A normal good is a good for which

demand increases when incomes increase

If you have eaten two ice cream cones, you are less likely to purchase a third due to...

the law of diminishing marginal utility

The law of supply states that

There is a direct relationship between P and Qs

The law of demand states that

there is an inverse relationship between P and Qd

The law of diminishing marginal utility states that with increased consumption of a product...

there is a decreased satisfaction with the product

An inferior good is any good for which

demand increases when incomes decrease

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AP Macroeconomics Unit 1: Basic Economic Concepts

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Questions 20

Answers

1
Ford can produce 5 trucks or 10 cars, what is the opportunity cost of 20 cars? (if constant)
10 trucks
40 trucks
15 trucks
5 trucks
2
an example of an inferior good is
lobster
a mercedes
socks
Kraft Dinner
3
Unemployment is seen
outside the curve
at the right-most point on the curve
at the left-most point on the curve
inside the curve
4
A "bowed out" PPC shows
increasing opportunity cost
efficiency
technological advancement
constant opportunity cost
5
When avocado prices increase, their quantity demanded will...
cannot be determined
decrease
increase
stay the same
6
A normal good is a good for which
demand is always constant
demand increases when incomes increase
demand is always low
demand decreases when incomes increase
7
An example of a substitute for peanut butter is
Reese's Pieces
Almond Butter
Jelly
Bread
8
An example of a country with a centrally planned economy is
the United Kingdom
North Korea
Germany
China
9
A complement for peanut butter is
Reese's Pieces
almond butter
Jelly
Peanuts
10
When all resources are being utilized efficiently, a point on the PPC will be...
at any point along the curve
outside the curve
inside the curve
on the x-axis
11
If you have eaten two ice cream cones, you are less likely to purchase a third due to...
the law of demand
the law of diminishing marginal utility
the law of supply
increasing opportunity cost
12
The law of supply states that
There is an inverse relationship between P and Qs
The greater the supply, the more consumers will buy
There is a direct relationship between P and Qs
There is a direct relationship between P and Qd
13
The law of demand states that
there is an inverse relationship between P and Qd
The more people enjoy a good the more demand there is for it
There is a direct relationship between P and Qd
Higher incomes lead to higher demand
14
If the price of a good increases, the demand for a substitute will
increase
(not enough information)
decrease
not be affected
15
If the price of a good decreases, the demand for a complement will
stay the same
(not enough information)
increase
decrease
16
The law of diminishing marginal utility states that with increased consumption of a product...
The satisfaction will remain constant
there is a decreased satisfaction with the product
the satisfaction will go up or down depending on the product
there is an increased satisfaction with the product
17
An inferior good is any good for which
demand increases when incomes decrease
demand increases when incomes increase
demand is always low
supply is always low
18
Economic growth would result in which change to the PPC?
curve moving outwards
point moving right
point moving outside the curve
point moving left
19
When milkshake prices increase, quantity supplied will...
increase
decrease
cannot be determined
stay the same
20
An example of a normal good is
Cup-O-Noodles
a Lamborghini
a t-shirt
a hotdog

AP Macroeconomics Unit 1: Basic Economic Concepts Flashcards | StudBud