AP Economics Unit 1 Test Review

Economists use the term “capital” to mean

• money

• plants and equipment

• where the central government is located

• the center of the economy

Land refers to

• all productive resources

• all natural resources

• farmland only

• real estate

• factories

Macroeconomics is the study of

• the actions of individual consumers

• national or global economies

• government

• the actions of individual businesses

• how ceteris paribus affects causation

Opportunity cost refers to

• the dollar amount attached to a good or service

• the value of the next best alternative

• the cost of not expanding production

• the cost of labor when production is expanded or changed

• the amount of goods and services bought or sold in a year

All of the following might reasonably be expected to shift the demand curve for beef to a new position except

• a change in people's tastes with respect to beef

• a decrease in the price of beef

• an increase in the money incomes of beef consumers

• a widespread advertising campaign by the producers of a product competitive with beef, such as pork

• expectations that beef prices will fall in the future

The equilibrium price of a good occurs if the

• quantity of the good demanded equals the quantity of the good supplied

• quantity of the good demanded is greater than the quantity of the good supplied

• quantity of the good demanded is less than the quantity of the good supplied

• demand for the good is greater than the supply of the good

• price of the good seems reasonable to most buyers