WorksheetsAP Macroeconomics Lessons
Total questions: 15
Worksheet time: 15mins
Which of the following is true for all economies regardless of their economic system?
Every economy must determine what to produce and how it produces goods and services
Every economy must find a way to distribute income equally
Every economy must find ways to privatize markets to maximize efficiency
Every economy must prevent unemployment through government intervention
Every economy must open free trade with other economies
Which of the following is the best example of physical capital?
A $100,000 business loan from a bank
A business hiring 10,000 workers at a factory
A truck for a delivery company
An oven for a family of four
An increase in construction jobs
When making a decision, the next best alternative is called
The production possibilities
The opportunity cost
Scarcity
The absolute advantage
Efficiency
Which of the following must be true if an individual's next best alternative to going to the beach is studying for an economics exam?
They will decide to study for the exam
The opp. cost is seeing their friends at the beach
The person prefers playing volleyball at the beach to studying for the exam
The Opp Cost of going to the beach is all the other things they could have done
The Opp Cost of going to the beach is being better prepared for the exam.
If the Production possibilities curve (PPC) is concave from the origin (bowed out), then economists say that
Resources are scarce in the economy
Resources are not equally suited for the production of both goods
Economic growth is occurring in the economy
Resources are being inefficiently used in the economy
Resources are equally suited for the production of either good
A point outside the PPC would represent
An efficient use of resources
Future output once producers become more efficient
An inefficient use of resources
A combination that cannot be achieved due to scarcity
Full employment of resources in the economy
An increase in which of the following would cause an outward shift of the PPC for consumer goods and capital goods?
An increase in the demand for consumer goods
An increase in taxes on consumers
A decrease in unemployment
An increase in the resources to produce capital goods
The efficient production of consumer goods
Claire is an economist who can earn $150 per hour. She is also an excellent chef who can cook three times as fast as the best chef in the area, whose hourly wage is $20 per hour. Which of the following is a correct economic statement?
Claire has a comparative advantage in economics so she should specialize in econ and hire the chef to cook for her
Claire has an absolute and comparative advantage in both econ and cooking, so she should work as an economist and as a chef
claire is 3 times faster than any chef so she could give up econ and be a chef
when chefs work for economists, they should charge $150 per hour instead of $20 per hour
Because claire is an excellent chef, when the best chef works for claire, she should pay the chef only 1/3 the hourly rate.
If Mike can make 2 surfboards per hour or 10 bikes per hour and Joe can produce 4 surfboards per hour and 12 bike. Which of the following is true?
Mike has an absolute adv in the production of surfboards
mike's Opp Cost for producing one bike is five surfboards
joe has comparative adv. in the production of both surfboards and bikes
mike has a comparative adv. in the production of bikes
joe's Opp Cost for producing one surfboard is 3 bikes
Atlantis can produce either 2 tons of grain or 4 cars with 10 units of labor. Zoltar can produce either 5 tons of grain or 25 cars with 10 units of labor. Based on this information, which of the following is true:
Atlantis has an absolute adv. in the production of grain, while Zoltar has a comparative adv. in the production of grain
Atlantis has a comparative adv. in the production of grain, while Zoltar has a comparative adv. in the production of cars
Atlantis has an absolute adv. in the production of grain, while Zoltar has a comparative adv. in the production of cars.
Atlantis has a comparative disadvantage in the production of both goods.
Niether country has a comparative adv in the production of either good
The opportunity cost of increasing production from 7 to 9 trucks is
Scarcity
2 boats
2 trucks
3 boats
The opportunity cost of increasing production from 4 to 7 boats is
1 boat
2 boats
2 trucks
3 trucks
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the comparative advantage in producing trucks and what is their opportunity cost?
Japan, 1/3 airplane per truck
US, 1/2 airplane per truck
US, 2 airplanes per truck
Japan, 3 airplanes per truck
The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.
Which country has the comparative advantage in producing airplanes and what is their opportunity cost?
Japan, 1/3 trucks per airplane
US, 1/2 trucks per airplane
Japan, 3 trucks per airplane
US, 2 trucks per airplane
What does point B represent?
Production at the country's maximum potential
Production is less than the country's minimum potential
Production is greater than the country's maximum potential
Production at greater than the country's minimum potential
