Which of the following is a Positive economic statement?

The Federal minimum wage & Wisconsin's state minimum wage are the same

An economic agent decides to continue producing or consuming something until the _____________ equals the ___________.

marginal cost; marginal benefit

Which is NOT an assumption economists make?

Incentives have no impact on decision making

The basic concern of economics is:

The study of choices created by scarcity

An economy has a comparative advantage in the production of a good when:

It has a lower opportunity cost of production

A PPF that shifts out at one end but not the other is a result of _____________.

resource growth in the production of one good but not the other

Which of the following statements is true based on the table below?

In Japan, the opportunity cost of 1 computer = 2 cars

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Duplicate of AP Micro Unit 1 Review

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AP Micro Unit 1 Review & Random Trivia

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Questions 22

Answers

1
Which one of the following is NOT one of the major factors of production?
Land
Time
Capital
Labor
2
The highest price a country is willing to pay to import a good from another country is the __________ of producing it.
economic cost
absolute cost
opportunity cost
accounting cost
3
It could be said that the country that will import a good is the country that has the ______________ for the good
comparative advantage
comparative disadvantage
absolute disadvantage
absolute advantage
4
A concave production possibilities curve represents:
Constant opportunity costs
An economy with a command system
An economy without scarcity
Increasing opportunity costs
5
What you give up when you make a choice is referred to as:
Incentives
Opportunity Cost
Scarcity
Microeconomics
6
What is the best-selling album of all time? (worldwide)
Their Greatest Hits (The Eagles)
Dark Side of the Moon (Pink Floyd)
Thriller (Michael Jackson)
Saturday Night Fever (Bee Gees)
7
Which of the following is a Positive economic statement?
Economics is da BOMB!!
Placing more tariffs on China is not a good idea
The Federal minimum wage ought to be raised at least $1.00 per hour
The Federal minimum wage & Wisconsin's state minimum wage are the same
8
Which of the following BEST illustrates opportunity cost on a PPF?
the shift outward of the PPF
the slope
the inefficient points of production
the shift inward of the PPF
9
Who would be considered the "Father of Capitalism?"
Adam Smith
Donald Trump
George Washington
Steven Jobs
10
An economic agent decides to continue producing or consuming something until the _____________ equals the ___________.
total cost; total benefit
marginal cost; marginal benefit
marginal substitution; marginal complement
marginal choice; marginal outcome
11
Name the movie...
Happy Gilmore
Caddyshack
Big Daddy
Billy Madison
12
The United States economy is best characterized as:
A traditional economic system
A command economic system
A pure market system
A mixed economic system
13
Which is NOT an assumption economists make?
"How much?" is a decision at the margin
The real cost of something is what you give up to get it
Incentives have no impact on decision making
Resources are scarce
14
Marginal analysis (weighing the costs & benefits of an alternative) is best used for which one of the following scenario
Should I buy a new or used car?
Should I choose Coke or Pepsi?
Should I lock my car doors?
Should I sleep another hour?
15
Which of the following is the BEST example of capital?
glass
a printing press
copper & tin
air & water
16
The basic concern of economics is:
The study of choices created by scarcity
How money is created
How society should use its unlimited resources
Whether supply or demand is more important
17
Points along the production possibilities curve represent:
An unattainable level of consumption
An inefficient use of resources
An economy free of scarcity
An efficient use of resources
18
Which of the following statements is true based on the table below?
In the USA, the opportunity cost of 1 car = 4 computers
The USA should make cars
In the USA, the opportunity cost of 1 computer = 5/4 cars
The USA has a comparative advantage in both goods
19
An economy has a comparative advantage in the production of a good when:
It has a lower opportunity cost of production
Its labor force is larger
It has more factories
It can produce more of that good
20
A PPF that shifts out at one end but not the other is a result of _____________.
resource growth in the production of one good but not the other
resource growth in the production of some good not represented on the graph
resource growth in the production of both goods
this never happens as economic growth is always evenly spread
21
Which of the following statements is true based on the table below?
Japan has an absolute advantage in cars
In Japan, the opportunity cost of 1 car = 2 computers
The US has an absolute advantage in computers
In Japan, the opportunity cost of 1 computer = 2 cars
22
Which economic system is characterized by private ownership of property and economic growth?
Market
Socialistic
Command
Traditional

Duplicate of AP Micro Unit 1 Review Flashcards | StudBud