AP Microeconomics Tests Bundle Set

Which of the following best defines opportunity cost? CORRECT ANSWER It is the amount of one product that must be given up to produce an additional unit of another product Which of the following explains why a production possibilities curve is often represented as concave (bowed out) from the ori...

The characteristic from which all economic problems arise is... A) Political Decisions B) Providing a minimal standard of living for every person C) How to make a profit D) Hunger E) Scarcity CORRECT ANSWER E Scarcity results from the fact that... A) People's wants exceed the resources ava...

scarcity CORRECT ANSWER the limited nature of society's resources economics CORRECT ANSWER the study of how society manages its scarce resources efficiency CORRECT ANSWER the property of society getting the most it can from its scarce resources rational people CORRECT ANSWER people who sys...

Our wants are ___ and our resources are ___. CORRECT ANSWER limitless, scarce What is economics? CORRECT ANSWER the science of scarcity; Social Science concerned with the efficient use of scarce resources to achieve maximum satisfaction of economic wants Economics is the study of ___. CORRECT ...

All of the following are true of allocatively efficient markets except CORRECT ANSWER Consumers place a higher value on that product that it is costing firms to produce What type of efficiency is defined as the mix of goods and services produced that are just what society desires? CORRECT ANSWER ...

5 Characteristics of a Monopoly CORRECT ANSWER 1) Single Seller 2) Unique good with no close substitute 3) "Price Maker" 4) High Barriers to Entry 5) Some "Nonprice" Competition Single Seller (1) CORRECT ANSWER -one firm controls the vast majority of a market -firm=industry "Price Ma...

At the birthday party of your best friend, you see Skylar help himself to a second piece of cake. For this individual, it must be the case that: CORRECT ANSWER The marginal benefit of the second piece of the cake is greater than the marginal cost. Nancy has the choice to spend one hour studying f...