AP Macro Unit 1 Review

Front

Which of the following is likely to increase the demand for peanut butter? Options: Fewer children in the population, News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months., A big increase in the price of jelly., A report from the Surgeon General of the United States that eating peanut butter makes people nutty.

Back

News that insects have destroyed much of the peanut crop and that there will be less peanut butter on the shelves in three months.

Front

In economics, a shortage of a product occurs when: the product's price falls below its market-clearing level, the product's market-clearing level reduces overall demand, the people who buy the product consume more than they need, the businesses producing the product become less efficient

Back

the product's price falls below its market-clearing level

Front

Which country has the comparative advantage in producing trucks and what is their opportunity cost? The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.

Back

Japan, 1/3 airplane per truck

Front

When a point lies inside of the PPF it can be said that

Back

Resources are under employed

Front

What does the Production Possibilities Frontier represent?

Back

The tradeoffs between possible production levels for two goods.

Front

The resource that includes equipment, machinery, buildings, and tools.

Back

Capital

Front

Economics may best be defined as the:

Back

social science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants.

Front

Which of the following will not produce an outward shift of the production possibilities curve?
an upgrading of the quality of a nation's human resources, the reduction of unemployment, an increase in the quantity of a society's labor force, the improvement of a society's technological knowledge

Back

the reduction of unemployment

Front

At which point will this economy NOT be able to produce, it is currently unattainable? A, B, C, E

Back

E

Front

Which of the following might shift a nation's production possibilities curve inward?
Options:
improved technology.
devastation by war.
improved health care.
a business downturn in which unemployment temporarily rises.

Back

devastation by war.