WorksheetsAP Macro Fundamental Economics
Total questions: 40
Worksheet time: 28mins
Traditional economy
Mixed economy
The economic problem is that
resources are limited and wants are limited.
resources are unlimited and wants are limited.
resources are limited and wants are unlimited.
resources are unlimited and wants are unlimited.
The opportunity cost of Australian households moving away from coal-powered energy to solar-powered energy includes (i) the loss of jobs in the coal industry, (ii) a cleaner environment, (iii) reduced coal production.
(i), (ii) and (iii)
(ii) and (iii)
(iii) only
(i) and (iii)
A firm operating at 'X' produces 70 whips and 60 saddles. It changes production to 'Y' producing 20 whips and 90 saddles. The opportunity cost of this production change is
20 whips
30 saddles
50 whips
60 saddles
The production possibility curve shows
alternative combinations of two goods that an economy is capable of producing.
the actual levels of production of two goods that the economy is achieving.
alternative combinations of productive resources that can be used to produce two goods.
the total value of two goods produced in one time period.
Which country has the comparative advantage in producing trucks and what is their opportunity cost?
Which factor is most commonly associated with highly skilled jobs?
Price floors
capital goods
opportunity costs
technological abilities
What does a production possibilities curve show?
demand for two goods
the cost of producing to two goods
the trade-off faced by producers of two different goods
the amount of resources used to produce two goods
How will producers use a production possibilities curve?
to determine opportunity of producing two goods
to determine the profit that can be made by producing two goods
to determine the number of inputs that are required to produce two goods
to determine the number of employees needed to produce two goods
The main role of the government in a command economic system is
promoting business entrepreneurship
encouraging private markets
adopting import quotas to enforce
allocating raw materials for production use
Which of these best explains when rational decisions occur in economics
when marginal costs are small
when marginal benefits decrease over time
when marginal benefits are greater than or equal to marginal costs
when marginal costs increase and marginal benefits remain constant
What is always associated with an economic decision?
an opportunity cost
a tariff rate
monetary cost
exchange rate
Allen is working a summer job to earn money for college in the fall. Which two activities will most help him reach his goal?
saving money
getting a loan
reducing spending
managing time
increasing expenses
Country X has a lower opportunity cost of producing apples than Country Y. Based on the information provided what is the most reasonable conclusion about these countries?
Country Y should specialize in producing apples
Country X should specialize in producing apples
Country Y has an absolute advantage over Country X in producing apples
Country X has an absolute advantage over Country Y in producing apples
Why do investments in human capital lead to a higher standard of living?
Greater productivity leads to a higher income
Higher debt leads to more income redistribution
More specialization leads to greater price stability
Increased government spending leads to more competition
Country X and Country Y can produce either beef or wheat but not both. Country X produces beef and trades it with Country Y for wheat. What economic situation exists to allow both countries to enjoy both products?
trade embargo
balance of trade
absolute advantage
comparative advantage
