AP Micro questions for AP Macro Unit 1

Front

The basic economic problem of all countries is the existence of

Back

limited resources and unlimited wants

Front

Assume that popcorn and movie attendance are complements and that Salty Concession grows corn suitable for popping. Mr. Concession will most likely sell a greater quantity of popping corn at a higher price if which of the following occurs? Options: the wages of farm workers and movie theater employees increase, a technological improvement results in less expensive and more efficient harvesting of corn, the introduction of new fat-free potato chips provides new competition in the snack-food market, the release of three summer movies set records for movie attendance, new government regulations force movie theaters to hire more security guards at each theater.

Back

the release of three summer movies set records for movie attendance

Front

In a perfectly competitive market, which shifts in the supply and demand curves will definitely cause both the equilibrium price and quantity to decrease? (supply curve/demand curve) Options: shifts to the left/shifts to the left, shifts to the left/no shift, shifts to the right/shifts to the right, no shift/shifts to the right, no shift/shifts to the left

Back

no shift/shifts to the left

Front

Which of the following events will cause the demand curve for hamburgers to shift to the right?
an increase in the price of pizza, a substitute for hamburgers
an increase in the price of french fries, a complement to hamburgers
an increase in the price of hamburgers
a decrease in the price of hamburgers
a decrease in the cost of producing hamburgers

Back

an increase in the price of pizza, a substitute for hamburgers

Front

A country can consume beyond its present production possibilities curve when it trades with other countries, thus taking advantage of different opportunity costs.

Back

trades with other countries, thus taking advantage of different opportunity costs

Front

Which of the following statements is true according to the chart showing the number of resource units the countries Gamma and Omega must use to produce one unit of food or one unit of clothing?

Gamma: Food 10 resource units, Clothing 9 resource units
Omega: Food 5 resource units, Clothing 3 resource units

Back

Trade should take place with Gamma specializing in food production and Omega specializing in clothing production.

Front

The opportunity cost of increasing the production of good Y from 0 to 200 is

Back

20 units of X

Front

In the short run, a decrease in production costs of a product will shift

Back

only the supply curve to the right

Front

The supply curve for automobiles will shift to the left in response to: an increase in the efficiency of robot technology, an increase in wages in the automobile industry, a decrease in the number of consumers purchasing automobiles, a decrease in consumers' income.

Back

an increase in wages in the automobile industry

Front

A professor hires two aides assigning them the tasks of reading student papers and of typing lecture notes on a computer. One of the aides, Ben, can read 1 page of a student paper per minute or type 50 words of lecture notes per minute, and the other aide, Ann, can read 3 pages of a student paper per minute or type 60 words of lecture notes per minute. Which of the following statements is true?

Back

Ann has a comparative advantage in reading student papers, and Ben has a comparative advantage in typing lecture notes.