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Entrance ticket - 1.3 AP Micro

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The primary focus of microeconomics is

a)

Families and how they make money

b)

Firms and how they make profits

c)

Individual units within the overall economy

d)

Government

e)

Small countries

2.

Economist use the term "Capital" to mean

a)

Money

b)

Plant and equipment

c)

Where the centra government is located

d)

The center of the economy

e)

A major idea

3.

What you give up to pursue another alternative is known as

a)

Capital

b)

Land

c)

Money cost

d)

The price of the product

e)

Opportunity cost

4.

Given the following table (combinations that can be produced using resources fully and efficient) the opportunity cost of apples is:

a)

10/7 oranges

b)

7/10 oranges

c)

10/7 apples

d)

7/10 apples

e)

70 percent

5.

Given the following table (combinations that can be produced using resources fully and efficiently) the opportunity cost of soup is

a)

5 nuts

b)

5 soup

c)

20 percent

d)

500 percent

e)

Not constant

6.

PPF are concave to the origin because

a)

Of efficiencies in the economy

b)

Of opportunity cost

c)

Of the law of increasing costs

d)

Of constant opportunity costs

e)

The extreme points are not as well stablished

7.

When opportunity cost is constant across all production levels, the production possibilities frontier is:

a)

Concave to the origin

b)

Convex to the origin

c)

Undefined

d)

Shifted

e)

A straigth diagonal line sloping downward from left to right

8.

When an economy produces a combination of goods that lies on the PPF,

a)

Resources are being used fully and efficiently

b)

Prices are constant

c)

Opportunity cost is constant

d)

Resources will never be depleted

e)

Prices will rise

9.

The law of increasing costs

a)

Does not applyy to guns and butter

b)

Is the result of resources not being perfectly adaptable between the production of two goods

c)

Implies that prices will rise when the costs of making agood rise

d)

Causes the PPF be a straight line

e)

Implies that opportunity cost will rise as production levels fall

10.

Land refers to

a)

All productive resources

b)

All natural resources

c)

Farmland only

d)

Real state

e)

Chattels