AP Econ Unit 1 Practice

1.

Multiple Choice

30 sec

1 pt

Economics is the study of...

how businesses produce goods and services

the efficient use of scarce resources

the equitable distribution of wealth

the printing and circulation of money

2.

Multiple Choice

30 sec

1 pt

"There is no such thing as a free lunch means?"

marginal benefit is greater than marginal cost

businesses can increase market share by offering free lunch

scarce resources have alternative uses or opportunity costs

consumers often ask for free lunch

3.

Multiple Choice

30 sec

1 pt

A major principle of economic thinking is

weighting marginal benefit vs.marginal cost

equating self interest

validity of normative economics

recognizing the abundance of economic resources

4.

Multiple Choice

30 sec

1 pt

The lower the price of the product, the greater the quantity consumed is based on

post hoc fallacy

ceteris parabis

law of demand

marginal utlity

5.

Multiple Choice

30 sec

1 pt

The production of more goods, the development of new technology, and the development of a higher standard of living are associated with what economic goal

Economic Equity

Economic Efficiency

Full Employment

Economic Growth

6.

Multiple Choice

30 sec

1 pt

Which economic goal is associated with the idea we want to get the maximum benefit at the minimum cost from the limited productive resources

Economic Security

Economic Freedom

Economic Growth

Economic Efficiency

7.

Multiple Choice

30 sec

1 pt

When two economic goals are in direct conflict with one another

its impossible to quantify both goals

there is a trade off between goals

the two goals are not accepted as important

the attainment of one goals results in the additional attainment of the other goal

8.

Multiple Choice

30 sec

1 pt

When we look at the aggregate of the economy the analysis at the level would be called

microeconomics

positive economics

macroeconomics

normative economics

9.

Multiple Choice

30 sec

1 pt

Which would be studied in microeconomics

the output of the entire economy

total number of workers employed by the entire economy

general price levels in the US

the output and price of wheat in the US

10.

Multiple Choice

30 sec

1 pt

Which of the following is a normative economic statement

the CPI rose 5.6% last month

the unemployment rate of 6.8% is too high

the average loan IR is 8.6%

the economy grew at an average rate of 2.6%

11.

Multiple Choice

30 sec

1 pt

If a farmer grows a large crop one year, he or she will likely receive more income, therefore, if all farmers grew larger crops they would likely receive more income is an example of

after this, therefore b/c of this

fallacy of composition

economic bias

loaded terminology

12.

Multiple Choice

30 sec

1 pt

more education is associated with more income and you conclude that more income leads to more education, this is an example of

correlation and causation

fallacy of composition

post hoc fallacy

loaded terminology

13.

Multiple Choice

30 sec

1 pt

What is true of a PPC curve that is concave to the origin

resources are split equally between the two products

more than two products can be analyized

prices of the two products can be the same

as more of one is produced, more of the other good is produced

14.

Multiple Choice

30 sec

1 pt

The most fundamental economic problem is

Scarcity

Taxation

Unemployment

Freedom

15.

Multiple Choice

30 sec

1 pt

If a country has a comparative advantage over another country it is said that

Country A can produce more than Country B

Country A should not trade with Country B

Country A can produce at a lower opportunity cost than Country B

Country A and Country B have no direct relationship to each other

16.

Multiple Choice

20 sec

12 pts

What does this curve represent?

demand

supply

equilibrium

shortage

17.

Multiple Choice

20 sec

1 pt

What does this curve represent?

supply

equilibrium

demand

surplus

18.

Multiple Choice

30 sec

1 pt

An increase in the price of aspirin is likely to be paired with a(n) ___________________ in the demand for Tylenol because the two goods are __________________.

increase; complements

increase; substitutes

decrease; complements

decrease; substitutes

19.

Multiple Choice

1 min

1 pt

If the price of printers goes down, what happens in the market for ink cartridges?

Supply increases.

Supply decreases.

Demand increases.

Demand decreases

20.

Multiple Choice

30 sec

1 pt

Printers and ink cartridges are typically purchased together. Economists would call these

Stubstitues

Complements

Elastic

Inelastic

21.

Multiple Choice

20 sec

1 pt

Assume the image is showing the market for apples. Which of the headlines could indicate the pictured shift is occurring in the market?

Pesticides on apples linked to mouth cancer.

Storms destroy apple orchards.

An apple a day really does keep the doctor away.

New genetic strain leads to apple trees that produce twice as many apples.

22.

Multiple Choice

1 min

1 pt

The following is a factor that will not cause the demand curve to shift:

Advertising

Population

Price

Consumer expectations

23.

Multiple Choice

30 sec

1 pt

A change in quantity demanded is shown

at various points on the demand curve

with a new demand curve drawn above or below the original demand curve

with a vertical line

24.

Multiple Choice

30 sec

1 pt

Consuming more of one good because of a change in price of another good is known as the

income effect

substitution effect

elasticity effect

demand effect

25.

Multiple Choice

30 sec

1 pt

If a consumer knows that a product will be going on sale this week, how will his/her CURRENT demand be affected?

it will go up

it will go down

it will stay the same

what does this have to do with the price of tea in China?

26.

Multiple Choice

30 sec

1 pt

A table that lists the quantity of a good that a single person will buy at each price in a market.

demand schedule

market demand schedule

elasticity chart

supply and demand graph

27.

Multiple Choice

30 sec

1 pt

Generally speaking, the lower the price, the greater the quantity demand.

True

False

28.

Multiple Choice

20 sec

1 pt

For the law of demand, as price rises, what happens to quantity demanded?

it goes up

it goes down

it stays the same

it is not effected

29.

Multiple Choice

20 sec

1 pt

For the law of supply, as price rises, what happens to quantity supplied?

it goes up

it goes down

it stays the same

it is not effected

30.

Multiple Choice

20 sec

1 pt

If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the ___________ curve for basketball shoes to shift ____________.

demand.........right

demand.........left

supply.......right

supply....... left

31.

Multiple Choice

20 sec

1 pt

If Michael Jordan did advertisements for Steak and Shake, this would cause the ___________ curve for Steak and Shake to shift ____________.

demand.........right

demand.........left

supply.......right

supply....... left

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