AP Micro Unit 1 Review 2022-23

What is the opportunity cost of moving from point B to C on the curve?

• 30 tons of wheat
• 30 tons of steel
• 5 tons of wheat
• 5 tons of steel

If total utility increases from 150 to 210 utils after consuming a 4th candy bar, then what's the marginal utility per dollar of the 4th candy bar if the price is $2?

• 60 utils per dollar
• 110 utils per dollar
• 30 utils per dollar
• 75 utils per dollar

The Invisible Hand concept explains

• consumers and producers working together with no one directing them

• businesses taking advantage of customers

• helping those who are disadvantaged

• economic planning and direction by experts

Who is the famous economist, defender of free-markets, author of The Wealth of Nations? His writings are considered a foundation for the economic system of capitalism.

• Adam Smith
• Karl Marx
• Friedrich Engels
• Weyland Yutani

WHAT IS LABOR?

• work people do for wages to produce good and services

• actions people do for other people

• any physical object

• The money people get for inheritance

Which factor of production is this?

• capital

• entrepreneur

• land

• labor

If a natural disaster strikes, the production possibilities curve can shift

• No shift
• To the left
• To the right
• Outward on one axis only

What does point Y represent on the PPC?

• Efficiency
• Unattainable / impossible
• Inefficency
• Nothing

What does point B represent?

• Production at greater than the country's minimum potential
• Production is less than the country's minimum potential
• Productive inefficiency
• Productive efficiency

The inability to satisfy all wants at the same time

• Scarcity
• choice
• opportunity cost
• resources