AP MICROECONOMICS UNIT 4 EXAM SCRIPT
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ Macroeconomics. Answer: the branch of economics that studies
national and international economics
◉ microeconomics. Answer: the branch of economics that studies
how people and firms make decisions
◉ resources. Answer: also called "factors of production," these are
commonly grouped into the four categories: labor, physical
capital,land(natural resources), and entrepreneurial(企业家的)
ability
◉ capital. Answer: the resources that includes equipment,
machinery, buildings, and tools
◉ scarcity. Answer: the imbalance between limited productive
resources and unlimited human wants
,◉ trade-offs. Answer: the reality of scare resources implies that
individuals, firms,and governments are constantly faced with
difficult choices that involve benefits an costs
◉ opportunity cost. Answer: the value of the sacrifice made to
pursue a course of action
◉ marginal. Answer: the next unit, or increment(增长), of an action
◉ marginal benefit(MB). Answer: the additional benefit received
from the consumption of the next unit of a good or service
◉ marginal cost(MC). Answer: the additional cost of producing one
more unit of output
◉ marginal analysis. Answer: making decisions based upon
weighing the marginal benefits and costs of that action. The rational
decision maker will choose an action if the marginal benefit is
greater that or equal to the marginal cost(MB>=MC)
◉ production possibilities. Answer: the different quantity of goods
that an economy can produce with a given amount of scare
resources.
, ◉ law of increasing costs. Answer: as more of a good is produced,
the greater is its opportunity (or marginal ) cost
◉ absolute advantage. Answer: the ability to produce more of a good
than all other producers
◉ comparative advantage. Answer: the ability to produce a good at a
lower opportunity cost than all other producers.
◉ specialization. Answer: production of goods or performance of
tasks based upon comparative advantage
◉ productive efficiency. Answer: production of maximum output for
a given level of technology and resources
◉ allocative efficiency. Answer: production of the combination of
goods and service that provides the most net benefit to society;
achieved when the marginal benefit equals the marginal
cost(MB=MC) of the next unit.
◉ economic growth. Answer: the increase in an economy's
production possibilities over time
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ Macroeconomics. Answer: the branch of economics that studies
national and international economics
◉ microeconomics. Answer: the branch of economics that studies
how people and firms make decisions
◉ resources. Answer: also called "factors of production," these are
commonly grouped into the four categories: labor, physical
capital,land(natural resources), and entrepreneurial(企业家的)
ability
◉ capital. Answer: the resources that includes equipment,
machinery, buildings, and tools
◉ scarcity. Answer: the imbalance between limited productive
resources and unlimited human wants
,◉ trade-offs. Answer: the reality of scare resources implies that
individuals, firms,and governments are constantly faced with
difficult choices that involve benefits an costs
◉ opportunity cost. Answer: the value of the sacrifice made to
pursue a course of action
◉ marginal. Answer: the next unit, or increment(增长), of an action
◉ marginal benefit(MB). Answer: the additional benefit received
from the consumption of the next unit of a good or service
◉ marginal cost(MC). Answer: the additional cost of producing one
more unit of output
◉ marginal analysis. Answer: making decisions based upon
weighing the marginal benefits and costs of that action. The rational
decision maker will choose an action if the marginal benefit is
greater that or equal to the marginal cost(MB>=MC)
◉ production possibilities. Answer: the different quantity of goods
that an economy can produce with a given amount of scare
resources.
, ◉ law of increasing costs. Answer: as more of a good is produced,
the greater is its opportunity (or marginal ) cost
◉ absolute advantage. Answer: the ability to produce more of a good
than all other producers
◉ comparative advantage. Answer: the ability to produce a good at a
lower opportunity cost than all other producers.
◉ specialization. Answer: production of goods or performance of
tasks based upon comparative advantage
◉ productive efficiency. Answer: production of maximum output for
a given level of technology and resources
◉ allocative efficiency. Answer: production of the combination of
goods and service that provides the most net benefit to society;
achieved when the marginal benefit equals the marginal
cost(MB=MC) of the next unit.
◉ economic growth. Answer: the increase in an economy's
production possibilities over time
