If a nation does not have an absolute advantage in producing anything, it

could have a comparative advantage in something

Which of the following are the best examples of substitute goods?

Windows or Mac personal computers

Which of the following will change a nation's comparative advantage?

a technological advance in producing manufactured goods

What can be said about point D in the PPF?

Its attainable but the economy isnt working a full potential

When a PPF is linear it shows

resources are shiftable from the prod of 1 good to another

A circular flow diagram is a model that

explains how the economy is organized

International trade trends to occur whenever

both nations can benefit from trade

Which occurrence could cause the demand curve to shift to the right?

decrease in the price of a substitute

B represents which of the following

Possible effects of a price floor

A popular model used to illustrate opportunity cost is

the production possibilities frontier

The production possibilities frontier is a map or graph which

shows various combinations of output the economy can produce

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AP Econ - Unit 1 Review

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Unit 1 Review for AP Economics

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Questions 25

Answers

1
If a nation does not have an absolute advantage in producing anything, it
will export raw materials and import finished products
will try to get along without trade
has no comparative advantage either
could have a comparative advantage in something
2
Revenue received by firms from sales which is not used to pay for factors of production is
interest
wages
rent
profit
3
Which of the following are the best examples of substitute goods?
Windows or Mac personal computers
milk and cookies
hot dogs and mustard
personal computers and computer software programs
4
Which of the following will change a nation's comparative advantage?
a doubling of wages
quotas on imports
a change in consumers' preference for imported goods
a technological advance in producing manufactured goods
5
Which of the following would NOT be considered a factor of production?
Labor
Money
Capital
Land
6
Letter A represents which of the following?
Shortage
Perfect Equilibrium
Possible effects of a price floor
Surplus
7
The discovery of new gold in SA will ___ the price of gold and ___ the quantity of gold traded.
raise: lower
lower: raise
raise:raise
lower: lower
8
Which of the following could cause an increase or decrease in demand?
Number of Suppliers
Consumer Income
Resources
Price
9
What can cause an increase in supply?
Number of sellers
Price only
Increase in taxes
Consumer income
10
What can be said about point D in the PPF?
Its attainable but the economy isnt working a full potential
I am going to fail this test
To produce at D we will need more technology
It is not attainable
11
Which of the following sets of goods are most likely to be complementary goods?
baseballs and baseball gloves
automobiles and computers
football tickets and baseball tickets
shoes and pizza
12
Another term for factors of production is
goods
services
inputs
outputs
13
When a PPF is linear it shows
an example of increasing opportunity cost
resources are shiftable from the prod of 1 good to another
a truer picture of real life than a bowed out PPF
all of the above
14
A circular flow diagram is a model that
explains how banks circulate money in the economy
explains how the economy is organized
shows the flow of traffic in an economic region
illustrates cost-benefit analysis
15
Another name for goods and services produced by firms is
factors of production
inputs
output
resources
16
International trade trends to occur whenever
one nation can profit from trade at the expense of the other
one nation is self sufficient and making surplus goods
both nations can benefit from trade
labor is cheaper in one country than in another
17
Which occurrence could cause the demand curve to shift to the right?
decrease in the price of raw materials
decrease in the price of a substitute
increase in the price of a complement
increase in the price of a substitute
18
The curved shape of the PPF can be explained by
economic growth
scarcity
constant cost of production
increasing cost of production
19
What causes a change in quantity supplied?
Amount of government intervention
Number of Sellers
Price only
Price of Resources
20
Which of the following points is unattainable on the given PPF?
C
B
D
A
21
B represents which of the following
Possible effects of a price ceiling
Perfect equilibrium
Shortage
Possible effects of a price floor
22
A popular model used to illustrate opportunity cost is
entrepreneurship
the production possibilities frontier
the paradox of value
the factors of production
23
If demand moves from D1 to D2, what happens to the equilibrium price?
It stays the same
It only moves if supply shifts as well
It decreases
It increases
24
Consider a market in equilibrium. Firms who advertise in the market are attempting to shift the
supply curve to the right
supply curve to the left
demand curve to the right
demand curve to the left
25
The production possibilities frontier is a map or graph which
shows the frontier beyond which agriculture is unprofitable
shows various combinations of output the economy can produce
shows areas of the world in which production is possible
shows amounts of combinations of resources that can be used

AP Econ - Unit 1 Review Flashcards | StudBud