AP Macro - Unit 1

What are the 3 main types of factors of production?

• money, technology, entrepreneurship
• water, minerals, machinery
• skills, resources, management
• land, labor, capital

What is a PPC?

• Production Possibilities Curve (PPC)

• Pay Per Curve (PPC)

• Production Per Collection (PPC)

• Pay Possibilities Collection (PPC)

What is the law of demand?

• The law of demand suggests that higher prices lead to higher quantity demanded.
• The law of demand states that price and quantity demanded are directly related.
• The law of demand as price increases, quantity demanded decreases (and vice versa).

• The law of demand indicates that quantity demanded remains constant regardless of price changes.

When is there disequilibrium in an economy?

• When prices are fixed by regulation.
• When government intervention is minimal.
• When price does not equal equilibrium price

• When the economy is growing rapidly.

A surplus in the market is when....

• A surplus in the market is when the quantity supplied exceeds the quantity demanded and price is more than the equilibrium price

• A surplus in the market is when there is no change in price and the price is less than the equilibrium price

• A surplus in the market is when the quantity supplied equals the quantity demanded.
• A surplus in the market is when the quantity demanded exceeds the quantity supplied.

A shortage in the market occurs when...

• the market is in equilibrium
• the quantity supplied exceeds the quantity demanded
• the quantity demanded exceeds the quantity supplied and price is less than the equilibrium price

• the quantity demanded equals the quantity supplied and the price is above the equilibrium price

Simultaneous shifts...

• Simultaneous shifts refer to changes in static variables.
• Simultaneous shifts are unrelated to variable changes.
• Simultaneous shifts only happen in one variable at a time.
• Simultaneous shifts shifts supply and demand + price or quantity

In single shifts...

• Single shifts involve multiple overlapping work periods.
• Single shifts shift supply or demand + price and quantity

• Single shifts are only applicable to part-time jobs.
• Single shifts require employees to work continuously without breaks.

In what direction are supply and demand shifts always moving along?

• Along the quantity axis
• In a circular motion
• Perpendicular to the price axis
• Horizontally

What are "sellers" in terms of supply?

• Sellers are consumers of goods in the supply market.
• Sellers are only manufacturers of products.
• Sellers are individuals who purchase goods from suppliers.
• Sellers are the number of sellers in the market