AP® Microeconomics | Graded Assignment | Chapter 2 Short Answer and Essay

Name: Date:

Graded Assignment
Chapter 2 Short Answer and Essay
Subjective Short Answer
Complete this teacher-scored portion of the Unit Test and submit it to your teacher by the due date for full credit.
Spend about ten minutes on each question. Take time to think about your answer before you begin writing.

(Score for Question 1: _____ of 2 points)

1. Consider the production possibilities table for an economy that produces only mobile phones and pizzas.
Describe the shape of the production possibilities frontier.
Answer:
Type your answer here: The ppf will bowed outward

(Score for Question 2: _____ of 2 points)

2. What you must give up to get something else? Give an example.

Answer:
Type your answer here: For example, studying and hanging out with friends. The benefit of studying is high score
on exam, the opportunity cost is not able to hang out with friends.

Essay

Spend about thirty minutes on the essay question. Take time to think about your answer before you begin writing.
You may want to begin with an outline to organize your ideas and to make sure you answer all parts of the essay.

(Score for Question 3: _____ of 10 points)

3. Using the outline below, draw a circular-flow diagram representing the interactions between households
and firms in a simple economy. Explain briefly the various parts of the diagram. 
 

Answer:
Type your answer here:

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 AP® Microeconomics | Graded Assignment | Chapter 2 Short Answer and Essay

The black line represent the flow of money; blue line represent flow of inputs and outputs.

Households sell factor of production to business through factor market. Business then use this
to make and sell goods and services to households through product market.

Households spending become revenue of business through product market.

Businesses spend this in the factor market, paying for land, capita, labor, and entrepreneurship
needed to produce goods and services.

The inner circle represent the

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Copying or distributing without K12’s written consent is prohibited.