2018 AP Microeconomics MCQ - AP在线课程平台

1. The law of diminishing marginal returns implies that:

A. The marginal product of a variable input eventually decreases B. Total output always decreases C. Average total cost always decreases D. Marginal cost always decreases

2. Which of the following is true about a natural monopoly?

A. Economies of scale exist over the relevant output range B. It has no barriers to entry C. It produces at P = MC D. It faces a horizontal demand curve

3. If the government sets a binding price floor in a competitive market:

A. A surplus will result B. A shortage will result C. The market will remain in equilibrium D. Supply will increase

4. A firm should shut down in the short run if:

A. Price < AVC B. Price < ATC C. Price < AFC D. Price < MC

5. The Gini coefficient measures:

A. Income inequality B. Price elasticity C. Unemployment rate D. GDP growth