AP Unit 2 Test

When a country has ________________ they will specialize in producing that good.

• comparative advantage

• absolute advsantage

• opportunity cost

• non-beneficial trade

When a country has ____________ they will specialize in producing that good and they will __________ it to another country.

• comparative advantage, import

• absolute advantage, export

• absolute advantage, import

• comparative advantage, export

Assuming ceteris paribus, If Country A can produce 100 bicycles per day and Country Z can produce 90 bicycles per day, which of the following is true?

• Country A has absolute advantage in producing bicycles

• Country Z has absolute advantage in producing bicycles

• Country A will import bicycles from Country Z

• Country Z has comparative advantage in producing bicycles

Country A can produce a bicycle every 15 minutes. Country Z can produce a bicycle every 20 minutes. Which of the following is true?

• Country A will import bicycles from Country Z.

• Country A will Export bicycles to Country Z

• Country A has absolute advantage in producing bicycles

• Country Z has absolute advantage in producing bicycles

If supply and demand curves for 1 dozen cupcakes intersects at a price of $12 and a quantity of 100 dozen, and the curent price is $15 per dozen there is a ___________ and the market for cupcakes is in __________.

• Price loor,

  disequilibrium

• Price floor, equilibrium

• Surplus,

  disequilibrium

• Shortage, disequilibrium

A Price Ceiling creates a ______________, but not all __________ are

______________.

• Shortage, shortages,

  price ceilings

• surplus,

  shortages,

  equilibrium

• disequilibrium,

  shortages,

  surpluses

• equilbrium,

  equilibrium,

  disequilibrium

On a supply and demand curve three things can change first, they are

• Equilibrium,

  Disequilibrium,

  Price

• Supply,

  Demand,

  Price

• Quantity Demanded,

  Quantity,

  Supplied,

  Disequilibrium

• Future Expectations,

  Number of Sellers,

  Tastes and Preferences

If price changes first, what will change next on a supply and demand graph

• Supply or Demand

• Quantity Supplied or Quantity Demanded

• Equilibrium, Disequilibrium

• Not enough information to answer

If the price of Coke increases and people start drinking Pepsi instead what determinant has changed?

• Complimentary Goods

• Substitute Goods

• Future Expectations

• Number of Sellers

When oil prices increase and stay high for long periods of time which determinant will likely change the car market?

• Complimentary Goods

• Substitute Goods

• Number of Sellers

• Not enough information to answer