AP Econ 9 Weeks Practice Test

The best definition of Opportunity Cost is…

• The value of time, money, goods and services given up when making economic choices
• The total amount of value a resource is worth
• The amount of resources used when producing goods and services
• The chance of picking a better option when making economic choices

The best definition of scarcity is...

• The wants and needs individuals try to fulfill
• The effects of changes in the economy
• The causes for changes in the economy
• The lack of resources used to meet wants and need

Land refers to…

• Farmland only
• Real estate
• All productive resources
• All natural resources

Capital refers to…

• Factory plant and equipment
• Money made from business dealings
• Washington D.C.
• The work people do to produce goods and services

When it comes to comparing defense and non defense goods on the production possibilities curve, what does point C represent?

• A combination that is impossible for this country to attain under current conditions
• A combination that can be attained only if all resources are used
• A combination that can be attained only if technological advancement occurs
• A combination that can be attained without using all the country’s resources

What does point F represent?

• Limiting use of available resources
• Using all resources available today
• Introducing new technologies
• Inefficient use of resources available

An economic system which thrives on transactions between consumers and producers is known as a ____________.

• market economy
  
• command economy
• global economy
• traditional economy

In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners?

• corporation
• partnership
• sole proprietorship
• franchise

In economic terms, when you get a college degree you have increased your...

• product market value
• human capital
• future prospects
• income level

What do households provide to the business sector?

• Time
• Wages
• Resources
• Goods and services