AP Econ Unit 5 Questions And Answers 2025\2026
Assume people didn't trade. What things would you have to go without? What is
the point? - CORRECT ANSWER-Everything you don't produce yourself (clothes,
car, cell phone, bananas, health care, etc.). Everyone specializes in the production
of goods and services and trades it to others.
What would life be like if cities couldn't trade with cities or states couldn't trade
with states? What is the point? - CORRECT ANSWER-Limiting trade would reduce
people's choices and people would be worse off. More access to trade means
more choices and a higher standard of living.
What is the formula for per unit opportunity cost? - CORRECT ANSWER-
opportunity cost/units gained
Assume it costs you $50 to produce 5 t-shirts. What is your PER UNIT cost for each
shirt? - CORRECT ANSWER-$10 per shirt
Instead of producing 5 shirts you could have made 10 hats. What is your per unit
opportunity cost for each shirt in terms of hats given up? - CORRECT ANSWER-1
shirt costs 2 hats
, Instead of producing 5 shirts you could have made 10 hats. What is your per unit
opportunity cost for each hat in terms of shirts given up? - CORRECT ANSWER-1
hat costs half of a shirt
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Ronald's opportunity cost for one pizza in terms
of burgers given up? - CORRECT ANSWER-1 pizza costs 10 burgers
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Ronald's opportunity cost for one burger in
terms of pizza given up? - CORRECT ANSWER-1 burger costs 1/10 of a pizza
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Papa John's opportunity cost for one pizza in
terms of burgers given up? - CORRECT ANSWER-1 pizza costs 2 burgers
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Papa John's opportunity cost for one burger in
terms of pizza given up? - CORRECT ANSWER-1 burger costs 1/2 pizza
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. Who has the comparative advantage in the production
of burgers? pizza? - CORRECT ANSWER-Ronald; Papa John
What is absolute advantage? - CORRECT ANSWER-the producer that can produce
the most output OR requires the least amount of inputs (resources)
Assume people didn't trade. What things would you have to go without? What is
the point? - CORRECT ANSWER-Everything you don't produce yourself (clothes,
car, cell phone, bananas, health care, etc.). Everyone specializes in the production
of goods and services and trades it to others.
What would life be like if cities couldn't trade with cities or states couldn't trade
with states? What is the point? - CORRECT ANSWER-Limiting trade would reduce
people's choices and people would be worse off. More access to trade means
more choices and a higher standard of living.
What is the formula for per unit opportunity cost? - CORRECT ANSWER-
opportunity cost/units gained
Assume it costs you $50 to produce 5 t-shirts. What is your PER UNIT cost for each
shirt? - CORRECT ANSWER-$10 per shirt
Instead of producing 5 shirts you could have made 10 hats. What is your per unit
opportunity cost for each shirt in terms of hats given up? - CORRECT ANSWER-1
shirt costs 2 hats
, Instead of producing 5 shirts you could have made 10 hats. What is your per unit
opportunity cost for each hat in terms of shirts given up? - CORRECT ANSWER-1
hat costs half of a shirt
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Ronald's opportunity cost for one pizza in terms
of burgers given up? - CORRECT ANSWER-1 pizza costs 10 burgers
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Ronald's opportunity cost for one burger in
terms of pizza given up? - CORRECT ANSWER-1 burger costs 1/10 of a pizza
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Papa John's opportunity cost for one pizza in
terms of burgers given up? - CORRECT ANSWER-1 pizza costs 2 burgers
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. What is Papa John's opportunity cost for one burger in
terms of pizza given up? - CORRECT ANSWER-1 burger costs 1/2 pizza
Ronald McDonald can produce 20 pizzas or 200 burgers. Papa John can produce
100 pizzas or 200 burgers. Who has the comparative advantage in the production
of burgers? pizza? - CORRECT ANSWER-Ronald; Papa John
What is absolute advantage? - CORRECT ANSWER-the producer that can produce
the most output OR requires the least amount of inputs (resources)
