AP®︎ Microeconomics: Topic 2.8 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 2.8 of AP Microeconomics – The Effects of Government Intervention in Markets.
Questions List
Topic 2.8
Question 1 Easy
This question tests the following: POL-1.A.1
In a market, what is the equilibrium price?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Microeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 2.8: The Effects of Government Intervention in Markets
Learning Objective: POL-1.A
a. Define forms of government price and quantity intervention. b. Explain (using graphs where appropriate) how government policies alter consumer and producer behaviors that influence incentives and therefore affect outcomes. c. Calculate (using data from a graph or table where appropriate) changes in market outcomes resulting from government policies.
Essential Knowledge: POL-1.A.1
Some government policies, such as price floors, price ceilings, and other forms of price and quantity regulation, affect incentives and outcomes in all market structures.
Essential Knowledge: POL-1.A.2
Governments use taxes and subsidies to change incentives in ways that influence consumer and producer behavior, shifting the supply and demand curves accordingly.
Essential Knowledge: POL-1.A.3
Taxes and subsidies affect government revenues or costs.
Essential Knowledge: POL-1.A.4
Government intervention in a market producing the efficient quantity through taxes, subsidies, price controls, or quantity controls can only decrease allocative efficiency.
Essential Knowledge: POL-1.A.5
Deadweight loss represents the losses to buyers and sellers as a result of government intervention in an efficient market.
Essential Knowledge: POL-1.A.6
The incidence of taxes and subsidies imposed on goods traded in perfectly competitive markets depends on the elasticity of supply and demand.
