AP®︎ Microeconomics: Topic 5.1 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 5.1 of AP Microeconomics – Introduction to Factor Markets.
Questions List
Topic 5.1
Question 1 Easy
This question tests the following: PRD-4.A.1
What are the factors of production?
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 5.1: Introduction to Factor Markets
Learning Objective: PRD-4.A
a. Define (using graphs where appropriate) key terms and concepts relating to factor markets. b. Explain (using graphs where appropriate) the relationship between factors of production, firms, and factor prices. c. Calculate (using data from a graph or table where appropriate) the marginal revenue product and marginal resource cost.
Essential Knowledge: PRD-4.A.1
Factors of production (labor, capital, and land) respond to factor prices (wages, interest, and rent), and employers’ (firms’) decision to hire is based on the productivity of the factors, output price, and cost of the factor.
Essential Knowledge: PRD-4.A.2
The quantity of labor demanded is negatively related to the wage rate, while the quantity of labor supplied is positively related to the wage rate in a given labor market, other things constant.
