AP Macro unit 1

This item is demanded more when an income decreases, and demanded less when the income increases

• capital good

• inferior good

• normal good

• substitute

• compliment

The next best choice to the decision that was made

• marginal benefit

• marginal cost

• opportunity cost

• trade off

• comparative advantage

"A recession is three quarters of decreasing GDP" is an example of ___________________

• normative economics

• positive economics

• allocative efficiency

• production efficiency

• scarcity

Land, Labor, Capital, and Entrepeneurship are the _________________

• factors of production

• human capital

• physical capital

• consumer goods

• constant opportunity cost

The lowest per-unit opportunity cost is calculated to identify the _________________

• trade off

• marginal benefit

• marginal cost

• absolute advantage

• comparative advantage

A Production Possibilites Curve with a straight curve from the x to y axis represents___________

• capital goods

• consumer goods

• diminishing marginal utility

• constant opportunity cost

• increasing opportunity cost

Assuming Papa Johns' has a sale on their pizza and so Domino's orders decrease; then these two items represent an example of:

• normal goods

• inferior goods

• production costs

• substitutes

• complements

When McDonalds' has their cheeseburgers on sale for $1 (instead of $3), which of the following will this cause?

• Demand will increase

• Supply will decrease

• Quantity Demanded will increase

• Demand will decrease

• Quantity Demanded will decrease

Assume that the cost of batteries for cell phones increases X100 at the same time that the government requires 100 hours of training (and a certificate) to sell the cell phones, what will be the possible market equilibrium result?

• Quantity decreases, Price decreases

• Quantity decreases, Price increases

• Quantity is indeterminate, Price decreases

• Quantity decreases, Price is indeterminate

• Quantity increases, Price is indeterminate

Fail Early, Fail _______________

• Always

• Forever

• Never

• Often

• Terribly