the best alternative forgone when choosing

What might be said of a point like "A"

The economy is under utilizing its resources

is an increase in the overall level of prices

An economy is said to have a comparative advantage if it

has the lowest opportunity cost of producing a good

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Basic Concepts 1

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AP Macroecon unit 1-1

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Questions 23

Answers

1
Points "B" and "D" are on the
Frontier
Edge
Line
Apex
2
The opportunity cost of moving from point "A" to point "B" is
1 million bushels of corn
2 million bushels of coffee
2 million bushels of corn
1 million bushels of coffee
3
Opportunity cost is
the dollar value of the product
the benefit derived from the product
the best alternative forgone when choosing
half the monetary cost of a product
4
How would a point like "C" be reached?
A recession
Lower unemployment
Less access to human capital
More resources and technology
5
Type of economics dealing with individuals and businesses
Microeconomics
International
Macroeconomics
6
We are forced to make choices because of
exploration
efficiency
scarcity
the margin
7
A period of falling output and high unemployment is called
peak
booms
recovery
recession
8
The shape of this PPC indicates
constant opportunity costs
decreasing opportunity costs
Increasing opportunity costs
9
Increases in total output realized when individuals specialize in tasks and trade is called
marginal analysis
foreign exchange
gains from trade
trade-offs
10
You can spend $100 on a textbook or a concert, you choose the concert. Your opportunity cost...
is $100
is undefined
is the $100 and the textbook
is the textbook
11
What groups have to deal with scarcity
communist economies
industrialized societies
pre-industrial societies
all societies
12
This image represents the...
expansionary cycle
business cycle
contractionary cycle
productivity cycle
13
The shape of the frontier indicates....
Constant opportunity costs
Increasing opportunity costs
decreasing opportunity costs
14
What might be said of a point like "A"
The economy is efficient
They could produce more oranges, but not sweaters
The economy could produce more sweater, but not oranges
The economy is under utilizing its resources
15
Economic growth would best be represented by movement from
B to D
B to C
D to A
A to B
16
What productive resource does the image represent?
Entrepreneurship
Labor
Land
Capital
17
With trade, a country can
Shift its PPC right
produce outside its PPC
avoid opportunity cost
consume outside its PPC
18
Which of the following is an example of labor?
a nurse
a share of stock
A cement mixer
A barrel of oul
19
What is the study of scarcity and choice
Math
Chemistry
English
Economics
20
Inflation...
is an increase in the overall level of prices
increases a nations standard of living
is a sustained fall in price levels
is the movement of the economy toward growth
21
Type of economics that deals with the entire economy
Macroeconomics
Mincroeconomics
22
Which point is unattainable given the current amount of resources?
D
C
A
B
23
An economy is said to have a comparative advantage if it
con produce less goods than others
has the highest opportunity cost of producing a good
has the lowest opportunity cost of producing a good
can produce more goods than others

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