AP Microeconomics Final Exam questions with correct answers

All of the following are true of allocatively efficient markets except CORRECT ANSWER Consumers place a higher value on that product that it is costing firms to produce What type of efficiency is defined as the mix of goods and services produced that are just what society desires? CORRECT ANSWER Allocative efficiency A perfectly competitive firm in the long run will CORRECT ANSWER Earn normal profits Goods that are consumed together, such as cars and gasoline or peanut butter and jelly CORRECT ANSWER Complementary goods Which of the following has a negative cross elasticity? CORRECT ANSWER Complementary goods What isn't a cause of deadweight loss? CORRECT ANSWER Perfect compeititon Which of the following does not cause the demand curve to shift? CORRECT ANSWER Change in the price of the good The demand of a perfectly competitive firm is which of the following CORRECT ANSWER Elastic