AP Macroeconomics Exam Questions Correct Solutions New Update (Verified A+ Pass)
7 views 0 purchase
Course
AP Macroeconomics
Institution
AP Macroeconomics
AP Macroeconomics Exam Questions Correct Solutions New Update (Verified A+ Pass)
Macroeconomics approaches the study of economics from the viewpoint of: - Answers - the entire economy
Which of the following is a macroeconomic statement? - Answers - the gross profits of all American businesses...
AP Macroeconomics Exam Questions
Correct Solutions New Update
(Verified A+ Pass)
Macroeconomics approaches the study of economics from the viewpoint of: - Answers -
✔✔ the entire economy
Which of the following is a macroeconomic statement? - Answers -✔✔ the gross profits
of all American businesses were $181 billion last year
To be considered scarce, an economic resource must be - Answers -✔✔ limited and
desirable, but not free
The opportunity cost of producing an additional unit of product J is - Answers -✔✔ the
amount of product K that could have been produced with the resources used to make
the unit of J.
The opportunity cost of building a new high school is - Answers -✔✔ other goods and
services, which must now be sacrificed to build the new high school
The main benefit of free trade between two countries is that - Answers -✔✔ Each
country can consume beyond its constraints of resources and productivity
The theory of comparative advantage implies that Alpha would find it advantageous to -
Answers -✔✔ Export grain and import steel
Assume that Country A exports one bushel of wheat in exchange for 2.5 bushels of corn
from Country B. If the terms of trade are beneficial to both countries, which of the
following must be true? - Answers -✔✔ The cost of producing a bushel of wheat in
Country B is greater than 2.5 bushels of corn
According to the theory of comparative advantage, a good should be produced where -
Answers -✔✔ its opportunity costs are least.
Which of the following will not cause the demand curve for athletic shoes to shift? -
Answers -✔✔ A decrease in the price of athletic shoes
Assume that the demand for apples is downward sloping. If the price of apples falls from
$0.80 per pound to $0.65 per pound, which of the following will occur? - Answers -✔✔
A larger quantity of apples will be demanded
,On the graph above, what area represents consumer surplus when the price is $10? -
Answers -✔✔ C
Producer surplus is the - Answers -✔✔ amount the seller is paid less the cost of
production.
An increase in the price of gasoline will cause the demand curve for tires to shift in
which direction? - Answers -✔✔ To the left, because gasoline and tires are
complements
After graduating from college with an accounting degree, you decide to become a rock
star. Your opportunity costs include which of the following?
I. Goods forgone to build and furnish a home studio in which to practice and record.
II. Tuition costs.
III. Forgone income as an accountant - Answers -✔✔ III only
You should have studied an extra hour last night if - Answers -✔✔ The marginal benefit
of studying an extra hour exceeds its marginal cost
A leftward shift of a product supply curve might be caused by: - Answers -✔✔ an
increase in the prices of needed inputs
How might point E be attained? - Answers -✔✔ If improvements in technology occurred
in either the computer sector or the farm products sector
Which of the following is the most fundamental issue that economics addresses? -
Answers -✔✔ Use of scarce resources
James is deciding between a job as a mechanic and a pizza delivery man. The pizza
delivery job pays more, but also takes up much more time. Which of the following could
be considered an opportunity cost of taking the pizza delivery job? - Answers -✔✔ The
reduced free time
Two nations, Mars and Venus, each produce food and clothing. The table above gives
points on each nation's production possibilities curve. The asterisks indicate their
current point of production.
In Venus, the opportunity cost of the first unit of - Answers -✔✔ food is two units of
clothing.
Assume that Country A exports one bushel of wheat in exchange for 2.5 bushels of corn
from Country B. If the terms of trade are beneficial to both countries, which of the
following must be true? - Answers -✔✔ The cost of producing a bushel of wheat in the
Country A is less than 2.5 bushels of corn
, "Because of unseasonably cold weather, the supply of oranges has substantially
decreased.". This statement indicates that: - Answers -✔✔ The amount of oranges that
will be available at various prices has declined
"Economic equity is one of the broad social goals of economic systems. Being a
champion of equality, the U.S. should concentrate on obtaining this goal first." Which of
the following is true about this pair of statements? - Answers -✔✔ The first is positive
and correct; the second is normative.
In market economies, the incentive that draws entrepreneurs into industry is
Correct answer: - Answers -✔✔ Profits
The phrase 'There Is No Such Thing As a Free Lunch' refers to the belief that - Answers
-✔✔ Nothing is without cost
Two nations, Mars and Venus, each produce food and clothing. The table above gives
points on each nation's production possibilities curve. The asterisks indicate their
current point of production.
Which of the following statements is correct based on the concept of comparative
advantage? - Answers -✔✔ Mars should specialize in the production of food.
The crucial problem of economics is - Answers -✔✔ allocating scarce productive
resources to satisfy unlimited wants
The production possibilities curve of the country would be most likely to shift to the right
if the country were currently producing at which of the following points? - Answers -✔✔
Point D
The law of increasing opportunity cost is reflected in the shape of the - Answers -✔✔
production possibilities curve concave to the origin.
Country A can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Country B
can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this
information, which of the following are true? - Answers -✔✔ Country A has an
comparative advantage in the production of cocoa, while Country B has a comparative
advantage in the production of cars.
A professor hires two aides, assigning them the tasks of reading student papers and
typing lecture notes on a computer. One of the aides, Ben, can read 1 page of a student
paper per minute or type 50 words of lecture notes per minute, and the other aide, Ann,
can read 3 pages of a student paper per minute or type 60 words of lecture notes per
minute. - Answers -✔✔ Ann has a comparative advantage in reading student papers,
and Ben has a comparative advantage in typing notes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Stuviaascorers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $18.99. You're not tied to anything after your purchase.
