Exam (elaborations)

AP Macroeconomics Exam Questions Correct Solutions New Update (Verified A+ Pass)

5 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: - the entire economy Which of the following is a macroeconomic statement? - the gross profits of all American businesses were $181 billion la...

[Show more]

Preview 4 out of 31 pages

View example

Uploaded on December 26, 2024
Number of pages 31
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

ap macroeconomics exam questions correct solutions

Institution AP Macroeconomics
Course AP Macroeconomics

KatelynWhitman Member since 1 year 605 documents sold

$13.49

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

1|Page

AP Macroeconomics Exam Questions
Correct Solutions New Update
(Verified A+ Pass)

Macroeconomics approaches the study of economics from the viewpoint of: - ✔✔the entire economy

Which of the following is a macroeconomic statement? - ✔✔the gross profits of all American businesses

were $181 billion last year

To be considered scarce, an economic resource must be - ✔✔limited and desirable, but not free

The opportunity cost of producing an additional unit of product J is - ✔✔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 - ✔✔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 - ✔✔Each country can consume beyond its

constraints of resources and productivity

The theory of comparative advantage implies that Alpha would find it advantageous to - ✔✔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? - ✔✔The cost of

producing a bushel of wheat in Country B is greater than 2.5 bushels of corn

Katelyn Whitman© 2025, All Rights Reserved.

,2|Page

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

opportunity costs are least.

Which of the following will not cause the demand curve for athletic shoes to shift? - ✔✔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? - ✔✔A larger quantity of apples will be

demanded

On the graph above, what area represents consumer surplus when the price is $10? - ✔✔C

Producer surplus is the - ✔✔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? -

✔✔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 - ✔✔III only

You should have studied an extra hour last night if - ✔✔The marginal benefit of studying an extra hour

exceeds its marginal cost

A leftward shift of a product supply curve might be caused by: - ✔✔an increase in the prices of needed

inputs

Katelyn Whitman© 2025, All Rights Reserved.

,3|Page

How might point E be attained? - ✔✔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? - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔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: - ✔✔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? - ✔✔The first is positive and correct; the second is normative.

In market economies, the incentive that draws entrepreneurs into industry is

Correct answer: - ✔✔Profits

The phrase 'There Is No Such Thing As a Free Lunch' refers to the belief that - ✔✔Nothing is without cost

Katelyn Whitman© 2025, All Rights Reserved.

, 4|Page

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? - ✔✔Mars

should specialize in the production of food.

The crucial problem of economics is - ✔✔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? - ✔✔Point D

The law of increasing opportunity cost is reflected in the shape of the - ✔✔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? - ✔✔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. - ✔✔Ann has a comparative advantage in reading student papers,

and Ben has a comparative advantage in typing notes

When on decision is made, the next best alternative not selected is called - ✔✔opportunity cost.

If the demand for good Y increases as the price of good X decreases, it can be concluded that - ✔✔X and Y

are complementary goods

Katelyn Whitman© 2025, All Rights Reserved.

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 KatelynWhitman. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $13.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

50990 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Popular Universities in the United States

Popular books

Find notes and summaries for these qualifications

Seller