AP Econ Final Review

The basic problem in Economics in which a society doesn't have enough resources to produce whatever it needs and wants is called...

• Factors of Production

• Scarcity

• Shortage

• Limited resources

The branch of economics that studies the behavior and the performance of the entire economy instead of just its small parts is called ...

• Command economy

• Limited Economics

• Microeconomics

• Macroeconomics

All of the following are factors of production except,

• Land

• Labor

• Capital

• Currency

Opportunity cost can best be defined as ...

• The value of the next best alternative when making a choice

• The amount of resources available

• The creation of a company or business

• Natural resources and raw materials used to make products

What does point F on the PPC curve represent?

• Not capable of producing at this capacity

• Maximum production

• Over production

• Underutilization of resources

What do the arrows on the graph represent?

• An expansion in the amount of resources that can be used for production

• An economic decline

• The economy remaining stagnant

The type of opportunity cost that occurs when you produce more and more of one good and give up more and more of another good is called ...

• Expansion opportunity cost

• Increasing opportunity cost

• Constant opportunity cost

• Limited opportunity cost

The ability to produce more of a good or service with a given amount of resources that someone else is known as

• Absolute advantage

• Terms of trade

• Comparative advantage

• Free trade

What is the difference an import and an export?

• An import is a good sent into the country and an export is sent out

• An export is a good sent into the country and an import is sent out

The amount of good or service that is desired at a particular level is called

• Quantity demanded

• Quantity supplied

• Equilibrium