AP Macro- Quiz #1 Review

________ exists when there are no resources to meet human needs.

• Scarcity

• Surplus

• Excess

• Influx

This image is a Productions Possibility Curve. What does a(n) PPC graph illustrate?

• Supply

• Surplus

• Scarcity

• Demand

By making the decision to go to sleep instead of going to work you are giving up money. What you give up by choosing one alternative over another represents your?

• Demand

• Supply

• Economy

• Opportunity Cost

A tool used by a society to allocate (designate) its scarce resources?

• Resources

• Free Enterprise System

• Production Possibility Curve

• Economic System

A combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run a business?

• Entrepreneur

• Laborer

• Economist

• Environmentalist

T/F: Underutilization is to use a resource to full potential?

• True

• False

If there is destruction of resources in an economy the PPC

• Shifts towards left hand side
• Brings unemployment
• Shifts towards right hand side
• None of the above

What is the effect on PPC if there is growth of resources ?

• PPC shifts towards left hand side 
• PPC shifts towards right hand side
• There is movement on the same PPC
• No effect on PPC

On the PPC, which point is inefficient?

• A
• B
• C
• D

On the PPC, which point is unattainable?

• A
• B
• C
• D