The supply curve slopes up because:

Businesses will supply more of a good if prices are higher

If people in Spain increase their demand for US exports, what will happen in the Eurozone?:

Supply of euros will go down, demand for US$ will go up

Long run economic growth is when real GDP increases:

from peak to peak of the business cycle

Which of the following mega-celebrities didn't attend Central

Charles Lindberg (First person to fly over the Atlantic)

A constant cost PPC would be:

A straight line sloping downward

If a country's current and capital add up to to $1 billion, the country's currency will:

increase vs. foreign currencies

If price increases, supply _____, barring any other changes

Stays the same, however quantity supplied increases

Benefit all countries who get a better return than their OC

Which of the following is the main reason trade barriers are bad?

They force consumers to pay more for goods and services

If consumers expect the price of a good to decrease later, supply will ______ now

Stay the same, but quantity supplied will decrease

The demand curve slopes down because:

If the price of a good goes up, people will buy a substitute

Country A can make 40 watches. Country B can make 20 watches. Country A has a __ over Country B

Absolute advantage. Need more info to determine Comp. Adv.

Why do prices always go to equilibrium in a free market?

Surpluses drive prices down; shortages bring prices up

We say that demand decreases when:

People buy a lower quantity of a good at all price levels

What is the opportunity cost of playing frisbee with your friends?

The next best thing I could be doing besides playing frisbee

Limits the amount of a good imported into a country

A tariff is a trade barrier that:

Results in tax income for the government

Which of the following would not affect the exchange rate between County A and Country B

Country A and Country B both having a 1% interest rate hike

A price ceiling ($1) below the equilibrium price of Pringles ($2) will lead to:

There will be a shortage of Pringles

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AP Macro Review #1

40 termsStudBud Administration319 plays

An #Econ Quiz on #specialization, #opportunitycost, and #forex

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Questions 40

Answers

1
When a country institutes a tariff, the equilibrium price ___ and the equilibrium quantity ___
increases, increases
decreases, decreases
increases, decreases
decreases, increases
2
Goods A & B are substitutes in production. If the price of A goes up, the supply of B:
Isn't changed in any way
Decreases
Increases
Stays the same, but quantity supplied decreases
3
The supply curve slopes up because:
Businesses will supply more of a good if prices are higher
It becomes cheaper to produce each additional unit
Producers don't need to charge as much for each extra unit
Customers buy more of something when prices are high
4
If people in Spain increase their demand for US exports, what will happen in the Eurozone?:
Supply of euros will go up, demand for US$ will go up
Supply of euros will go down, demand for US$ will go down
Supply of euros will go down, demand for US$ will go up
Supply of euros will go up, demand for US$ will go down
5
What is Jents's son's name?
William
Kirby
Steve Jr.
Jents the 2nd
6
If consumers expect the price of a good to increase later, demand will ______ now
Decrease
Stay the same, but quantity supplied will decrease
Increase
Stay the same, but quantity supplied will increase
7
Long run economic growth is when real GDP increases:
at an increasing rate
from peak to trough of the business cycle
from peak to peak of the business cycle
between any two points of the business cycle
8
Which of the following mega-celebrities didn't attend Central
Richard M Schulze (Founder of Best Buy)
Charles Schultz (creator of Snoopy)
Amelia Earhart (First woman pilot to cross the Atlantic)
Charles Lindberg (First person to fly over the Atlantic)
9
A constant cost PPC would be:
A straight line sloping downward
Bowed inward (concave)
Bowed outward (convex)
A straight line sloping upward
10
Apple pies and Apple sauce are __________ in production.
Delicious
Substitutes
Costs
Complements
11
China buys $500 million worth of IT services from the US, that counts as a ______ for China
Current Account Credit
Capital Account Debit
Capital Account Credit
Current Account Debit
12
If a country's current and capital add up to to $1 billion, the country's currency will:
increase vs. foreign currencies
Stay the same
Change in an unknown direction
decrease vs. foreign currencies
13
Volkswagen cars are found to be unsafe. All other things being equal, Demand for VW's will:
Stay the same, but quantity demanded will decrease
Decrease
Increase
Stay the same, but quantity demanded will increase
14
If price increases, supply _____, barring any other changes
Increases
Stays the same, however quantity supplied increases
Stays the same, however quantity supplied decreases
Decreases
15
If the the price of a good increases, demand will ______, barring any other changes
Stay the same
Increase
Change in an unknown direction
Decrease
16
Terms of Trade:
Benefit all countries who get a better return than their OC
Are zero sum and benefit one country more than another
Have no positive impact on anyone
Hurt all countries who get a better return than their OC
17
Which of the following is the main reason trade barriers are bad?
They provide the government with tax revenue
They are difficult to pronounce
They force consumers to pay more for goods and services
They protect domestic producers
18
If consumers expect the price of a good to decrease later, supply will ______ now
Increase
Decrease
Stay the same, but quantity supplied will increase
Stay the same, but quantity supplied will decrease
19
The demand curve slopes down because:
If prices go up, so do incomes, so people buy more
If the price of a good goes up, people will buy a substitute
People won’t buy something if it is expensive
The inverse relationship between price and quantity demanded
20
What street is directly to the north of Central's property?
Marshall
Concordia (Rondo)
Dunlap
Lexington
21
Country A can make 40 watches. Country B can make 20 watches. Country A has a __ over Country B
Neither a comparative or absolute advantage
Absolute advantage. Need more info to determine Comp. Adv.
Comparative and Absolute advantage
Comparative advantage, but not an absolute advantage
22
Why do prices always go to equilibrium in a free market?
Surpluses drive prices down; shortages bring prices up
If prices are too high, people buy more because of status
If prices are too low, businesses love the popularity
The government makes sure prices are at equilibrium
23
Supply and Demand intersect at:
Equality
A 45 degree angle
Equilibrium
That one point. You know that one, right?
24
We say that demand decreases when:
The price rises
The price falls
People buy a lower quantity of a good at all price levels
People buy a lower quantity of a good due to price increases
25
What is the opportunity cost of playing frisbee with your friends?
The next best thing I could be doing besides playing frisbee
There is no opportunity cost
The sum of everything I could do besides playing frisbee
It depends on the weather
26
Which of the following bands/artists didn't attend Central?
Heiruspecs
Atmosphere
E.D.I. Mean
Mint Condition
27
Goods A & B are complements. If the price of A goes up, the demand for B:
Decreases
Isn't changed in any way
Stays the same, but quantity demanded increases
Increases
28
Goods A & B are substitutes. If the price of A goes up, the demand for B:
Isn't changed in any way
Decreases
Stays the same, but quantity demanded increases
Increases
29
A quota:
Helps foreign producers
Helps consumers
Results in tax income for the government
Limits the amount of a good imported into a country
30
An increasing cost PPC would be:
Bowed inward (concave)
A straight line sloping upward
A straight line sloping downward
Bowed outward (convex)
31
Which combination of guns and butter is impossible?
180 Guns & 100 Butter
200 Guns & 1000 Butter
1000 Butter and 0 Guns
500 Butter & 150 Guns
32
Which one of these things has the highest top speed?
A Peregrine Falcon
A fighter jet
A cheetah
A motorcycle
33
What color is Lennie's (Jents's Daughter) hair?
Brown
Blonde
Black
Red
34
A tariff is a trade barrier that:
Results in a higher total quantity of a good being purchased
Is ultimately paid by foreign producers
Results in tax income for the government
Results in lower prices
35
Which Central alum is the one of two people to be drafted by three different pro sports?
Stacy Robinson
Steve Winfield
Bo Jackson
Dave Winfield
36
What tiny little rock did Jents used to live on?
Taipai
Saipan
Taiwan
Guam
37
Which of the following vehicles has Jents never owned?
Toyota Celica
Mercedes G 550
Nissan Maxima
Ducati ST2 944
38
Goods A & B are complements in production. If the price of A goes up, the supply of B:
Increases
Isn't changed in any way
Stays the same, but quantity supplied decreases
Decreases
39
Which of the following would not affect the exchange rate between County A and Country B
Interest Rates in Country A increasing relative to Country B
Country A and Country B both having a 1% interest rate hike
Country A demanding more of Country B's goods
Inflation in Country A increasing relative to Country B
40
A price ceiling ($1) below the equilibrium price of Pringles ($2) will lead to:
People who want to buy the good liking the new low price
No long-term changes. Prices will always go to equilibrium
There will be a shortage of Pringles
There will be a surplus of Pringles left over

AP Macro Review #1 Flashcards | StudBud