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AP Macroeconomics- Unit I Flashcards | StudBud
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AP Macroeconomics- Unit I
AP Macroeconomics- Unit I
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These questions cover the basic ideas presented in Unit I. It is NOT comprehensive.
Flashcards
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Questions
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Answers
1
The PPF is linear when the opportunity costs are:
constant
zero
increasing
decreasing
2
What is the formula for calculating opportunity cost?
Gain/Loss
Loss/Gain
X-M
M-X
3
The PPF shows the various combinations of output that an economy:
Can produce
Demands
Should produce
Will produce
4
Which of the following is the correct shape for an inelastic demand curve?
Upward sloping
Vertical
Horizontal
Downward sloping
5
Approximately what percentage of the world's population faces scarcity?
100%
0%
50%
90%
6
When the government attempts to increase equality what does it sacrifice?
Resources
Efficiency
Productivity
Capital
7
Which of the following owns the means of production in the circular flow model?
Businesses
Households
None of the choices provided
Goverment
8
Which of the following is not a factor of production?
Capital
Money
Land
Labor
9
Which of the following equations represents inelastic supply?
Es=1
Es>1
Es<1
Es=0
10
The PPF is bowed outward when the opportunity costs are:
increasing
constant
zero
decreasing
11
The ppf represents the possible combination of goods and services that an economy:
Will produce
Cannot produce
Can produce
Should produce
12
A decrease in the quantity supplied is represented by:
a downward movement along the curve
an upward movement along the curve
<p>a rightward shift of the curve</p>
a leftward shift of the curve
13
An increase in demand is represented by:
a movement upward along the demand curve
a rightward shift of the demand curve
a leftward shift of the demand curve
a movement downward along the demand curve
14
Which of the following characteristics support a good or service with inelastic supply?
Short Run
Resources are difficult to obtain
Goods are perishable
All of the above
15
Which of the following characteristics support a good or service with inelastic demand?
Small Portion of Income
Short Run
Necessity
All of the above
16
Based on the provided graph: what has happened?
Technology for motor vehicles rose
Technology for motor vehicles fell
Technology for food rose
Technology for food fell
17
What is the shape of the curve which represents constant opportunity costs?
Bowed Out
Linear
Concave
Convex
18
What happens to equilibrium price and quantity when supply shifts to the right?
price and quantity both fall
price falls and quantity rises
price and quantity both rise
price rises and quantity falls
19
According to economists, _______ makes everyone better off.
Trade
Housing
Medicine
Money
20
Which point demonstrates an impossible combination due to available technology & resources?
Point above the curve (y)
Point on the curve (a)
Point beneath the curve (x)
None of the above
21
Goods commonly used in place of one another are:
capital goods
substitute goods
consumer goods
complentary goods
22
Which point, along the PPF, demonstrates inefficiency?
Point beneath the curve (x)
Point above the curve (y)
None of the above
Point on the curve (a)
23
These types of statements about how things actually are, rather than how they should be:
Normative
Realistic
Positive
Negative
24
Which of the following is NOT a factor of production?
<p>entrepreneurship </p>
loans
labor
land
25
Which of the following characteristic(s) supports a good or service with elastic supply?
Long Run
Resources are easy to obtain
All of the above
Can be created quickly
26
The study of the economy in parts refers to:
The Dismal Science
Microeconomics
Economics
Macroeconomics
27
What is the business cycle?
Predictable changes in the economy
Regular fluctuations in economic activity
Irregular fluctuations in economic activity
relationship between money and inflation
28
Societies are forced to make choices due to this economic condition?
Productivity
Efficiency
Fluctuations
Scarcity
29
All of the following are part of the business cycle except:
Peak
Wave
Expansion
Recession
30
What is the key to increasing a nation's standard of living?
the business cycle
Growth rate of the money supply
Productivity
Better education system
31
What is the shape of the curve which represents increasing opportunity costs?
Bowed In
Concave
Convex
Linear
32
Those who evaluate choices by comparing the MC and MB are considered:
Careful Planners
Irrational
Organized
Rational
33
The study of the economy as a whole refers to:
The Dismal Science
Microeconomics
Macroeconomics
Economics
34
Someone has _________ when they can produce a good with the lowest opportunity cost.
Comparative Advantage
Free Trade
Absolute Advantage
a Capitalist economy
35
Which of the following is a concept of microeconomics?
Unemployment
Effect of price changes on one industry
Standard of Living
Inflation
36
The value of the next best "thing" given up is called:
A choice
An opportunity cost
A sunk cost
A sacrifice
37
Which of the following equations represents Total Revenue?
Profit-Cost
Cost-Price
Profit-Price
Price X Quantity
38
What obstacles do Economists face, but other scientists do not?
Scientific Method cannot be used in economics
Difficult to formulate theories in economics
Economics cannot be objective
Difficult ro perform experiements in economics
39
Which of the following is a result of both a decrease in demand and supply?
price is ambiguous and quantity falls
price is ambiguous and quantity rises
price rises and quantity is ambiguous
price and quantity both fall
40
Which of the following characteristics support a good or service with elastic demand?
Long Run
Luxury
All of the Above
Large Portion of Income
41
Which of the following is a result of a decrease in supply and increase in demand?
price is ambiguous and quantity falls
price and quantity both fall
price rises and quantity is ambiguous
price falls and quantity is ambiguous
42
Your purchasing power decreases when this occurs:
Deflation
Increase in available credit
Inflation
Economic Growth
43
In economics, capital refers to:
Man made goods
Money
Finance
Loans
44
If you are making decisions "on the margin," an economist would say that you are:
Uneducated
Gambling
Rational
Investing
45
Which of the following is not a characteristic of the production possibilities frontier?
amount of resources doesn't change
available technology remains the same
comparative advantage
two goods
46
Society faces a tradeoff between inflation and unemployment in the:
Long Run
Business cycle
Short Run
Economy
47
Which of the following equations represents elastic demand?
Es=1
Es=0
Es<1
Es>1
48
An increase in quantity demanded is represented by:
a movement upward along the demand curve
a rightward shift of the demand curve
a movement downward along the demand curve
a leftward shift of the demand curve
49
The following term is often defined as "an increase in the overall price level."
Capital
Inflation
Deflation
Finance
50
Based on the provided graph: what has happened?
None of the above
Increase in technology and resources
Decrease in technology and resources
Increase in technology and resources for only computers
51
Income and normal goods have a(n) ____________ relationship.
Good
Direct
Inferior
Inverse
52
Describe the movement along the PF that represents a free lunch: a movement _________________
to a point outside the PPF
from a point inside the PPF towards a point on the PPF
to a point inside the PPF
Between two points on the curve
53
What happens to the equilibrium price and quantity when demand shifts to the left?
price falls and quantity rises
price and quantity both rise
price rises and quantity falls
price and quantity both fall
54
The "Father of Modern Economics" is:
Adam Smith
John Maynard Keynes
Alfred Marshall
Karl Marx
55
Someone has _________ when they can produce a good faster & better than anyone else.
Comparative Advantage
Free Trade
Absolute Advantage
a Capitalist economy
56
A decrease in supply is represented by:
<p>a rightward shift of the curve</p>
a downward movement along the curve
an upward movement along the curve
a leftward shift of the curve
57
Which point, along the PPF, demonstrates efficiency?
Point on the curve (a)
Point beneath the curve (x)
Point above the curve (y)
None of the above
58
Protectionism can lead to:
Long-run growth
Large gains for some producers
Greater efficiency
Large gains for consumers
59
What is the opportunity cost for moving from pt B to pt C?
1/10
10
2/5
5/2
60
which of the following is a result of an increase in both supply and demand?
price rises and quantity falls
price falls and quantity rises
price is abiguous and quantity falls
price is ambiguous and quantity rises
