Assume demand for apples is downward sloping. If the price falls which of the following occur

Larger quantity of apples demanded

The crucial problem of economics is

Allocating scarce resources to satisfy unlimited wants

An increase in the price of gasoline will cause the demand curve for tires to do what

To the left, because they are complements

Which of the following cause the PPC to shift out

An increase in capital equipment

Which of the following will not cause the demand curve for shoes to shift

A decrease in the price of shoes

To be considered scarce an economic resource must be

Limited and desirable, but not free

Which of the following will not change the demand for oranges

A change in the price of oranges

According to the theory of comparative advantage, a good should be produced where

Its opportunity costs are least

Which of the following would cause a leftward shift of the PPC

A decrease in working-age population

Which of the following is true if the PPC is a curved line concave to the origin

As more of one good is produce more of the other given up

How does a straight PPC differ from a concave PPC

It has constant opportunity cost

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AP Macro Unit 1 Review

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Basics of supply and demand

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Questions 18

Answers

1
If demand for a good decreases, what will happen to price and quantity
Both increase
Both decrease
Price down, quantity up
Price up, quantity down
2
Assume demand for apples is downward sloping. If the price falls which of the following occur
Demand for apples will decrease
Larger quantity of apples demanded
Demand for apples will increas
Smaller quantity of apples is demanded
3
The crucial problem of economics is
Allocating scarce resources to satisfy unlimited wants
Providing social goods and services
Developing a price mechanism that reflects relative scarcity
Establishing a fair tax system
4
An increase in the price of gasoline will cause the demand curve for tires to do what
Shift left, because they are substitutes
To the right, because they are substitutes
To the right because they are complements
To the left, because they are complements
5
Which of the following goods can be considered scarce
All 3
Education
Gold
Time
6
Which of the following cause the PPC to shift out
An increase in inflation
A decrease in natural resources
An increase in unemployment
An increase in capital equipment
7
Which of the following will not cause the demand curve for shoes to shift
A change in tastes for shoes
Widespread advertising campaign for shoes
Increase in money income of shoe consumers
A decrease in the price of shoes
8
To be considered scarce an economic resource must be
Limited, free and desirable
Limited, but not free or desirable
Limited and desirable, but not free
Limited and free, but not desirable
9
Which of the following will not change the demand for oranges
A change in the price of grapefruit
Change in consumers' incomes
An expectation that the price of oranges will change soon
A change in the price of oranges
10
When one decision is made, the next best alternative not selected is called
Scarcity
Opportunity cost
Economic resource
Comparative disadvantage
11
If supply for a good increases, what will happen to price and quantity
Price down, quantity up
Price up, quantity down
Both decrease
Both increase
12
According to the theory of comparative advantage, a good should be produced where
Its opportunity costs are least
Its explicit costs are least
Production causes the greatest increase in employment
The cost of real resources used is least
13
Which of the following would cause a leftward shift of the PPC
An increase in inflation
A decrease in working-age population
An increase in unemployment
A decrease in consumer demand
14
The law of increasing opportunity cost is reflected in the shape of the
straight PPC
PPC concave to the origin
PPC convex to the origin
horizontal PPC
15
Which of the following is true if the PPC is a curved line concave to the origin
The prices of the two products are the same
As more of one good is produce more of the other given up
Resources are perfectly substitutable between the 2 goods
Both products are equally capable of satisfying wants
16
How does a straight PPC differ from a concave PPC
There is no difference
It has increasing opportunity cost
It has constant opportunity cost
It has decreasing opportunity cost
17
If demand for a good increases, what will happen to price and quantity
Both increase
Both decrease
Price up, quantity down
Price down, quantity up
18
If supply for a good decreases, what will happen to price and quantity
Price down, quantity up
Price up, quantity down
Both increase
Both decrease

AP Macro Unit 1 Review Flashcards | StudBud