What is positive economics and how does it contrast normative economics?

Pos. economics is based on facts; norm. is based on opinions

How is absolute advantage measured and recorded?

number of the same product made in the same amount of time

Which of the following correctly represents the concept of opportunity cost?

Producing one product over the other due to costs

What are the 4 basic resources?

Capital,Land,Labor,Entrepreneurship

According to the theories of comparative advantage; countries gain from trade because:

World output rises when countries specialize in one trade

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AP Economics: Basic Economic Concepts

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Questions 18

Answers

1
Which of the following is does not cause a shift in demand?
Change in income
Tastes
Expectations of Buyers
Increase of supply
2
Answer the following question
A
B
D
C
3
Refer to the following
9
80
70
40
4
Answer the following:
B
A
C
D
5
What is positive economics and how does it contrast normative economics?
Pos. economics is based on politics; norm. is based on study
Pos. economics is based on religion; norm. is based on facts
Pos. economics is based on facts; norm. is based on opinions
Pos. economics is based on opinions; norm. is based on facts
6
How is absolute advantage measured and recorded?
number of different product made in different amount of time
number of the same product made in different amounts of time
number of the same product made in the same amount of time
number of different products made in the same amount of time
7
Answer the following question
D
A
C
B
8
Answer the following
B
D
A
C
9
Answer the following:
B
A
D
C
10
Answer the following:
A
B
C
D
11
Which of the following correctly represents the concept of opportunity cost?
Multi-tasking in order to improve efficiency
Making two products at the same time
Producing one product over the other due to costs
Outsourcing jobs to India
12
The economy is at point B in the graph, which of the following can bring the economy to point Y
Technological advances
Greater production of cars
Greater production of Refrigerators
Changes in Government spending
13
What are the 4 basic resources?
Capital,Land,Labor,Entrepreneurship
Capital,Natural resources,Entrepreneurship, Land
Capital,Labor,Tools,Land
Capital,Labor,Land,workers
14
According to the theories of comparative advantage; countries gain from trade because:
Every country has absolute advantage in one field of trade
All firms can take advantage of cheap labor
Output per worker increases.
World output rises when countries specialize in one trade
15
A straight line on the PPC represents?
increasing opportunity cost
constant opportunity cost
decreasing opportunity cost?
there is no straight lines in the ppc
16
Who has absolute advantage in peaches?
Both have absolute advantage
Neither has absolute advantage
Country A
Country B
17
Answer the following
B
A
D
C
18
Answer the following question
Hans has comparative advantage of Both
Cheese: Hans; Bread: Chris
Cheese: Chris; Bread: Hans
Chris has comparative advantage of Both

AP Economics: Basic Economic Concepts Flashcards | StudBud