AP Macro Unit 1 Basics Test Review

When a chef creates a dinner plate of food for a customer, which of the following represents the physical capital resource?

• the chef himself/herself
• the food ingredients
• the oven
• the chef's training and experience

Which of the following is an example of a positive statement?

• The poverty rate should be 4%.
• A high rate of economic growth is good for the country.
• Health care is a universal right for all citizens.
• The federal government pays for 46% of U.S. health care costs.

Which of the following questions is appropriate to the study of microeconomics?

• How does the aggregate price level affect overall consumer spending?
• How does the level of interest rates affect investment spending?
• How much will Sony charge for the new game system to be introduced later this year?
• How does the gross domestic product affect overall government spending?

Which of the following is an example of a normative statement?

• The rate of unemployment is 4%.
• A high rate of economic growth creates more jobs for the country.
• Everyone in America deserves to be covered by national health insurance.
• High school graduation rates in the U.S. are lower than they are in some European nations.

In an attempt to reduce shooting deaths, some cities have offered money to people who turn in their guns. This program is an example of the government using ________ to influence behavior.

• the equity principle
• marginal analysis
• the law
• incentives

If an economy is producing a level of output that is on its production possibility curve, the economy has:

• idle resources.
• idle resources but is using resources efficiently.
• no idle resources but is using resources inefficiently.
• no idle resources and is using resources efficiently.

The U.S. production possibility curve will ________ if there is a large influx of immigrants to the labor force.

• shift out
• shift in
• not change
• become more linear in shape

Japan, at the point at which it is currently producing, must give up the production of 100 computers to produce 25 additional cellular telephones. Which of the following is the opportunity cost of producing 4 computers?

• 4 cellular telephones
• 1 cellular telephone
• 20 cellular telephones
• 1/4 of a cellular telephone

Trade can be beneficial to an economy because:

• it results in a more efficient use of the combined resources of some of the trading countries, even though it reduces efficiency in others.
• more goods and services can be obtained at a lower opportunity cost.
• it prevents specialization in those activities in which countries have a comparative advantage.
• it prevents unemployment.

If the opportunity cost of manufacturing automobiles is lower in the United States than in Britain and the opportunity cost of manufacturing airplanes is higher in the United States than in Britain, then the United States will:

• import airplanes from Britain and export automobiles to Britain.
• export airplanes to Britain and import automobiles from Britain.
• import both airplanes and automobiles from Britain.
• export both airplanes and automobiles to Britain.