AP MACROECONOMICS EXAMPREP 2026
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GUARANTEED TO PASS
◉ Machines are produced using capital and labor. Grain is produced
using land and labor. Which of the following production possibilities
curve graphs shows the effect of an increase in the amount of labor
available? Answer: Equally increases the production of grain and
machines.
◉ When an economy producing two goods is operating efficiently
and at full employment, increasing the production of one good will
result in Answer: a decrease in the amount of the other good that
can be produced.
◉ The diagram above shows the production possibilities curve for
the production of peaches and apples in Fruitland.
The production possibilities curve illustrates which of the following
relationships? Answer: Fruitland cannot produce a combination of 5
units of peaches and 10 units of apples.
,◉ The diagram above shows three production possibilities curves
(PPCs). If the current PPC is PPC1, which of the following changes
indicates a recession? Answer: Movement from point Y to point Z
Y is on the PPC while point Z is inside the curve (not on the curve)
◉ The diagram below shows the production alternatives of two
countries, Alpha and Beta, producing two goods, grain and steel,
using all of their available resources.
Before specialization and trade, the domestic opportunity cost of
producing 1 ton of grain in Alpha and in Beta is which of the
following? Answer: Alpha
1 Ton of Steel
beta
2 Tons of Steel
, ◉ Which of the following is true according to the circular flow
model? Answer: Households are demanders in the product markets
and suppliers in the factor markets.
◉ The table below shows a country's macroeconomic data in 2013.
Consumption spending - $175 billion
Individual income taxes - $32 billion
Private investment spending - $30 billion
Corporate taxes - $25 billion
Exports - $75 billion
Government purchases - $40 billion
Imports - $100 billion
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GUARANTEED TO PASS
◉ Machines are produced using capital and labor. Grain is produced
using land and labor. Which of the following production possibilities
curve graphs shows the effect of an increase in the amount of labor
available? Answer: Equally increases the production of grain and
machines.
◉ When an economy producing two goods is operating efficiently
and at full employment, increasing the production of one good will
result in Answer: a decrease in the amount of the other good that
can be produced.
◉ The diagram above shows the production possibilities curve for
the production of peaches and apples in Fruitland.
The production possibilities curve illustrates which of the following
relationships? Answer: Fruitland cannot produce a combination of 5
units of peaches and 10 units of apples.
,◉ The diagram above shows three production possibilities curves
(PPCs). If the current PPC is PPC1, which of the following changes
indicates a recession? Answer: Movement from point Y to point Z
Y is on the PPC while point Z is inside the curve (not on the curve)
◉ The diagram below shows the production alternatives of two
countries, Alpha and Beta, producing two goods, grain and steel,
using all of their available resources.
Before specialization and trade, the domestic opportunity cost of
producing 1 ton of grain in Alpha and in Beta is which of the
following? Answer: Alpha
1 Ton of Steel
beta
2 Tons of Steel
, ◉ Which of the following is true according to the circular flow
model? Answer: Households are demanders in the product markets
and suppliers in the factor markets.
◉ The table below shows a country's macroeconomic data in 2013.
Consumption spending - $175 billion
Individual income taxes - $32 billion
Private investment spending - $30 billion
Corporate taxes - $25 billion
Exports - $75 billion
Government purchases - $40 billion
Imports - $100 billion
