AP Macroeconomics Course Overview, Questions, and Current Issues

What fundamental economic principle is introduced in Unit 1 that emphasizes the limitation of resources?

• Scarcity

• Abundance

• Equilibrium

• Surplus

Which concept is illustrated by the Production Possibilities Curve (PPC) in Unit 1?

• Opportunity Cost

• Market Demand

• Supply Chain

• Consumer Surplus

What economic concept explains the benefits of specialization and trade?

• Comparative Advantage

• Absolute Advantage

• Market Equilibrium

• Price Elasticity

How can the concept of comparative advantage help countries recover from such disruptions?

How do shifts in demand and supply curves explain these price changes?

1. How can opportunity cost guide individuals and policymakers in addressing these changes?

What is Gross Domestic Product (GDP) used to measure?

• A nation's economic activity

• The level of societal well-being

• Non-market activities

• The rate of inflation

Which of the following is NOT a component of GDP?

• Consumption

• Investment

• Government spending

• Unemployment

What type of unemployment is caused by changes in the business cycle?

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Seasonal unemployment

What policies can governments implement to address cyclical unemployment and stimulate growth?