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

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  • December 26, 2024
  • 31
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • ap macroeconomics exam questions correct solutions

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  • AP Macroeconomics

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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.

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