Exam (elaborations)
AP Macroeconomics (Study Guide) with complete solutions
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AP Macroeconomics (Study Guide) with complete solutions
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AP Macroeconomics (Study Guide) withcomplete solutions
A iiproduction iipossibility iicurve iishows: ii- iiAnswers ii-the iimaximum iiamount iiof iitwo
iidifferent iiitems iithat iia iisociety iican iiproduce iiusing iiall iiits iiland, iilabor, iiand iicapital
iiefficiently.
The iidifference iibetween iiallocative iiefficiency iiand iiproductive iiefficiency iiis ii- iiAnswers
ii-allocative iiefficiency iiis iiwhat iisociety iidesires iiand iiis iione iipoint iion iithe iippc, iiwhile
iiproductive iiis iiusing iiall iiyour iifactors iiof iiproduction iiefficiently iiand iiall iithe iipoints iion
iithe iippc.
A iipoint iiunderneath iithe iippc iiis iiinefficient iiand iiis iimost iilikely iishowing ii- iiAnswers ii-
high iiunemployment
If iiJoe iican iicook ii15 iihamburgers iior ii20 iihot iidogs iiin iian iihour iiand iiSam iican iimake ii20
iihamburgers iiand ii60 iihot iidogs iithen ii- iiAnswers ii-Sam iihas iithe iiabsolute iiadvantage iiin
iihamburgers iiand iihot iidogs iibecause iihe iican iimake iimore
Panama iican iimake ii20 iitrucks iior ii40 iicars iiin iia iiyear.
What iiis iiper iiunit iiopportunity iicost iifor iitrucks? ii- iiAnswers ii-1 iitruck iiequals ii2 iicars
When iishould iia iicountry iispecialize iiin iimaking iian iiitem? ii- iiAnswers ii-when iithe
iicountry iihas iithe iicomparative iiadvantage iiand iilowest iiopportunity iicost iifor iian iiitem.
United iistates iican iimake ii20 iitons iiof iicoffee iior ii60 iicomputers ii(in iithousands) iiin iia
iiyear
Honduras iican iimake ii40 iitons iiof iicoffee iior ii40 iicomputers ii(in iithousands) iiin iia iiyear
Who iihas iithe iicomparative iiadvantage iiin iicoffee? ii- iiAnswers ii-Honduras iibecause iiits
iiopportunity iicost iifor iicoffee iiis iilower.
Which iiof iithe iifollowing iidoes iiNOT iishift iidemand iicurve iifor iihot iidogs? ii- iiAnswers ii-a
iichange iiin iithe iiprice iiof iihot iidogs
A iidemand iicurve iiis iinormally ii- iiAnswers ii-downward iisloping
An iiinferior iigood iiis ii- iiAnswers ii-something iiyou iibuy iimore iiof iiwhen iiyour iiincome
iigoes iidown
, A iipositive iistatement iiis iione iithat: ii- iiAnswers ii-is iiobjective iiand iiis iibased iion iifacts.
The iiLaw iiof iiDemand iistates ii- iiAnswers ii-as iiprices iigo iiup iithe iiquantity iidemanded
iigoes iidown
Which iiof iithe iifollowing iiwould iicause iian iioutward iior iirightward iishift iiin iithe iiproduction
iipossibilities iicurve? ii- iiAnswers ii-An iiincrease iiin iicapital iiequipment
Economists iiare iilikely iito iidisagree iimost iioften iiover ii- iiAnswers ii-normative iistatements
Which iiof iithe iifollowing iiis iitrue iiof iithe iiconcept iiof iiincreasing iiopportunity iicosts? ii-
iiAnswers ii-it iisuggests iias iimore iiof iione iiis iiproduced, iisome iiof iithe iiother iimust iibe
iisacrificed iiat iian iiincreasing iirate.
Which iiof iithe iifollowing iiare iithe iiassumptions iifor iia iiproduction iipossibility iicurve? ii-
iiAnswers ii-Two iiitems iito iitrade, iifull iiemployment, iilimited iiresources, iifixed iitechnology
In iithe iicircular iiflow iidiagram iiof iia iimarket iieconomy, iiwhich iiof iithe iifollowing iiis iitrue? ii-
iiAnswers ii-Businesses iipay iiwages, iirent, iiinterest, iiand iiprofits iito iihouseholds iiin iireturn
iifor iiuse iiof iifactors iiof iiproduction
According iito iithe iitheory iiof iicomparative iiadvantages, iia iigood iishould iibe iiproduced
iiwhere ii- iiAnswers ii-its iiopportunity iicosts iiare iileast
It iiis iimost iiaccurate iito iisay ii- iiAnswers ii-Normative iistatements iiinvolve iivalue
iijudgments iiabout iithe iiway iithings iiought iito iibe iiwhile iipositive iistatements iifocus iion
iifacts.
Societal iiattempts iito ii"solve" iithe iieconomic iiproblem iiof iiscarcity iihave iiincluded iiwhich
iiof iithe iifollowing ii- iiAnswers ii-All iiof iithe iithese iianswers iicould iibe iiconsidered
iisolutions iito iithe iiscarcity iiproblem iiin iieconomics
Eli iiand iiMax iican iiproduce iitwo iigoods iiin iia iiday, iibreakfast iibars iiand iifrog iifood
iipellets. iiIn iia iisingle iiday, iiMax iican iimake ii10 iibreakfast iibars iior ii30 iifrog iipellets, iiand
iiin iia iisingle iiday iiEli iican iiproduce ii5 iibreakfast iibars iior ii40 iifrog iipellets. iiWhich iiof iithe
iifollowing iidescribes iicomparative iiand iiabsolute iiadvantage iifor iiEli iiand iiMax? ii-
iiAnswers ii-Max iihas iicomparative iiadvantage iiin iiproducing iibreakfast iibars iiand iiEli iihas
iiabsolute iiadvantage iiin iiproducing iifrog iipellets.
When iione iidecision iiis iimade, iithe iinext iibest iialternative iinot iiselected iiis iicalled ii-
iiAnswers ii-opportunity iicost
The iilaw iiof iiincreasing iiopportunity iicosts iiexists iibecause: ii- iiAnswers ii-resources iiare
iinot iiequally iiefficient iiin iiproducing iivarious iigoods.
In iia iitypical iicircular iiflow iidiagram iithere iiare
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