AP Macroeconomics Unit 1 FRQ Practice: Free Response Questions

Free Response Question · Unit 1 · PPC, Comparative Advantage & Markets

The country of Veridia can produce either Solar Panels or Textiles using its available resources. The table below shows two possible production combinations on Veridia's production possibilities curve (PPC), along with the maximum output of its neighbor, Lumora, which has different resource endowments.

Country	Max Solar Panels	Max Textiles
Veridia	100	200
Lumora	60	180

Assume each country uses all of its resources fully and efficiently, and that each PPC is linear (constant opportunity costs) for this question.

Calculate Veridia's opportunity cost of producing one Solar Panel, in terms of Textiles. Show your work.

✓ Model answer (earns the point)

Veridia's opportunity cost of 1 Solar Panel = Max Textiles ÷ Max Solar Panels = 200 ÷ 100 = 2 Textiles. To produce one more Solar Panel, Veridia must give up 2 units of Textiles.

Why it scores: Shows the correct ratio (textiles given up ÷ solar panels gained) and arrives at the correct numeric answer (2 Textiles) with units labeled. A numeric answer with no units or no shown work would earn partial credit at best.

Determine which country has the comparative advantage in Solar Panels. Justify your answer using opportunity cost.

✓ Model answer (earns the point)

Veridia has the comparative advantage in Solar Panels. Veridia's opportunity cost of 1 Solar Panel is 2 Textiles (from Part A). Lumora's opportunity cost of 1 Solar Panel is 180 ÷ 60 = 3 Textiles. Since 2 Textiles < 3 Textiles, Veridia gives up less to produce a Solar Panel, so Veridia holds the comparative advantage — even though Veridia can also produce more Solar Panels in absolute terms. Comparative advantage belongs to whichever country sacrifices fewer Textiles per Solar Panel, regardless of absolute output.

Why it scores: Correctly calculates both countries' opportunity costs of Solar Panels, compares them, and identifies the lower one (Veridia, 2 Textiles vs. Lumora's 3 Textiles) as holding the comparative advantage. Simply citing absolute output (100 > 60) without comparing opportunity costs would not earn the point.

Suppose Veridia and Lumora specialize according to comparative advantage and then trade with each other. Explain why total combined output of both goods is likely to increase as a result.

✓ Model answer (earns the point)

When each country specializes in the good for which it has the lower opportunity cost — Veridia in Solar Panels, Lumora in Textiles (since Lumora's opportunity cost of Textiles is lower than Veridia's) — each country devotes all its resources to its most efficient use. Because resources are being used where they generate the most output per unit of opportunity cost, the combined production possibilities of the two countries together exceed what either could produce alone at any single combination on their individual PPCs. Trade then lets each country exchange its surplus for the good it no longer produces, so both countries can consume more of both goods than they could in isolation.

Why it scores: Connects specialization based on comparative advantage to an increase in total output, and explains the mechanism (resources allocated to lowest-opportunity-cost use) rather than just asserting "trade is good." Strong responses explicitly tie the gain back to opportunity cost.

How to score points on AP Macroeconomics FRQs

Show your work on every calculation. A correct numeric answer with no visible math often earns less credit than a clearly labeled calculation, even if the final number is the same.
Always tie comparative advantage back to opportunity cost, not absolute output. Graders specifically look for a stated or calculated opportunity-cost comparison.
Answer the verb in the prompt. "Calculate" needs a number and units. "Determine and justify" needs a conclusion PLUS the reasoning. "Explain" needs a causal chain, not just a restated fact.
Label your units. "2" is not the same as "2 Textiles" to an AP grader — missing units can cost you the point even with correct math.
Be concise but complete. 2–4 sentences per part is usually enough. Every sentence should add something a grader can mark.