Exams, not the least of which are your teachers. If you are taking an AP class, you may be able to get extra attention from your teacher, such as obtaining feedback on your free-response answers. If you are not in an AP course, reach out to a teacher who teaches Economics and ask if the teacher will review your writing or otherwise help you with content.

The AP Microeconomics Course home page address is
https://apstudent.collegeboard.org/apcourse/ap-microeconomics.