AP Macroeconomic Unit 1 Review

Who decides what to produce in a command economy?

Is the an input or output problem?

Which one of these is not a factor of production?

Does this graph show constant or increasing opportunity cost

The price of flour goes up, how is the supply graph of bread affected?

If there is a price floor at $20, what is the market price of the good?

What is the form of payment for labor?

If the price is $2 per gallon, is there a shortage or a surplus?

What is the elasticity of the good?

Identify the type of economy. Supply/Demand and prices are used in this type of system.

Which country has the absolute advantage in Salmon production?

If an economy is at full employment, where on the production possibles curve would they be producing?

If there is a price ceiling at $20, what is the market price of the good?

The price of tennis racket decreases, how would the demand graph for tennis balls be affected?

What is the elasticity of the good?

Which of the following goods would have a relativly higher price elasticity?

The price of Pepsi decreases, how is the demand graph for Coke affected?

What is the elasticity of the good?

What could cause an economy to produce at point F

Who are the buyers in the factor market?