AP Macroeconomics Unit 1 Exam
Quiz by Mark Stegall
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40 questions
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- Q1The study of economics is primarily concerned withmanaging money and financial assetsallocating scarce resources to meet society wantspromoting economic equality and crating a just societyenacting laws that protect the environment30s
- Q2What is the difference between physical capital and human capital?Physical capital is used in the modern production process while human capital is no longer used in modern economiesPhysical capital is money while human capital is labor done by workersPhysical capital are tangible resources used to produce goods and serve while human capital is intangible knowledge and skillsPhysical capital can only be sed in market economies30s
- Q3The next best alternative given up when a decision is made is called.a trade offan opportunity costcomparative advantagea scarce resource30s
- Q4The production possibilities curve (or frontier) showsthat resources are not scarce as long as they are used efficientlythat producing consumer goods leads to more economic growth in the long run than producing capital goodsthe different combinations of two goods or services that can by produced given a fixed number of resourcesthe number of goods and services a country should produce to meet society's needs30s
- Q5For the production possibilities above, the opportunity cost of moving from combination "D" to combination "C" is2 Hats1 Hat15 Shoes10 Shoes30s
- Q6Which of the following is true if the individual with these production possibilities above was producing 20 shoes and 2 hats?They could be producing beyond their production possibilitesTheir scarce resources would not be used efficientlyThey would be producing too many shoesThey would maximize their sales and profit30s
- Q7A point outside the production possibilities frontier representsan efficient use of resourcesan unattainable combinationfuture output if producers become more efficientfull employment in an economy30s
- Q8Which of the following is true if a production possibilities curve for two goods is straight rather than bowed outward?Resources are not equally suited for the production of both goodsResources are not scarceEconomic growth is occurring in the economyResources are equally suited for the production of either good30s
- Q9A bowed-out production possibilities curve showsdecreasing opportunity cost because resources are not easily adaptableincreasing opportunity costs because resources are easily adaptableconstant opportunity cost because resources are easily adaptableincreasing opportunity costs because resources are not easily adaptable30s
- Q10Which of the following will NOT result in an outward (rightward) shift of the production possibilities curve.an increase in the quantity of a society's resourcesan improvement in the quality of a nation's human capitala decrease in unemploymenta technological breakthrough that improves productivity30s
- Q11Whic of the following statements is true?Combination C is inefficientProducing combination B will result in greater future growth than producing combination AThe entire curve will shift outward if this economy becomes more efficientCombination E is attainable but undesirabe30s
- Q12Which of the following best summarized the main difference between command economies and free market economies?Command economies don't allow workers to specialize in specific industriesFree arket economies proote private ownership of resourcesProduction in free market economies is always efficientCommand economies promote the production of capital goods30s
- Q13Whicn of the following is true according toeh the circular flow model?Firms are demanders in the reource market and suppliers in the product marketHouseholds are demanders in boh the resource and factor marketHouseholds are demanders in the resource market and suppliers in the product marketFirms are suppliers in both the product market and factor market30s
- Q14Assume that Brazil can produce 30 tons of sugar or 20 tons of wheat and Peru can produce 20 tons of sugar or 10 tons of wheat. Which of the following is true?Peru has a comparative advantage in the production of wheatFor Brazil, the opportunity cost of producing one ton of wheat is 1.5 tons of sugarBrazil cannot benefit from trading with PeruFor Peru, the opportunity cost of producing one ton of sugar is 2 tons of wheat30s
- Q15Assume that Brazil can produce 30 tons of sugar or 20 tons of wheat and Peru can produce 20 tons of sugar or 10 tons of wheat. Given the information...Peru should specialize in the production of sugarBrazil should specialize in the production of sugarBrazil should produce both sugar and wheatThere are no transaction costs if they decided to trade30s
