AP Macroeconomics (Study Guide) Questions And Answers
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Module
AP Macroeconomics
Institution
AP Macroeconomics
AP Macroeconomics (Study Guide) Questions
And Answers
What is per unit opportunity cost for trucks? 1 truck equals 2 cars
When should a country specialize in making an item? when the country has the
comparative advantage and lowest opportunity cost for an item.
United states can make 20 tons...
AP Macroeconomics (Study Guide) Questions
And Answers
What is per unit opportunity cost for trucks? 1 truck equals 2 cars
When should a country specialize in making an item? when the country has the
comparative advantage and lowest opportunity cost for an item.
United states can make 20 tons of coffee or 60 computers (in thousands) in a year
Honduras can make 40 tons of coffee or 40 computers (in thousands) in a year
Who has the comparative advantage in coffee? Honduras because its opportunity cost for
coffee is lower.
Which of the following does NOT shift demand curve for hot dogs? a change in the price
of hot dogs
A demand curve is normally downward sloping
An inferior good is something you buy more of when your income goes down
,AP Macroeconomics (Study Guide) Questions
And Answers
A positive statement is one that: is objective and is based on facts.
The Law of Demand states as prices go up the quantity demanded goes down
Which of the following would cause an outward or rightward shift in the production possibilities
curve? An increase in capital equipment
Economists are likely to disagree most often over normative statements
Which of the following is true of the concept of increasing opportunity costs? it suggests
as more of one is produced, some of the other must be sacrificed at an increasing rate.
Which of the following are the assumptions for a production possibility curve? Two items
to trade, full employment, limited resources, fixed technology
In the circular flow diagram of a market economy, which of the following is true?
Businesses pay wages, rent, interest, and profits to households in return for use of factors
of production
, AP Macroeconomics (Study Guide) Questions
And Answers
According to the theory of comparative advantages, a good should be produced where its
opportunity costs are least
It is most accurate to say Normative statements involve value judgments about the way
things ought to be while positive statements focus on facts.
Societal attempts to "solve" the economic problem of scarcity have included which of the
following All of the these answers could be considered solutions to the scarcity problem
in economics
Eli and Max can produce two goods in a day, breakfast bars and frog food pellets. In a single day,
Max can make 10 breakfast bars or 30 frog pellets, and in a single day Eli can produce 5
breakfast bars or 40 frog pellets. Which of the following describes comparative and absolute
advantage for Eli and Max? Max has comparative advantage in producing breakfast bars
and Eli has absolute advantage in producing frog pellets.
When one decision is made, the next best alternative not selected is called opportunity
cost
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