AP Microeconomics Unit 1 questions with correct

AP Microeconomics Unit 1 questions with correct answers The characteristic from which all economic problems arise is...

• Political Decisions
• Providing a minimal standard of living for every person
• How to make a profit
• Hunger
• Scarcity CORRECT ANSWER E

Scarcity results from the fact that...

• People's wants exceed the resources available to satisfy them
• Not all goals are desirable
• We cannot answer the major economic questions
• Choices made in self-interest are not always in the social interest
• The population keeps growing CORRECT ANSWER A

To economists, scarcity means that

• Limited wants cannot be satisfied by the unlimited resources
• A person looking for work is not able to find work
• The number of people without jobs rises when economic times are bad
• There can never be answers to the what, how, or for whom questions
• Unlimited wants cannot be satisfied by the limited resources CORRECT

ANSWER E

The question "Should we produce video tapes or DVD discs?" is an example of a _______ question. 1 / 3

• What
• How
• For Whom
• Where
• Why CORRECT ANSWER A

The question "Should we produce houses using bricks or wood?" is an example of a ______ question.

• What
• How
• For Whom
• Where
• Why CORRECT ANSWER B

If a decision is made and it is the best choice for society, the decision is said to be...

• A valid economic choice
• Made in self-interest
• Made in social interest
• Consistent with scarcity
• A want-maximizing choice CORRECT ANSWER C

Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is...

• The Pepsi and the bag of chips
• The Pepsi or the bag of chips, whichever the highest-valued alternative forgone 2 / 3

• The Mountain Dew
• The Pepsi because it is a drink, as is the Mountain Dew
• Zero because he enjoys the Mountain Dew CORRECT ANSWER B

The benefit of an activity is...

• Purely objective and measured in dollars
• The gain or pleasure that it brings
• The value of its sunk cost
• Measured by what must be given up to get one more unit of the activity
• Not measurable on the margin CORRECT ANSWER B

The cost of a one-unit increase in an activity...

• Is the total one-unit cost
• Is called the marginal cost
• Decreases as you do more of the activity
• Is called the marginal benefit/cost
• Is called the sunk cost CORRECT ANSWER B

The marginal benefit of an activity is...

• The benefit from a one-unit increase in the activity

ii. The benefit of a small, unimportant activity iii. Measured by what the person is willing to give up to get one additional unit of the activity

• i only
• ii only
• iii only
• / 3