AP Microeconomics Unit 1 Practice Test 2026 Questions Answers

Last Updated on September 30, 2026

AP Microeconomics Unit 1 Practice Test 2026 Questions and Answers. Perhaps the easiest and most concise review of economic concepts is the economics cheer. The cheer is a series of body positions accompanied by the chanting of economic concepts to help you learn the essentials.

It might not help you understand the meaning behind the graphs, but it will remind you what they look like. Properly drawn graphs are valuable both as a signal to the grader of intelligent life and as a springboard to the correct answers that you can often bring to light by visualizing the graphs.

The cheer is easy to learn and involves making different shapes with your body. In each case, make the curve so that it looks correct from your own perspective, not that of someone looking at you. Now, follow along (but you might want to do this in private).

AP Microeconomics Unit 1 Practice Test

AP Microeconomics Practice Test
Unit 1: Basic Economics Concepts
Total Items: MCQ (21)
Time Limit: N/A

1) Given the table below, which statement is true?

England has the absolute advantage in both products.

France should specialize in and export wheat while England should specialize in and export cloth.

France has the comparative advantage in cloth.

England has the comparative advantage in wheat.

France has the absolute advantage in wheat while England has the absolute advantage in cloth

2) Economists use the term “capital” to mean

money

plant and equipment.

where the central government is located.

the center of the economy.

a major idea.

3) Which of the following would NOT be considered a factor of production for a car company?

the cost of the car designer’s studio

the car designer’s time

the car designer’s creativity

the car designer’s preference for designing homes instead of cars.

the steel and rubber used in car production.

4) When an economy produces a combination of goods that lies on the production possibilities frontier,

resources are being used fully and efficiently.

prices are constant.

opportunity cost is constant.

resources will never be depleted.

prices will rise.

5) A demand curve slopes downward for an individual as the result of

diminishing marginal utility

diminishing marginal returns

the Fisher effect

diminishing returns to scale

increasing marginal cost

6) Macroeconomics focuses on

government and its laws that affect commerce.

individuals and their resource use.

corporations and their production levels.

the resource use of the entire nation.

money

7) The primary focus of microeconomics is

families and how they make money.

firms and how they make profits.

individual units within the overall economy.

government

small countries.

8) Production possibilities frontiers are concave to the origin because

of inefficiencies in the economy.

of opportunity cost.

of the law of increasing costs.

of constant opportunity costs.

the extreme points are not as well established.

9) Economics is a social science that

is primarily concerned with money.

is primarily concerned with how resources are used.

relies solely on the scientific method for analysis.

is primarily concerned with maximizing spiritual well-being.

is purely normative.

10) When opportunity cost is constant across all production levels, the production possibilities frontier is

concave to the origin.

convex to the origin.

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shifted

a straight diagonal line sloping downward from left to right.

11) Given the following table (combinations that can be produced using resources fully and efficiently),

the opportunity cost of soup is

5 nuts

5 soup.

20 percent.

500 percent.

not constant.

12)

The above diagram represents the production possibilities of Country A and Country B, with the use of the same resources. Which of the following would be true for both Country A and Country B?

Countries A and B cannot benefit from trade with each other

Country A has a comparative advantage in TVs and Country B has a comparative advantage in DVD players.

Country A has a comparative advantage in DVD players and Country B has a comparative advantage in TVs.

Country A has an opportunity cost of 1 DVD players when they produce 1¼ TV

Country B has an opportunity cost of TV when they produce one DVD player.

13) Given the following table (combinations that can be produced using resources fully and efficiently),

the opportunity cost of apples is

10/7 oranges.

7/10 oranges.

10/7 apples

7/10 apples

70 percent

14) Land refers to

all productive resources.

all natural resources.

farmland only.

real estate.

chattels

15) The supply curve for lawn-mowing services is likely to slope upward because of

decreasing marginal costs

increasing opportunity cost of time

diminishing marginal utility

increasing returns to scale

economies of scope

16)

For the market supply and demand graph above, when the demand curve shifts from D to D1 and the supply curve shifts from S to S1, then

the equilibrium price falls and the equilibrium quantity is undetermined

the equilibrium price falls and the equilibrium quantity is unchanged

the equilibrium price is unchanged and the equilibrium quantity rises

the equilibrium price is undetermined and the equilibrium quantity falls

None of the above

17) Given the table below, what is the opportunity cost of wheat in France?

½ cloth

½ wheat

2 cloth

2 wheat

½ cloth

18) If both supply and demand increase, the result is

a definite increase in price and an indeterminate change in quantity

a definite increase in quantity and an indeterminate change in price

a definite decrease in quantity and an indeterminate change in price

a definite decrease in price and a definite increase in quantity

a definite increase in price and a definite increase in quantity

19) Which of the following statements is positive?

An economy that produces more butter than guns is better off than an economy that produces more guns than butter.

Nations should concentrate their resources on producing wholesome consumer goods as opposed to the weapons of war.

The production possibilities frontier is concave to the origin because of the law of increasing costs.

Nations ought to devote at least some of their resources to national defense.

Nations would do better by producing toward the middle of their production possibilities frontiers as opposed to the extreme points near the axes.

20) The law of increasing cost

does not apply to guns and butter.

is the result of resources not being perfectly adaptable between the production of two goods.

implies that prices will rise when the costs of making a good rise.

causes the production possibilities frontier to be a straight line.

implies that opportunity costs will rise as production levels fall.

21) What you give up to pursue another alternative is known as

capital

land

money cost.

the price of the product

opportunity cost.

Your score is

See also:

Free AP Micro Practice Test 2026 Study Guide [PDF]