WorksheetsAP Macroeconomics Unit 1: Basic Economic Concepts
Total questions: 10
Worksheet time: 8mins
An economy is operating at at a point insides its production possibilities curve (PPC). Which of the following will most likely cause the economy to move toward the current PPC in the short run?
A decrease in government spending
A decrease in inflation
An increase in human capital
An increase in employment
An increase in imports
Assume that the market for bottled water is in equilibrium. If both the supply of and the demand for bottled water decrease, what will be the effect on equilibrium price and quantity?
Price: Decrease
Quantity: Decrease
Price: Decrease
Quantity: Increase
Price: Increase
Quantity: Decrease
Price: Increase
Quantity: Indeterminate
Price: Indeterminate
Quantity: Decrease
The table shows the number of hours needed to produce one bushel of soybeans and one bushel of rice in each of two countries.
The U.S. has both the absolute and comparative advantage in producing soybeans.
Monaco has both the absolute and comparative advantage in producing soybeans.
The U.S. has both the absolute and comparative advantage in producing rice.
Monaco has both the absolute and comparative advantage in producing rice.
Monaco has the absolute advantage in producing soybeans and the comparative advantage in producing rice.
According to the theory of comparative advantage, a good should be produced where
its explicit costs are least
its opportunity costs are least
the cost of real resources used is least
production can occur with the greatest increase in employment
production can occur with the least increase in employment
Which of the following would cause a leftward shift of the production possibilities curve?
An increase in unemployment
An increase in inflation
An increase in capital equipment
A decrease in consumer demand
A decrease in working-age population
The opportunity cost of producing an additional unit of product J is
the dollar value of resources used to make the extra unit of product J
the retail price paid for product J
the wholesale price of product J
the amount of product K that could have been produced with the resources used to make the unit of J
the profit that was earned from producing product J
Who has the absolute advantage in trucks?
USA
Japan
What are the factors of production?
Land
Securities
Capital
Entrepreneurship
Labor
What are the shifters of the Production Possibilities Frontier?
Resources
Demand
Trade
Price Level
Technology
Which of the following would cause Economic Growth to show on the PPC?
Decrease in trade
Advancements in technology
Increase in employment
Deflation
