AP Macroeconomics Unit I Review

High tariffs help countries consume outside their production possibilities curve.

If the price of inputs decrease for the product Klutons,what occurs to the market?

The highest point of the business cycle is called the..

If the current market price is above the equilibrium price there will be a....

If Taylor Swift writes a song about Reebok shoes, what will likely happen to the market?

If the equilibrium price was $5 and the government imposed a price ceiling of $10, what would happen in the market?

If a good decreases in price and it increases the demand of a related good, they are...

A straight line on the PPC shows a __________ opportunity cost.

If Zak can produce 3 N64s or 2 SNESs and Steve can produce 6 N64s or 2 SNES, then...

Which of the following is not true of inflation?

The problem of scarcity means...

If the market price of a particular good decreases then economists would say...

Supply curve shifts to the left. What happens to equilibrium price and quantity?

If a good increases in price and it decreases the demand for a related good than the two are..

If supply increases and demand decreases, then...

Trade allows us to increase our standard of living on average.

Pretentious economists use this term to reflect the concept in models that "all else equal"

If the market price is below the equilibrium price, there will be a...

If a key substitute's price increased, then what would happen in the market for a product?

A takes 5 hrs to make clothes, 10 to make food. B takes 10 hrs to make clothes, 30 to make food

Demand curve shifts to the right. What happens to equilibrium price and quantity?

What must be true if a company is producing inside the production possibility curve?

Which of these statements reflects macroeconomic principles?

A comparative advantage is said to be had if..

A good that decreases in demand when income level goes up is known as a ...

Which of the following resources would NOT be considered scarce?

If a country is at the trough of the business cycle...

Which of these statements deals with normative economics?

A good that increases in demand when income level goes up is known as..

Which of the following would not cause a shift in the demand for oranges?

If supply and demand both increase then...