AP Microeconomics Practice Test (2026)

What is the fundamental problem of economics?

Jordan is a second-year student at a state university who works at the Maple Grove Grocery Co-op, a local employee-owned supermarket, earning a confirmed wage of $15.00 per hour. On Wednesday evening, Jordan must choose how to spend the 7:00 p.m. to 8:00 p.m. hour. The three mutually exclusive options on the table are (1) picking up the open shift at the Co-op that pays $15 for that hour, (2) studying alone for the Thursday morning AP Microeconomics exam, or (3) attending a free trivia night at the campus student center. Jordan ranks the study session as the second-most-attractive option after the grocery shift, and ranks the trivia night third. After a brief deliberation, Jordan chooses to study, which means the grocery shift goes unfilled for that hour and Jordan skips the trivia event. No other income, grade, or enjoyment is affected by the one-hour choice, and Jordan cannot reschedule the shift, the study session, or the trivia event.

Based on the scenario, what is the opportunity cost to Jordan of choosing to study for the hour?

Which of the following is considered a factor of production in economics?

In which type of economic system are the fundamental economic questions (what, how, and for whom to produce) primarily answered by the interaction of buyers and sellers in markets?

An outward shift of a country's production possibilities curve (PPC) represents:

A point located inside a country's production possibilities curve (PPC) indicates that the country is:

The small island economy of Rialta produces only two goods using its fixed resources: canoes (a capital good made of hardwood and hand tools) and fishing nets (made from specialized fiber by trained weavers). Economists have compiled the following combinations along Rialta's current production possibilities curve: - 100 canoes and 0 nets - 80 canoes and 30 nets - 50 canoes and 50 nets - 10 canoes and 60 nets - 0 canoes and 65 nets As Rialta shifts resources from canoe production toward net production, each additional batch of 10 nets requires the economy to give up a larger and larger number of canoes (3.33 canoes per net at first, then 3 canoes per net, then 4 canoes per net, then 2 canoes per net as the last reallocation moves workers least suited to canoe-making). Economists note that this is because the hardwood cutters and weaver-trainees are not perfectly interchangeable across tasks. When graphed with canoes on the vertical axis and nets on the horizontal axis, the curve through these five points bows outward from the origin.

The bowed-out shape of Rialta's production possibilities curve as described illustrates which of the following?

Which of the following statements best describes the difference between absolute advantage and comparative advantage?

Country A can produce 10 units of wheat or 20 units of cloth in a day. Country B can produce 8 units of wheat or 12 units of cloth in a day. Which of the following terms of trade would be mutually beneficial for both countries?

Clearwater Coffee Co., a small chain of specialty cafes, is deciding how many hours to keep its flagship downtown location open each day. Its operations manager has compiled the following table of additional revenue (marginal benefit) and additional cost (marginal cost) for each extra hour the store stays open past 5 p.m.: - 6th hour (5-6 p.m.): marginal benefit $180, marginal cost $110 - 7th hour (6-7 p.m.): marginal benefit $140, marginal cost $115 - 8th hour (7-8 p.m.): marginal benefit $120, marginal cost $120 - 9th hour (8-9 p.m.): marginal benefit $80, marginal cost $125 - 10th hour (9-10 p.m.): marginal benefit $40, marginal cost $130 The owner, Maya, is debating whether to use total-benefit, total-cost, average, or marginal reasoning to decide the optimal closing time. She knows the store already earns positive total profit on the first five hours of the day.

Consistent with the principle of cost-benefit analysis, Maya should continue to keep the cafe open for an additional hour as long as:

A consumer is deciding how many slices of pizza to eat. The marginal benefit of the third slice is $3, and the marginal cost of the third slice is $2. According to marginal analysis, the consumer should:

Which of the following is an example of an economic incentive?

The graph above shows a country's Production Possibilities Curve (PPC) for producing two goods: consumer goods and capital goods. Point X is located on the PPC, producing 50 units of consumer goods and 30 units of capital goods. Point Y is located inside the PPC, producing 40 units of consumer goods and 20 units of capital goods. Point Z is located outside the PPC, producing 60 units of consumer goods and 40 units of capital goods.

Based on the provided PPC information, which of the following statements is true?

Two countries, Alpha and Beta, can produce either cars or trucks. The table below shows the maximum output each country can produce in a month with the same amount of resources: | Country | Cars (units) | Trucks (units) | | :------ | :----------- | :------------- | | Alpha | 100 | 50 | | Beta | 120 | 40 |

Based on the data, which country has a comparative advantage in producing trucks, and what is its opportunity cost of producing one truck?

In the fictional country of 'Econia,' the government owns all major industries, sets production quotas for factories, and determines the prices of most goods and services. While individuals can own small businesses, the vast majority of economic decisions are made by a central planning committee.

Based on the description, Econia's economic system most closely resembles a:

Sarah has a ticket to a concert that she bought for $50. On the day of the concert, her friend invites her to a party, which Sarah would enjoy more than the concert. The party is free to attend. If Sarah goes to the party, she cannot resell her concert ticket.

What is the opportunity cost for Sarah if she decides to go to the party instead of the concert?

A local bakery is considering whether to hire an additional baker. The table below shows the total number of cakes produced per day with different numbers of bakers: | Number of Bakers | Total Cakes Produced | | :--------------- | :------------------- | | 1 | 20 | | 2 | 35 | | 3 | 45 | | 4 | 50 | Each baker costs the bakery $100 per day. Each cake sells for $15.

To maximize its profit, how many bakers should the bakery hire?