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AP Macroeconomics Unit 1 review Flashcards | StudBud
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AP Macroeconomics Unit 1 review
AP Macroeconomics Unit 1 review
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1
Who has an absolute advantage in Pies and who has an absolute advantage in Cakes?
Kush has an AA in Pies and William AA in Cakes.
Shiv has an AAPies and David has an absolute advantage in Cakes.
Shiv has an absolute advantage in Pies and Cakes
Kush has an absolute advantage in Pies and Cakes
2
Assume All Pepsi Products are on a Massive Sale, what will happen to the demand for IPhones
Increase in Demand
Decrease in Demand
Increase in Quantity Demanded
No Effect
3
What happens when the price rises above the equilibrium price?
This causes a priceceiling
This causes the market to crash
This cuases a surplus
This causes a shortage
4
As Atlantis produces more potatoes, what is true about the opportunity cost of producing potatoes?
It stays the same
It continually decreases
It continually increases
It increases and then decrease
5
Economics is a social science that
is primarily concerned with how resources are used
relies soley on the scientific method for analysis
is purely normative
is primarily concerned with money
6
Land refers to
real estate
all productive resources
all natural resources
farmland only
7
What would Country B trade 1 truck for?
2 cars
4/3 cars
6 cars
4 cars
8
At what terms of trade would Kush trade 1 cake for?
1 cake for 4 Pies
1 cake for 3 Pies
1 cake for 1 Pie
1 cake for 1.5 Pies
9
If Nikhil's income drops what will happen to his demand for Iphones (Normal Good)
I am lost and need help
Demand will rise
Demand is not affected
Demand will fall
10
India can produce 30 Cars or 20 planes and America can produce 20 Cars or 10 Planes which of the following is true?
Indian should produce both cars and planes
America should specialize in the production of cars
Indian should specialie in the production of cars
trading 1 car for 3 planes would benefit both countries
11
In a command economy
competition help answer the fundamental economic questions
laws are set up to answer the fundamental economic questions.
central government dictatethe answers to the fundamental economic questions
the market dictates the answers to the fundamental economic questions.
12
Who has an absolute advantage in the prodcution of trucks?
Neither
County A
Country B
13
Points outside the PPC are possible to achieve if all resources are allocated efficiently
True
False
14
Arham drops the price for his calzones at his shop what will happen to demand for calzones.
Demnad is not effected and QD will fall.
Price will drop causing increase in Demand
None of the above
Demand will fall.
15
What is not a shifter for demand?
Taste/prefrences
Government subsidies/taxes
Price of Substitutes/Complements
Number of consumers
16
What does point C represent?
Inefficient use of resources
Productivity is at the max
Efficient use of resources
Impossible to achieve with the current resources
17
Which of the following points will most lead to future economic growth?
3
1
4
2
18
What will a price ceiling cause?
Shift in demand and supply
Surplus
Equilibrium
Shortage
19
What is an example of human capital
Doctors
I don't know
Elon musk
Machines
20
India can produce 30 Cars or 20 planes and America can produce 20 Cars or 10 Planes which of the following is true?
India cannot benefgit from trading with America
For India the opporturnity cost of producing one palne is 1.5 cars.
America has an absolute advantage in the production of Planes
India has a comparative advantage in the production of planes
21
Scarcity is the idea that we have unlimited wants and needs but unlimited resources.
False
True
22
Nikhil makes 3 reviews in one day or 1 test and Mahir can make 2 reviews or 2 tests in one day. what is the TOT?
Nikhil trades one review for 1/2 of a test
Mahir trades one review for 1/2 a test
Nikhil trades one review for 2 Tests from Nikhil.
Mahir trades one review for 2 tests.
23
The law of supply states that the relationship between price and quantity supplied is??
Indirect
Negative
Unclear
Positive
24
Over time, an increase in human knowledge and technology will
none of the above
shift the production possibilities curve inward
cause an economy to operate inside its production possibilities curve.
shift the production possibilities curve outward.
25
Who has a comparative advantage in making Pies?
Kush
Shiv
26
The benefit (or satisfaction) that an individual expects to derive from an activity is called
opportunity cost
marginal cost
utility
scarcity
27
Is it true that if the price were to increase that demand will decrease?
True
False
28
Who has the comparative advantage in producing wheat?
Neither
Both
India
China
29
Atlantis can produce which of the following combinations of output?
Pounds of Potatoes: 400 || Pounds of fish: 600
Pounds of Potatoes: 1000 || Pounds of fish: 675
Pounds of Potatoes: 200 || Pounds of fish: 675
Pounds of Potatoes: 600 || Pounds of fish: 600
30
During the recession phase of a business cycle, which of the following is likely to increase?
the unemployment rate
the labor force
economic growth rates
the price level
31
Which of the following is a normative statement?
Calzones are the best food in the world.
An increase in minimum wage will lead to employers employing less people.
If the price rises then the quantity demanded will fall.
Mr. Michaels teaches AP Macroeconomics.
32
What is the opportunity cost of moving from combination D to combination C?
Not given enough information
30 Cans of Cola
10 chocolate bars
There is no cost
33
If the two countries specialize and trade, which of the choices below describes the countries' imports?
India imports wheat and potatoes
China imports wheat and potatoes
China imports wheat and India imports potatoes.
India imports wheat and China imports potatoes.
34
if, Atlantis is efficient in production what is the opportunity cost of increasing the output of potatoes 600to800 lbs?
300 pounds of fish
200 pounds of fish
200 pounds of turkey
419 pounds of fish
35
In a competitive market what happens to the price when there is a shortage or surplus?
None of the above
The price will eventually return to its origirnal equilibrium price
Government interaction is needed to return to equilibrium price
36
Which of the following will have a constant opportunity cost?
Calzones and Pizza
Airplanes and Cake
Pizza and robots
Bikes and Paper
37
What is a possible price India is willing to pay to buy potatoes from China?
2 Wheat
1 Wheat
.7 wheat
.5 wheat
38
Economists use the term "capital" to mean
the center of the econmy
plant and equipment
moeny
a major idea
39
Which of the following is a basic source of economic growth in the production possibilities model?
Trade-Offs
Opportunity Cost
Improved Technology
Specialization
40
Which of the following is not a phase of the business cycle?
Expansion
Aggregate growth
Peak
Recession
41
Which of the following will decrease the supply of pizza?
The number of consumers increases
The number of producers increases
There is an infection in the milk used to produce cheese
The taste for pizza significantly increases
42
What is the invisible hand?
The uninteded consequences of producers increasing prices
The government interfering with the market.
A person higher up who controls the market
individual self-interest and freedoms of P and C benefit the economy
43
What will happen if the price of gas per gallon were to drop to $1.00?
There would be a surplus of 300 gallons
Demand rises
There would be a shortage of 300 gallons
There would be a shortage of 200 gallons
44
President Jayson gives subsidies to producers who produce chicken. What will happen to the equilibrium P&Q?
Q will rise and P will fall
Nothing changes
Q will fall and P will fall
Q will fall and P will rise
45
Who has a comparative advantage in producing Trucks?
Country B
Neither
Country A
46
Which of the following combinations of output is efficient?
Pounds of Potatoes: 300 || Pounds of fish: 400
Pounds of Potatoes: 400 || Pounds of fish: 500
Pounds of Potatoes: 0 || Pounds of fish: 0
Pounds of Potatoes: 1000 || Pounds of fish: 0
47
The price of the wood used to make cricket bats rise what will happen to S and D for cricket bats?
Supply will rise
Demand will fall
Supply will fall
Demand will rise
48
When an economy is operating between the business cycle trough and the business cycle peak, this isconsidered to be:
A trough
None of the above
A recession
An expansion
49
Macroeconomics studies
money
government and its laws that affect commerce
individuals and their resource use
the resource use of the entire nation
50
Which of the following provides a long-term increase in the productive capacity of an economy?
economic growth
recovery
an expansion
a recession
