When opportunity cost is constant across all production levels, the productions possibilities frontier is

a straight diagonal line slopping downward from left to right

When an economy produces a combination of goods that lies on the production possibilities frontier,

resources are being used fully and efficiently.

resources will never be depleted.

The law of increasing costs does not apply to guns and butter.

is the result of resources not being perfectly adaptable between the production of two goods.

implies that prices will rise when the costs of making a good rise.

causes the production possibilities frontier to be a straight line.

implies that opportunity costs will rise as production levels fall.

Which of the following is a fundamental economic question?

Who will get how much of each good and service?

Who will make the economic decisions?

Who will be allowed into the economy?

In a command economy, which entity dictates the answers to the fundamental economic questions?

the central government dictates the answers to the fundamental economic questions

the market dictates the answers to the fundamental economic questions

competition help answer the fundamental economic questions

state and local governments respond to the fundamental economic questions

laws are set up to answer the fundamental economic questions

rely on markets to coordinate economic activity.

rely on the government to address the fundamental questions.

rely on elected officials to make the most important economic decisions.

rely on courts to ensure people and firms get what they deserve.

are more equitable than command economies.

Prices in capitalist economics are

determined by supply and demand.

determined, in most cases, by the federal government.

a reflection of our basic values.

What do economists mean when they state that a good is scarce?

The amount of the good that people would like to have exceeds the supply that is freely available from nature.

There is a shortage or insufficient supply of the good at the existing price.

It is impossible to expand the availability of the good.

People will want to buy more of the good regardless of price.

the allocation of a limited supply of a good or resource among users who would like to have more of it.

a function that can only be performed by market prices.

a function that is unnecessary except in cases where markets are used to allocate goods and resources.

essential only when the price of a product is set above market equilibrium.

The expression, "There's no such thing as a free lunch" implies that

costs are incurred when resources are used to produce goods and services.

everyone has to pay for his own lunch.

the person consuming a good must always pay for it.

no one has time for a good lunch anymore.

Which one of the following states a central element of the economic way of thinking?

Incentives matter--if the personal cost of a choice increases, individuals will be less likely to choose it.

The realism of the assumptions is the best test of an economic theory.

When deciding how to allocate time, the concept of opportunity cost is meaningless.

Which one of the following is a positive economic statement?

An increase in the price of butter causes consumers to buy less butter.

Social conscience demands that we increase the minimum wage.

Taxes should be raised to halt inflation.

The sales tax on food should be repealed.

Goods are scarce because

the desire for goods is far greater than their availability from nature.

of greed; if human beings were not so selfish, goods would be less scarce.

of competition; if people were not so competitive, it would be possible to satisfy our desire for material things.

of private property; if things were not owned privately, scarcity could be eliminated.

Which of the following is true?

Using scarce resources to meet a need in one area will reduce our ability to meet needs in other areas.

Economic analysis assumes that people act only as the result of selfish motives.

Charitable behavior is inconsistent with the basic postulate of economics.

The economic way of thinking stresses that good intentions usually lead to sound economic policy.

Economics is the study of:

how choices are made because of scarcity.

how the values and preferences of people are formed.

how to make money in the stock market.

"There is no such thing as a free lunch." This statement best reflects the fact that

an opportunity cost is always present when scarce resources are used to produce a good.

consumers are unwilling to pay for a good unless it provides them with value.

positive statements without normative qualifications have little use in economics.

the value of a good to consumers will decrease as the consumption of it increases.

When economists say an individual displays economizing behavior, they simply mean that she is

seeking the least cost method to accomplish objectives.

buying only those products that are cheap and of low quality.

learning how to run a business more effectively.

What is the best test of an economic theory?

the intentions of the persons undertaking the activity that the theory attempts to explain

The opportunity cost of an action is

the value of the opportunity or opportunities that must be sacrificed in order to take the action.

the monetary payment the action required.

the total time spent by all parties in carrying out the action.

the cost of all alternative actions that could have been taken.

The economic way of thinking stresses that

incentives matter--when an option becomes more expensive, people will be less likely to choose it.

changes in personal costs and benefits generally fail to exert much impact on behavior.

if one individual gains from an economic activity, then someone else must lose, and in the same proportion.

if a good is free, its production will not consume valuable scarce resources.

The value of a good is

based on the cost of production.

Which of the following is most consistent with economizing behavior?

If watching television and going to the movies provide the same amount of satisfaction, when choosing between the two, it makes sense to choose the cheaper alternative.

Before voting, you should invest the time and energy to become fully informed on the issues and candidates.

If you derive the same satisfaction from going to the opera, attending the Super Bowl, and walking in the woods, it makes no difference which of the three you choose.

It never makes sense to hire someone to do something for you that you could do yourself.

The statement "violent crime has decreased in the last five years"

is positive because it is testable.

is obviously wrong, and therefore cannot be a positive statement.

is normative, since it can be answered by simply looking at the facts.

is not very interesting, because all normative issues are of little importance.

Which of the following represents a normative statement?

Economics is more difficult than history.

A decrease in price leads to an increase in quantity demanded.

The temperature outside is 90 degrees.

People will buy less butter at $$1.50 per pound than they will at $$ 1 per pound.

The difference between microeconomics and macroeconomics is that

microeconomics deals with narrowly defined units, while macroeconomics focuses on highly aggregated markets.

microeconomics involves mathematical relationships and macroeconomics is predominantly a verbal analysis.

microeconomics deals with the principle of scarcity and macroeconomics with the problem of poverty.

microeconomics is normative and macroeconomics positive.

If an economy is operating at a point inside the production possibilities curve,

its resources are being wasted.

the curve will begin to shift inward.

the curve will begin to shift outward.

This is a trick question because an economy cannot produce at a point inside the curve.

The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is

a larger output resulting from a more efficient use of resources.

an expansion in capital investment resulting from a reallocation of resources away from consumption.

greater equality of income resulting from an increase in the number of workers.

an increase in the profitability of business enterprises resulting from an increase in capital formation.

Three basic decisions must be made by all economies. What are they?

what will be produced; how goods will be produced; for whom goods will be produced

how much will be produced; when it will be produced; how much it will cost

what the price of each good will be; who will produce each good; who will consume each good

how the opportunity cost principle will be applied; if and how the law of comparative advantage will be utilized; whether the production possibilities constraint will apply

For most students attending state universities, the largest cost component of going to college is

the loss of current income because of attending college.

the cost of books and supplies.

Which of the following would be most likely to drop out of college before completing their degree?

a star baseball player that just received a $200,000 offer from a major league team.

a math major with a solid B average.

a physical therapy student who has just read about the fantastic job offers available to students with degrees in this area.

an economics major that wants to attend graduate school.

The opportunity cost of an action

is the highest-valued alternative that must be given up as the result of choosing an option.

measures the undesirable aspects of that action.

is the average of the total unhappiness (experienced by every person involved) derived from the action.

is objective, and it will be the same for all individuals.

The wages of house painters will tend to rise when

house painters can find higher paying alternatives for their labor.

more people recognize that house painters have very low incomes.

the alternative earning opportunities of house painters worsen.

the needs of house painters increase, perhaps as the result of an increase in the family size of house painters.

Which of the following will be most likely to cause an outward shift in the production possibilities curve?

development of an improved technological method of production

a decrease in the stock of physical capital

A production possibilities curve graphically represents the maximum quantities of two products produced when all resources in the economy are efficiently utilized. An economy that operates within this production possibilities curve

is utilizing its available resources inefficiently.

lacks the necessary technology to produce efficiently.

lacks the resources to produce the two goods efficiently.

is pricing the goods below their market value.

A production possibilities curve indicates that when resources are being used efficiently, then

you can only produce more of one good if you produce less of another good.

you can only produce more of one good if you lower its price.

you can only produce more of one good if you produce more of another good.

you can only produce more of one good if you raise its price.

AP Microeconomics Multiple Choice Questions

Authored by Mallory Taylor

Other

Professional Development

Used 4+ times

AP Microeconomics Multiple Choice Questions

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

64 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Economics is a social science that

is primarily concerned with money

is primarily concerned with how resources are used

relies solely on the scientific method for analysis

is primarily concerned with maximizing spiritual well-being

is purely normative

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Macroeconomics focuses on

government and its laws that affect commerce

individuals and their resource use

corporations and their production levels

the resource use of the entire nation

money

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Given the table below what is the opportunity cost of wheat in France? Labor hours needed to produce a unit of: Country Wheat Cloth France 5 10 England 20 20

½ cloth

½ wheat

2 cloth

2 wheat

¼ cloth

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Given the table below, which statement is true? Labor hours needed to produce a unit of: Country Wheat Cloth France 5 10 England 20 20

England has the absolute advantage in both products

France should specialize in and export wheat while England should specialize in and export wheat

France has the comparative advantage in wheat

England has the comparative advantage in wheat

France has the absolute advantage in wheat while England has the absolute advantage in cloth

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following statements is positive?

An economy that produces more butter than guns is better off than an economy that produces more guns than butter

Nations should concentrate their resources on producing wholesome consumer goods as opposed to the weapons of war

The production possibilities frontier is concave to the origin because of the law of increasing costs.

Nations ought to devote at least some of their resources to national defense.

Nations would do better by producing toward the middle of their production possibilities frontiers as opposed to the extreme points near the axes.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The primary focus of microeconomics is

families and how they make money.

firms and how they make profits.

individual units within the overall economy.

government.

small countries.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Economists use the term “capital” to mean

money.

plant and equipment.

where the central government is located.

the center of the economy.

a major idea.

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

62 questions

CONTOH SOAL

Quiz

•

Professional Development

60 questions

DIP CBT-2

Quiz

•

Professional Development

69 questions

HVAC FC 01

Quiz

•

Professional Development

60 questions

SFDC Admin Practice Test 1

Quiz

•

Professional Development

60 questions

Đề 4

Quiz

•

Professional Development

66 questions

AI Quiz

Quiz

•

Professional Development

64 questions

tkd korean terms

Quiz

•

Professional Development

60 questions

Overall programming tests

Quiz

•

Professional Development

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

29 questions

Alg. 1 Section 5.1 Coordinate Plane

Quiz

•

9th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

11 questions

FOREST Effective communication

Lesson

•

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

Discover more resources for Other

15 questions

LOTE_SPN2 5WEEK3 Day 2 Itinerary

Quiz

•

Professional Development

20 questions

Black History Month Trivia Game #1

Quiz

•

Professional Development

20 questions

90s Cartoons

Quiz

•

Professional Development

42 questions

LOTE_SPN2 5WEEK2 Day 4 We They Actividad 3

Quiz

•

Professional Development

6 questions

Copy of G5_U6_L3_22-23

Lesson

•

KG - Professional Dev...

20 questions

Employability Skills

Quiz

•

Professional Development

AP Microeconomics Multiple Choice Questions

Economics is a social science that

Macroeconomics focuses on

Given the table below what is the opportunity cost of wheat in France? Labor hours needed to produce a unit of: Country Wheat Cloth France 5 10 England 20 20

Given the table below, which statement is true? Labor hours needed to produce a unit of: Country Wheat Cloth France 5 10 England 20 20

Which of the following statements is positive?

The primary focus of microeconomics is

Economists use the term “capital” to mean

Land refers to

What you give up to pursue another alternative is known as

Given the following table (combinations that can be produced using resources fully and efficiently) Apples | Oranges 0 | 20 7 | 10 14 | 0 the opportunity cost of apples is

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Other