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Part A: Multiple Choice

AP Micro Unit 6 Practice Test: Market Failure and the Role of Government

The sixth unit of AP Microeconomics includes analysis of socially efficient outcomes related to negative externalities, positive externalities, and public goods. It also includes an analysis of the effects government intervention in the various product market structures. Finally, Unit 6 analyzes income inequality with tools including the Lorenz Curve and Gini Coefficient.

Next: Part A: Multiple Choice

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AP Micro Unit 6 Practice Test: Market Failure and the Role of Government

Free AP Microeconomics Tests

AP Micro Practice Tests

Full-Length AP Micro Practice Exam

AP Micro Unit 6 Practice Test: Market Failure and the Role of Government

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1. Question

To produce the socially efficient amount of a public good, a government should provide the good where

2. Question

If a negative externality is created by the production of a good, the private equilibrium quantity will be

3. Question

If a positive externality is created by the consumption of a good, the private equilibrium quantity will be

4. Question

If the production of a good creates a negative externality, the government can improve the market’s social efficiency by

5. Question

If the consumption of a good creates a negative externality, the government can improve the market’s social efficiency by

6. Question

If the production of a good creates a positive externality, the government can improve the market’s social efficiency by

7. Question

If the consumption of a good creates a positive externality, the government can improve the market’s social efficiency by

8. Question

Pure public goods are

9. Question

Common goods are

10. Question

A natural monopoly produces a good that is

11. Question

A government wants to regulate a natural monopoly to produce the allocatively efficient quantity. What should the government do?

12. Question

A society can move its nation’s Lorenz curve closest to the 45-degree line with:

Next: Part A: Multiple Choice