AP Microeconomics Unit 5 Practice Test

Last Updated on June 10, 2026

AP Microeconomics Unit 5 Practice Test 2026 Questions and Answers. The good news is that this unit (factor markets) applies the fundamentals of supply and demand that you have already learned.

However, this section is concerned not with the product markets but with the markets for land, labor, capital, and entrepreneurship (the factor or resource markets). The key difference to note here is that this is the exact opposite of the product markets:

Now, firms are the demanders in the factor markets, not consumers, and suppliers are not firms but individuals with their labor. The demand curve is now made of firms searching for inputs, not consumers in the market for goods and services. This chapter will help explain why a career as a doctor is likely much more lucrative than one as a college professor.

AP Microeconomics Unit 5 Practice Test

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AP Microeconomics Unit 5 Practice Test

AP Microeconomics Practice Test
Unit 6: Factor Markets
Total Items: MCQ 8
Time Limit: N/A

1) Which of the following will NOT cause a decrease in labor demand?

2)

Based on the figure, what is the wage and quantity of labor hired for the monopsony?

3) If for two resources, labor (L) and capital (K), the ratios of their marginal physical products are

the firm should:

4) Assume the marginal product of robots is 10,000 and the price of a robot is $1,000, while the marginal product of labor is 81 and the price of labor is $9. What should the firm do?

5) When compared to a perfectly competitive labor market, a monopsony will

6)

With the data in the table above, how many units of labor would the employer hire?

7) Use this chart for question

In perfectly competitive product and labor markets, if a bushel of grapes sells for $5 and each worker hired costs $25, how many workers should be hired?

8) An increase in the demand for fidget spinners will likely cause which of the following?

Your score is