AP Macroeconomics Unit 1 Topics 1-3

Front

What is the fundamental problem of economics?

Back

How to fulfill our unlimited wants and needs with limited resources?

Front

What is the definition of the economic term Opportunity Cost?

Back

the value of the next best alternative that is given up due to the choice you made 

Front

What does point B represent? Options: Production at greater than the country's minimum potential, Production is less than the country's minimum potential, Production is greater than the country's maximum potential, Production at the country's maximum potential

Back

Production at the country's maximum potential

Front

What does point Y represent on the PPC?

Back

Unattainable / impossible

Front

If the economy is initially at point W, then the opportunity cost of moving to point X is

Back

6 units of honey.

Front

Based on the production possibilities table, which production combination is possible? Options: 5 pairs of shoes and 28 pizzas, 3 pairs of shoes and 23 pizzas, 2 pairs of shoes and 20 pizzas, 4 pairs of shoes and 15 pizzas

Back

2 pairs of shoes and 20 pizzas

Front

The simplified production possibilities curves for country A and B are shown. Which one of the following statements is correct? Options: Country A has the comparative advantage in both goods, Country A has the comparative advantage in chairs & Country B has the comparative advantage in shirts, Country B has the absolute advantage in shirts only, Country A has the comparative advantage in shirts & Country B has the comparative advantage in chairs

Back

Country A has the comparative advantage in chairs & Country B has the comparative advantage in shirts

Front

The study of choices a society makes in response to scarcity

Back

Economics

Front

The most desirable alternative given up when a choice is made:

Back

Opportunity Cost

Front

The producer that can produce the most output or require the least amount of resources for production is:

Back

Absolute Advantage