AP®︎ Microeconomics: Topic 3.4 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.4 of AP Microeconomics – Types of Profit.
Questions List
Topic 3.4
Question 1 Easy
This question tests the following: CBA-2.C.1
What does profit mean in economics?
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 3.4: Types of Profit
Learning Objective: CBA-2.C
a. Define the different types of profit. b. Explain how firms respond to profit opportunities. c. Calculate a firm’s profit or loss.
Essential Knowledge: CBA-2.C.1
Firms respond to economic profit (loss) rather than accounting profit.
Essential Knowledge: CBA-2.C.2
Accounting profit fails to account for implicit costs (such as cost of financial capital, compensation for risk, or an entrepreneur’s time), which, if fully compensated, result in normal profit.
