1.Supply curves follow the law of supply. Positively related Indirectly related
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1.Supply curves follow the law of supply. Positively related Indirectly related Unrelated Negatively related 2.Scarcity means? Resources are limited but consumption goods are not. Opportunity cost are not always involved. Atleast one person cannot obtain all they want of a good. Consumption is limited. 3.Production possibilities illustrate which one of the following concepts? To gain more of good you must give some quantity of another good. The combinations of resources and technology that is best for society is optimized. The preference of society determine supply and demand. Opoortunity costs are decreased as more good are produced. 4.Which of the following cause an increase in deman? The price of an input decreases. The price of a substitute in production rises. The price of a substitute good increases. Population decreases. 5.To reach a production point beyond production possibilities curves, which of the following must happen. The total income of the population must increase. The demands for goods and services must increase Production needs to become more inefficient The level of resources and/or technology available must increase. 6.Microeconomics Is more organized than macroeconomics. Focuses only on firm behavior. Focuses on understanding the action of individual consumers, firms, and the government. Focuses on understanding the economy as a whole. 7.Which of the following is the only produced fact of production. Entrpeneurship Land Labor Capitol 8.Marginal opportunity cost increase because. Resources are not specialized. To few resources are devoted to producing the good Some resources are better suited to producing certain goods Devoting additional resources to an activity will increase the payoff. 9.Which type of economy has some centralized and some decentralized decision making. Centrally planned economies. Market economies All option are incorrect. Mixed economies 10.When resources are not specialized, the production possibilities curve will be? Positively sloped Negatively sloped Bowed outward Linear 11.The law of demand states that? When price goes up, quantity demand goes up. When price goes up , quantity demanded goes down When demand falls, quantity demanded rises. When demand increases, quantity demanded falls. 12.If the variable x increases and the y decreases that relationship is called a? Positive relationship. Signifigant relationship Direct relationship Negative relationship 13.Legal protection for private party, even intellectual property, are necessary All options are correct. To ensure whoever created the investment will reap the benefit. To promote efficiency. Because less investment will be undertaken without those protections. 14.Which statement best describes the law of demand? Trudy sells more pencils because the price has gone up. George buys more pencils at every price Stan buys fewer pencils because the price of pencils went up. Doris sells fewer pencils because the price of pencils has gone up. 15.When Estonia began paying women to have more babies, which of the following key economic ideas did the country rely on. Factors of production influence choice. People are rational. Optimal decision are made at the margin. People respond to economic incentives. Enter question here...Explanation / Answer
AP Economics MICRO Exam Review MC Questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Ali decides to attend the one-hour review session for microeconomics instead of working at his job. His job pays him $10 per hour. Ali's opportunity cost of attending the review session is a. the $10 he could have earned at his job. b. the value of the session minus the $10 he could have earned at his job. c. nothing, because the review session does not cost anything. d. equal to the benefit he gets from the review session. e. the one-hour review session. ____ 2. In 2003, Michael Jordan decided to retire from professional basketball. Which of the following was an opportunity cost of his decision? a. the lost salary from playing one more year b. the time he could spend with his family while retired c. the avoidance of pain and injury from playing one more year d. the value of new employment opportunities that would await him e. Both answers a and b are correct. ____ 3. Suppose you paid $400 tuition for a three-credit course. After the official withdrawal date has elapsed, you decide to drop the course but you cannot get back your $400. At this time, the $400 is a. the benefit of earning three credits. b. an expenditure made on the margin. c. a sunk cost. d. the opportunity cost of the course. e. the marginal cost of the course. ____ 4. In making rational choices, which of the following is true? a. We do not have to account for changes in marginal cost. b. We do not have to account for changes in marginal benefits. c. We respond to marginal benefits and marginal costs. d. We have to consider both marginal costs and sunk costs. e. Incentives do not matter. ____ 5. Which of the following is an incentive? a. General Motors offers 0% financing when a
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