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WorksheetsAP Micro Review Exam
Total questions: 25
Worksheet time: 25mins
A decrease in the price of machinery will likely have which result?
The demand for labor will increase.
The demand for labor will decrease.
The supply of machinery will decrease.
Firms will hire to the point where MRP = W.
What will most likely result if the price of apples decreases?
The quantity of apples demanded will increase.
The supply of apples will decrease.
The demand for apples will increase.
The quantity of apples supplied will decrease.
Which of the following could explain the movement from point B to point A?
An increase in the price of the good
An increase in consumer income
An increase in the price of a complementary good
An increase in the price of a substitute good
All of the following are factors that contributed to Demand 1 shifting to Demand 2 EXCEPT
an increase in consumer income
a decrease in price of a substitute good
an increase in the number of buyers in a market
consumers expect the price of the good to increase in the future
Deirdre has one free hour to practice the piano for an upcoming school concert or work at the library for $7 per hour or babysit her neighbor’s 12-year-old son for $10 per hour. She chooses to practice the piano. What is the opportunity cost of practicing the piano?
The opportunity cost would be $17 because she chose not to participate in these activities.
Without knowing the marginal value of practicing the piano, there is no way of knowing the true opportunity cost.
The opportunity cost would be $20 because it is necessary to calculate one additional hour of babysitting to make it profitable.
The opportunity cost would be $10 because it would be the most profitable alternative.
The opportunity cost would be $3 because it is the monetary difference between two alternative choices.
Which two points would best represent economic
growth?
From A to D
From D to C
From A to B
From E to C
From E to B
A country is said to have a comparative advantage
over another country when
it can produce a good at a lower opportunity cost than another country
it can produce a good using fewer resources per unit
of output than another country
there is a higher degree of specialization and division of labor
compared to another country
when comparing each country’s production possibilities frontiers, one country is operating at maximum efficiency and
output
one country’s production possibilities frontier is shifted farther to the right compared to another country’s production possibilities frontier
If there is an earthquake which destroyed the buildings and crops in a country, the Production Possibility Curve will shift
To the left
To the right
Parallel to the right
Parallel to the left
Point D can be achievable in the long run.
True
False
Not enough information
Are you kidding me
What is the opportunity cost of moving from point B to C on the curve?
30 tons of wheat
30 tons of steel
5 tons of wheat
5 tons of steel
What is the primary focus of microeconomics?
A) The study of individual markets and decision-making units
B) The study of the economy as a whole
C) The study of international trade
D) The study of government policies
Which of the following is an example of a positive economic statement?
A) The government should reduce taxes to increase disposable income
B) Inflation is more harmful than unemployment
C) A decrease in supply will lead to an increase in price, ceteris paribus
D) The government ought to provide free healthcare
What does the law of demand state?
A) As the price of a good increases, the quantity demanded increases
B) As the price of a good decreases, the quantity demanded increases
C) As the price of a good increases, the supply decreases
D) As the price of a good decreases, the supply increases
In a perfectly competitive market, what is the relationship between price and marginal cost?
A) Price is greater than marginal cost
B) Price is less than marginal cost
C) Price equals marginal cost
D) Price is unrelated to marginal cost
What is the opportunity cost of attending college?
A) The cost of tuition and books
B) The income foregone by not working
C) The time spent studying
D) The social experiences missed
Which of the following best describes a monopoly?
A) A market with many sellers and one buyer
B) A market with one seller and many buyers
C) A market with many sellers and many buyers
D) A market with one seller and one buyer
What is the effect of a price ceiling set below the equilibrium price?
A) Surplus
B) Shortage
C) No effect
D) Increase in supply
Which of the following is a characteristic of a public good?
A) Excludable and rival in consumption
B) Non-excludable and non-rival in consumption
C) Excludable and non-rival in consumption
D) Non-excludable and rival in consumption
What is the primary goal of a firm in a competitive market?
A) Maximize revenue
B) Maximize profit
C) Maximize market share
D) Maximize production
Which of the following is an example of a normative economic statement?
A) The unemployment rate is 5%
B) Inflation is rising
C) The government should increase the minimum wage
D) The GDP grew by 2% last year
What is the result of a subsidy given to producers?
A) Decrease in supply
B) Increase in supply
C) Decrease in demand
D) Increase in demand
Which of the following best describes the concept of elasticity?
A) The responsiveness of quantity demanded to a change in price
B) The responsiveness of supply to a change in demand
C) The responsiveness of price to a change in quantity supplied
D) The responsiveness of demand to a change in supply
What is the effect of an increase in consumer income on the demand for a normal good?
A) Demand decreases
B) Demand increases
C) Supply decreases
D) Supply increases
Which of the following is a factor of production?
A) Money
B) Labor
C) Government policy
D) Technology
What is the primary function of money in an economy?
A) Medium of exchange
B) Store of value
C) Unit of account
D) All of the above
