AP Macro Final Exam Review

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

What does point B represent?

Back

Productive efficiency

Front

Which point represents "resources are not being used efficiently, or resources are being wasted or idle"? Options: Point A, Point Y, Point X, All of the above

Back

Point X

Front

The opportunity cost of a good is

Back

the alternative goods forgone.

Front

What is the opportunity cost of the Welch family's decision to spend money on a swimming pool instead of a vacation to the Grand Canyon?

Back

vacation

Front

Countries will export goods and services that they can produce at lower costs. This is called —

Back

comparative advantage

Front

The basis of trade based from the lowest opportunity cost is considered as ____.

Back

Comparative Advantage

Front

The picture illustrates

Back

an increase in demand

Front

The picture illustrates

Back

a decrease in demand

Front

The picture illustrates

Back

a decrease in supply