Question 1
In a command economy
Correct Answer:
the central government dictates the answers to the fundamental economic questions
Explanation:
Correct answer: the central government dictates the answers to the fundamental economic questions
Question 2
Allocative efficiency
Correct Answer:
implies optimal resource deployment.
Explanation:
Correct answer: implies optimal resource deployment.
Question 3
If the market for corn is competitive, then
Correct Answer:
there must be many buyers and sellers.
Explanation:
Correct answer: there must be many buyers and sellers.
Question 4
Company A and Company B are competing firms that are deciding whether or not to expand their operations. The payoff matrix provided shows the profit to be earned (expressed in thousands) from any decision that is made. Based on the data provided
Correct Answer:
Both companies have a dominant strategy and a Nash equilibrium exists.
Explanation:
Correct answer: Both companies have a dominant strategy and a Nash equilibrium exists.
Question 5
A price discriminating monopoly differs from a non-discriminating monopoly because a discriminating monopoly
Correct Answer:
earns more revenue than a non-discriminating monopoly
Explanation:
Correct answer: earns more revenue than a non-discriminating monopoly
Question 1
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About this Exam

Prepare with the AP Microeconomics Unit 2 Practice Test practice quiz. This question bank includes 33 questions covering market, price, firm, company, and monopoly. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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AP Microeconomics Unit 2 Practice Test

This practice set contains 33 questions from the matching question bank and focuses on market, price, firm, company, and monopoly. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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