AP MAcro Unit 1 Review

• Price $2.00 Bushels of Wheat 10,000

• Price $1.75 Bushels of Wheat 15,000

• Price $1.50 Bushels of Wheat 20,000

• Price $1.25 Bushels of Wheat 30,000

• An increase in consumers’ income, assuming that video games are a normal good

• An increase in the price of game consoles, a complementary good

• A decrease in the price of mobile games, a substitute good

• A decrease in the number of buyers in the market

• A decrease in the price of video games

Which of the following changes will most likely result in a movement from point to point along the demand curve ?

• A decrease in the number of buyers

• A decrease in the price of video games

• A decrease in the expected future price of video games

• An increase in the negative effects of video games on players

• An increase in the use of video games for educational purposes

The diagram above shows the production possibilities curve for the production of peaches and apples in Fruitland.

The production possibilities curve illustrates which of the following relationships?

• The production of peaches decreases as apple production decreases.

• The production of peaches increases as apple production increases.

• The opportunity cost of peach production decreases as apple production decreases.

• Fruitland cannot produce a combination of 5 units of peaches and 10 units of apples.

• Fruitland can produce only the combinations of peaches and apples illustrated by points and .

Between points and on the , the opportunity cost of one unit of peaches is which of the following?

• 2 units of apples

• 10 units of apples

• 1 unit of apples

• 2 units of peaches

• 1 unit of peaches

• shift from PPC1 to PPC2

• A movement from point A to point D

• A movement from point B to point C

• A movement from point C to point E

• A movement from point D to point B

• Producing at point Z results in the underutilization of resources.

• The combination represented by point Y is unattainable, given the scarcity of resources.

• Resources are fully utilized at points W and X.

• Point X represents the most efficient combination of the two goods that can be produced by this economy.

• Movement from point X to point Y

• Movement from point Y to point X

• Movement from point Y to point Z

• Shift from PPC1 to PPC0

• Movement from point Z to point X

• there is a shortage, and the price will rise

• there is a shortage, and the price will fall

• there is a surplus, and the price will rise

• there is a surplus, and the price will fall

• demand will decrease and supply will increase

Assume that for consumers, pears and apples are substitutes. It is announced that pesticides used on most apples may be dangerous to consumers’ health. As a result of this announcement, which of the following market changes is most likely to occur in the short run in the pear market?

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