Macro Unit 1- Practice Questions #2

The video tutorial covers practice questions on economic concepts such as absolute and comparative advantage, opportunity cost, specialization, and supply and demand. It provides strategies for solving problems, including drawing graphs and using quick calculations. The tutorial emphasizes understanding key economic principles and applying them to various scenarios.

Which country has an absolute advantage in the production of wheat?

• Brazil

• Neither has an advantage

• Peru

• Both have the same advantage

What is the opportunity cost for Brazil to produce one ton of wheat?

• 1.5 tons of sugar

• 1 ton of sugar

• 1/2 ton of sugar

• 2 tons of sugar

Who should specialize in the production of sugar based on comparative advantage?

• Brazil

• Peru

• Both should produce sugar

• Neither should produce sugar

In an input question, who has an absolute advantage in washing dishes?

• Neither has an advantage

• Both have the same advantage

• Kevin

• Hannah

What is the best strategy for Hannah and Kevin to minimize total time spent on chores?

• Hannah washes dishes, Kevin vacuums

• Neither does any task

• Kevin washes dishes, Hannah vacuums

• Both do both tasks

Which of the following will not change the demand for apples?

• Consumer preference for apples

• Health benefits of apples

• Increase in consumer income

• Change in apple prices

What happens to the supply curve when the price of a key resource increases?

• Shifts to the right

• Shifts to the left

• Remains unchanged

• Becomes vertical

What is the effect of a binding price floor on the market?

• Price decreases, quantity demanded increases

• Price decreases, quantity supplied increases

• Price remains the same, quantity supplied decreases

• Price increases, quantity demanded decreases

If a price ceiling is removed, what happens to the price and quantity in the market?

• Price decreases, quantity decreases

• Price increases, quantity increases

• Price increases, quantity decreases

• Price decreases, quantity increases

What is the result of an increase in demand and a decrease in supply?

• Price and quantity both decrease

• Price decreases, quantity increases

• Price increases, quantity is indeterminate

• Price is indeterminate, quantity decreases