Unit 1 AP Macro Test Review

Which of the following is a NORMATIVE statement?

Price of soccer balls decreases. What happens?

A terms of trade that benefits both countries is 1 laptop for 4 phones.

What is a recession?

Mudassir decides to buy two air pumps and helps Aidan fill air into soccer balls. What will happen to the supply curve?

Which statement is true about the ceteris paribus assumption?

The falling output in an economy is consistent with which of the following?

There are opportunities for mutually beneficial trade between two countries when

What is Korea's oppurtunity cost of making 1 motorcycle?

Who has an absolute advantage?

The law of demand states that the relationship between quanity demanded and price is negative

Mr. Micheals says that he will give anyone who buys a soccer ball from Aidan extra credit on the test. What will happen?

You have a science test tomorrow, you can either study or play videogames. What is the oppurtunity cost of studying?

During the recession phase of a business cycle, which of the following is likely to increase?

The law of supply states that the relationhsip between price and quantity supplied is positive

The study of costs and benefits of doing a little bit more of an activity instead of a little bit less is

Price will tend to fall when

Consider this situation: The price level rises and cash loses value. This is an example of...?

A good is inferior if an increase in income leads to a decrease in demand

A decrease in the price of a complement would decrease the demand for the price of the normal good

If supply and demand increase together, will the equilibrium quantity also increase?

What is the invisible hand?

If the demand for planting apple trees decreases, what is most likley to happen?

What is opportunity cost?

If the price of a good is expected to fall in the next few months, what will occur?

The price of tickets to the game decreases. What will the resulting graph look like?

Which of the following is a basic source of economic growth in the production possibilities model?

What is a terms of trade that benefits BOTH countries?

Allocative efficiency is achieved at

So, who has the comparative advantage in making motorcycles?

Read the question and pick the correct answer!

Price will eventually fall when..

Price of the soccer ball fabric (key resource) increases. What will happen?

Which one is a capital good?

What are the 4 factors of production?

Pick the correct example of Entrepreneurship.

The best player on the team gets injured. What might happen to the demand curve?

Point A is:

Which statement is true in a competetive market?

What is U.S.A's oppurtunity cost of making 3 iPhones?

Who has a comparative advantage?

The fundamental problem with command economies is a lack of

Who has the comparative advantage in making cars?

T or F: Scarcity means that we have limited wants and unlimited resources.

Aidan's air pump for filling the balls with air suddenly breaks. What happens to the supply curve?

T or F: A construction worker is an example of capital.