Transcript unit 1 review game

AP Macroeconomics
MR. GRAHAM
Unit One Review
Basic Economic Concepts
Which of the following is an example of a
resource?
I. Petroleum
II. A factory
III. A cheeseburger dinner
1.
2.
3.
4.
5.
I only
II only
III only
I and II only
I, II and III
Which of the following situations represent(s)
resource scarcity?
I. Rapidly growing economies experience increasing
levels of water pollution.
II. There is a finite amount of petroleum in the
physical environment.
III. Cassette tapes are no longer being produced.
1.
2.
3.
4.
5.
I only
II only
III only
I and II only
I, II and III
Suppose that you prefer reading a book you
already own to watching TV and that you prefer
watching TV to listening to music. If these are
your only three choices, what is the opportunity
cost of reading?
1.
2.
3.
4.
5.
watching TV and listening to music
watching TV
listening to music
sleeping
the price of the book
Which of the following statements is/are
normative?
I. The price of gasoline is rising.
II. The price of gasoline is too high.
III. Gas prices are expected to fall in the near future.
1.
2.
3.
4.
5.
I only
II only
III only
I and II only
I, II and III
Which of the following questions is
studied in microeconomics?
1. Should I go to college or get a job after I
graduate?
2. What government policies should be adopted to
promote employment in the economy?
3. How many people are employed in the economy
this year?
4. Has the overall level of prices in the economy
increased or decreased this year?
5. What determines the overall salary levels paid to
workers in a given year?
During the recession phase of a
business cycle, which of the following
is likely to increase?
1.
2.
3.
4.
5.
The unemployment rate
The price level
Economic growth rates
The labor force
Wages
The labor force is made up of
everyone who is
1.
2.
3.
4.
5.
employed.
old enough to work.
actively seeking work.
employed or unemployed.
employed or capable of working.
A sustained increase in aggregate
output over several decades represents
1.
2.
3.
4.
5.
an expansion.
a recovery.
a recession.
a depression.
economic growth.
Which of the following is the most
likely result of inflation?
1.
2.
3.
4.
5.
falling employment
a dollar will buy more than it did before
people are discouraged from holding cash
price stability
low aggregate output per capita
The other things equal assumption
allows economists to
1. avoid making assumptions about reality.
2. focus on the effects of only one change at a
time.
3. oversimplify.
4. allow nothing to change in their model.
5. reflect all aspects of the real world in their
model.
Which point(s) on the graph represent
efficiency in production?
A.
B.
C.
D.
E.
A and G
B, C, D, E, F
A, B, C. D, E, F, G
A, B, C, D, E, F, G and S
A, B, C, D, E, F, G, S and R
For this economy, an increase in the quantity of
digital cameras produced without a
corresponding decrease in the quantity of
pocket PCs produced
A. cannot happen because there is
always an opportunity cost.
B. is represented by a movement
from point S to point A.
C. is represented by a movement
from point F to point E.
D. is represented by a movement
from point S to point D.
E. is only possible with an increase
in resources or technology.
An increase in unemployment could be
represented by a movement from
point
A.
B.
C.
D.
E.
G to F
B to A
F to R
D to S
S to D
Which of the following might allow
this economy to move from point D to
point R?
A. more workers
B. discovery of new
resources
C. building new factories
D. technological advances
E. all of the above
Use the graph to determine which
country has an absolute advantage in
producing each good.
A.
B.
C.
D.
E.
Absolute advantage
Absolute advantage
in wheat production
in textile production
Country A
Country A
Country B
Country B
Country A
Country B
Country A
Country A
Country B
Neither
For country A, the opportunity cost of
a bushel of wheat is
A.
B.
C.
D.
E.
½ units of textiles
⅔ units of textiles
1⅓ units of textiles
1½ units of textiles
2 units of textiles
Use the graph to determine which
country has a comparative advantage
in producing each good
Comparative advantage
in wheat production
A.
B.
C.
D.
E.
Country A
Country A
Country B
Country B
Country A
Comparative advantage
in textile production
Country B
Country A
Country A
Country B
Neither
If the two countries specialize and
trade, which of the choices below
describes the countries’ imports?
A.
B.
C.
D.
E.
Import Wheat
Import Textiles
Country A
Country A
Country B
Country B
Neither
Country A
Country B
Country B
Country A
Country B
What is the highest price Country B is
willing to pay to buy wheat from
Country A?
A.
B.
C.
D.
E.
½ units of textiles
⅔ units of textiles
1 unit of textiles
1½ units of textiles
2 units of textiles