Unit 1 quiz APMacro

When making a decision, the next best alternative is called

• The production possibilities

• The opportunity cost

• Scarcity

• The absolute advantage

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?

• They will decide to study for the exam

• The opportunity cost of going to the beach is all the other things they could have done

• The opportunity cost of going to the beach is being better prepared for the exam

• The person prefers playing volleyball at the beach to study for the exam

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

• resources are scarce in the economy

• Resources are not equally suited for the production of both goods

• Economic growth is occurring in the economy

• Resources are being inefficiently used in the economy

An efficient use of resources

• Future output once producers become more efficient

• An inefficient use of resources

• A combination that cannot be achieved due to scarcity

• Full employment of resources in the economy

An increase in which of the following would cause an outward shift of the production possibilities curve for consumer goods and capital goods?

• 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

Which of the following is true regarding the production possibilities curve (PPC)?

• An increase in resources will shift the PPC inward

• A decrease in unemployment will cause the PPC to move outward

• The production of capital goods will lead to more economic growth in the future

• The government prefers consumer goods

An increase in which of the following will increase the quantity supplied of volleyballs?

• Taxes on volleyball producers

• The price of a substitute

• The number of volleyball consumers

• The price of volleyballs

If demand for mp3 players decreases when the price of mobile phones decreases, we can say that cell phones and mp3 players are

• Substitute goods

• Normal goods

• Complementary goods

• Unrelated due to the substitution effect

If the price of cars significantly increases, then the

• Supply of cars will increase

• Supply of auto repair shops will decrease

• Quantity supplied of cars will increase

• The demand for cars will decrease

The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is _____.

• direct, inverse

• inverse, direct

• inverse, inverse

• strong, weak