AP Macro Unit 1

Front

Which of the following is true for all economies regardless of their economic system? Every economy must determine what to produce and how it produces goods and services, Every economy must find a way to distribute income equally, Every economy must find ways to privatize markets to maximize efficiency, Every economy must prevent unemployment through government intervention, Every economy must open free trade with other economies

Back

Every economy must determine what to produce and how it produces goods and services

Front

When making a decision, the next best alternative is called

Back

The opportunity cost

Front

Which of the following must be true if an individual's next best alternative to going to the beach is studying for an economics exam? Options: They will decide to study for the exam, The opp. cost is seeing their friends at the beach, The person prefers playing volleyball at the beach to studying for the exam, The Opp Cost of going to the beach is all the other things they could have done, The Opp Cost of going to the beach is being better prepared for the exam.

Back

The Opp Cost of going to the beach is being better prepared for the exam.

Front

If the Production possibilities curve (PPC) is concave from the origin (bowed out), then economists say that

Back

Resources are not equally suited for the production of both goods

Front

A point outside the PPC would represent

Back

A combination that cannot be achieved due to scarcity

Front

An increase in which of the following would cause an outward shift of the PPC for consumer goods and capital goods? Options: An increase in the demand for consumer goods, An increase in taxes on consumers, A decrease in unemployment, An increase in the resources to produce capital goods, The efficient production of consumer goods

Back

An increase in the resources to produce capital goods

Front

If demand for golf balls decreases when the price of baseball gloves decreases, we can say that baseball gloves and golf balls are

Back

substitute goods

Front

If the price of cars significantly increases, then the

Back

quantity supplied of cars will increase

Front

The relationship between quantity supplied and price is ________, and the relationship between quantity demanded and price is _________

Back

direct, inverse

Front

Which of the following will NOT cause the demand for video games to change? a change in the price of a close substitute, a change in consumer incomes, a change in the price of video games, a change in consumer tastes, a change in consumer preferences

Back

a change in the price of video games