AP Microeconomics. Scoring Guidelines
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1 2018 AP Micrecnmics Scring Guidelines 2018 The Cllege Bard. Cllege Bard, Advanced Placement Prgram, AP, AP Central, and the acrn lg are registered trademarks f the Cllege Bard. Visit the Cllege Bard n the Web: AP Central is the fficial nline hme fr the AP Prgram: apcentral.cllegebard.rg
2 Questin 1 9 pints ( ) (a) 5 pints: One pint is earned fr drawing a crrectly labeled graph fr a mnply shwing a dwnward slping demand (D) curve with the marginal revenue (MR) curve belw the demand curve. One pint is earned fr shwing the marginal cst (MC) curve rising and passing thrugh the minimum f the average ttal cst (ATC) curve. One pint is earned fr shwing the prfit-maximizing quantity, Q m, where MR = MC. One pint is earned fr shwing the price, P m, frm the demand curve at Q m The Cllege Bard. Visit the Cllege Bard n the Web:
3 Questin 1 (cntinued) One pint is earned fr cmpletely shading the area representing negative ecnmic prfit and shwing the ATC curve abve the demand curve fr all quantities. (b) 1 pint: One pint is earned fr stating that the price must be greater than average variable cst, OR ttal revenue must be greater than ttal variable cst, OR the firm s current ecnmic lss is less than its fixed cst, which is equal t the firm s lss if it shuts dwn. (c) 1 pint: One pint is earned fr stating that ttal revenue will decrease and explaining with ne f the fllwing reasns. The mnplist is perating n the elastic prtin f the demand curve. The quantity effect is greater than the price effect. The percentage change in quantity demanded is greater than the percentage change in price. MR is psitive. (d) 2 pints: One pint is earned fr stating r graphically shwing that the wage rate will increase because the market supply f labr decreases (shifts left). One pint is earned fr stating the marginal revenue prduct (MRP) f the last wrker hired will increase and explaining with ne f the fllwing reasns. The firm is hiring fewer wrkers nw and therefre the marginal prduct f the last wrker hired increases (diminishing marginal prduct). The market wage (marginal factr cst r MFC) increased and the prfit-maximizing firm will hire where MRP = MFC. There is an upward mvement alng the firm s MRP curve as wage r MFC increases (shifts up) The Cllege Bard. Visit the Cllege Bard n the Web:
4 Questin 1 (cntinued) 2018 The Cllege Bard. Visit the Cllege Bard n the Web:
5 Questin 2 6 pints ( ) (a) 1 pint: One pint is earned fr stating psitive externality, and fr explaining that either marginal scial benefit is greater than marginal private benefit (MSB>MPB) r the equilibrium quantity is less than the scially ptimal quantity. (b) 1 pint: One pint is earned fr identifying the market equilibrium price as $6 and the market equilibrium quantity as 16 units. (c) 1 pint: One pint is earned fr identifying the area f the deadweight lss as DEF. (d) 1 pint: One pint is earned fr identifying $4 as the dllar value f the per-unit subsidy. (e) 2 pints: One pint is earned fr identifying 8 units. One pint is earned fr stating n and explaining with ne f the fllwing reasns: The quantity exchanged in the market will be less than the scially ptimal quantity. MSB>MSC at a quantity f 8 units. Deadweight lss increased after the price flr The Cllege Bard. Visit the Cllege Bard n the Web:
6 Questin 3 5 Pints ( ) (a) 1 pint: One pint is earned fr crrectly calculating the gain, 20 pints. (b) 1 pint: One pint is earned fr crrectly calculating the pprtunity cst, 6 pints fr that hur (r 6/20). (c) 1 pint: One pint is earned fr stating that the pprtunity cst increases and fr using ne the fllwing explanatins: The expected scre n micrecnmics decreases at an increasing rate with each additinal hur spent studying histry. The marginal cst is rising (expected scre n micrecnmics decreases) fr each additinal hur spent studying histry. (d) 1 pint: One pint is earned fr stating that Nirali shuld spend 2 hurs n studying micrecnmics and 3 hurs n studying histry t maximize the sum f expected scres. (e) 1 pint: One pint is earned fr stating that Nirali will spend the additinal hur studying micrecnmics because studying micrecnmics will increase her expected ttal scre by 8 pints cmpared t 5 pints if spent studying histry The Cllege Bard. Visit the Cllege Bard n the Web:
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