AP Macroeconomics Quiz: Units 1 & 2 Review

What is the first step in solving the problems presented in the quiz?

• Defining the problem

• Calculating the data

• Comparing the options

• Reviewing the answers

Which country has the absolute advantage in coffee production?

• Both

• Peru

• Neither

• Brazil

What does comparative advantage in coffee production depend on?

• Opportunity cost

• Labor cost

• Total production time

• Quality of coffee

Which country has a comparative advantage in wheat production?

• Neither

• Brazil

• Peru

• Both

What is the opportunity cost of moving production from point R to point T on the PPC?

• Three units of good X

• Six units of good Y

• Seven units of good X

• Five units of good Y

What does the PPC curve demonstrate?

• Opportunity costs

• Inflation rates

• Unemployment rates

• Economic growth

What effect does an increase in both demand and supply have on equilibrium price?

• Remains indeterminate

• Increases

• Decreases

• None of the above

Which of the following is NOT included in the GDP calculation using the expenditures approach?

• Corporate taxes

• Government purchases

• Exports

• Private investment spending

What happens to the unemployment rate when workers become discouraged?

• Data insufficient to determine

• Decreases

• Remains the same

• Increases

What is the GDP of the country based on the data provided?

• $282 billion

• $222 billion

• $347 billion

• $304 billion