AP Macroeconomics Unit 1 - Supply and Demand

Question 1

When supply increases, demand also increases

Accepted Answer

False

Question 2

What is one determinant of demand

Accepted Answer

# of buyers

Question 3

A shift of the curve to the right shows...

Accepted Answer

An increase in supply

Question 4

a good where the demand decreases if income increases and demand increases if income decreases

Accepted Answer

inferior good

Question 5

Which of these situations best illustrates market equilibrium?

Accepted Answer

The amount of soap made matches the amount of soap that people want to buy.

Question 6

what causes this shift in supply?

Accepted Answer

Number of sellers increases

Question 7

If demand decreases while supply decreases, what happens to Eq P and Eq Q?

Accepted Answer

Eq Q decreases and Eq P cannot be determined

Question 8

If Demand Increases at the same time that Supply increases then

Accepted Answer

Eq Q increases and Eq P cannot be determined

Question 9

A leftward shift of a product supply curve depends upon:

Accepted Answer

some firms leaving an industry

Question 10

If the market price is above the equilibrium, what does that mean?

Accepted Answer

There is an excess supply

Question 11

Which country has a comparative advantage in bikes?

Accepted Answer

Country B

Question 12

A decrease in supply is represented by:

Accepted Answer

a leftward shift of the curve

Question 13

If demand increases while supply increases, what happens to Eq P and Eq Q?

Accepted Answer

Eq Q increases and Eq P cannot be determined

Question 14

What is the meaning of supply?

Accepted Answer

The amount of goods producers are willing to make and sell.

Question 15

Which country has a comparative advantage in cars?

Accepted Answer

A

Question 16

Which country has a comparative advantage in trucks?

Accepted Answer

B

Question 17

According to the law of demand

Accepted Answer

As prices increase, Qd decreases

Question 18

Which image properly shows the market change for syrup if the price of pancakes increases?

Accepted Answer

Lower right

Question 19

What happens to the equilibrium price and quantity when demand shifts to the left?

Accepted Answer

price and quantity both fall

Question 20

Which of the following would NOT cause Demand to increase?

Accepted Answer

Decrease in the price of a substitute good

Question 21

Which of these factors may cause a shift in the demand curve? (Read all choices!)

Accepted Answer

All of the above

Question 22

If demand decreases while supply increases, what happens to Eq P and Eq Q?

Accepted Answer

Eq P decreases and Eq Q cannot be determined

Question 23

a good where the demand increases if income increases and demand decreases if income decreases

Accepted Answer

normal good

Question 24

If demand decreases while supply decreases, what happens to equilibrium price and quantity?

Accepted Answer

Eq Q will decrease while we don't know what happens to Eq P

Question 25

Equilibrium price is

Accepted Answer

when quantity supplied equals quantity demanded

Question 26

If average income decreases when new tech makes it easier to make cereal, what happens to the market for generic cereal?

Accepted Answer

Eq Q will increase while we don't know what happens to Eq P

Question 27

If "demand shifts right," demand is...

Accepted Answer

increasing

Question 28

If the price of Coke increases at the same time that the price of sugar increases, what happens to the market for Pepsi?

Accepted Answer

Eq P will increase while we don't know what happens to Eq Q

Question 29

What happens to Eq of Big Macs (inferior good) if the unemployment rate and the minimum wage in the US both increase?

Accepted Answer

Eq P increases and Eq Q cannot be determined

Question 30

As quantity supplied increases

Accepted Answer

Price decreases

Question 31

If the FDA says eating bacon increases your risk of a heart attack while the number of pig farms in the US increases...

Accepted Answer

Eq P will decrease while we don't know what happens to Eq Q

Question 32

Comparative advantage : ______

Accepted Answer

lower opportunity costs

Question 33

Which image properly shows the market change for Apple if the technology used to make an iPhone improves?

Accepted Answer

Upper left

Question 34

At which price would a shortage occur?

Accepted Answer

$4

Question 35

What is calling the demand to change like the image shows?

Accepted Answer

Number of buyers is decreasing

Question 36

At which price would a surplus occur?

Accepted Answer

$7

Question 37

Which image properly shows the market change if a company needed to pay its workers more?

Accepted Answer

Upper right

Question 38

Quantity demanded decreases when

Accepted Answer

Price increases

Question 39

Excess supply is best described as

Accepted Answer

a surplus

Question 40

An increase in the supply of coffee could be caused by

Accepted Answer

a decrease in the cost of labor used to produce coffee

Question 41

Which image properly shows the market change for cream if the price of coffee increases?

Accepted Answer

Lower right

Question 42

A leftward shift of supply will:

Accepted Answer

decrease equilibrium quantity.

Question 43

If there is joint demand for olives and mushrooms, then olives and mushrooms are

Accepted Answer

complements

Question 44

If the supply curve shifts right, equilibrium price will...

Accepted Answer

Decrease

Question 45

How does Comparative advantage exist?

Accepted Answer

when nation can produce a good at a lower opportuinity cost

Question 46

What would cause this shift in Demand?

Accepted Answer

Price of related goods

Question 47

What is the equilibrium price and quantity in this market?

Accepted Answer

P = $5 and Q = 5

Question 48

If the doctors announced drinking orange juice helps increase resistant to the flu right as a hurricane hit Florida...

Accepted Answer

Eq P increases and Eq Q cannot be determined

AP Macroeconomics Unit 1 - Supply and Demand

Questions 48

AP Macroeconomics Unit 1 - Supply and Demand

Questions 48