AP Macroeconomics Final Exam -
Multiple Choice Questions and Answers
Scarcity iiexists iibecause ii- iiAnswers ii-A. ii
human iiwants iiexceed iithe iiresources iiavailable iito iisatisfy iithem
An iiopportunity iicost iiis ii- iiAnswers ii-C.
the iibenefits iiof iithe iihighest-valued iialternative iiforgone
You iihave iichosen iito iitake iia iitrip iiduring iispring iibreak. iiIf iiyou iihad iinot iigone, iiyou
iiwould iieither iihave iiworked iiat iia iitemporary iijob iior iistudied iifor iiexams. iiThe
iiopportunity iicost iiof iiyour iitrip iiis ii- iiAnswers ii-E.
We iicannot iidetermine iiwhat iithe iiopportunity iicost iiis iiwithout iiknowing iiwhich
iialternative, iiworking iior iistudying, iiyou iiwould iihave iipreferred.
The iieconomic iichoices iimade iiby iiindividuals, iibusinesses, iiand iigovernments iiand iithe
iiinteractions iiof iithose iichoices iianswer iiwhich iithree iimajor iieconomic iiquestions? ii-
iiAnswers ii-B.
What?, iiHow?, iiand iiFor iiWhom?
When iiFord iidecides iito iiproduce iimore iihybrid iicars iithat iirun iion iiboth iigas iiand
iielectricity, iiit iidirectly iianswers iithe ii_____ iiquestion. ii- iiAnswers ii-A.
what
The iiUnited iiStates iiproduces iilarge iiamounts iiof iisoftware. iiBased iion iithis iiobservation,
iiit iiis iipossible iito iistate iithat iithe iiUnited iiStates iihas iidecided iithat ii"software" iiis iipart iiof
iithe iianswer iito iiwhich iieconomic iiquestion? ii- iiAnswers ii-D.
What iigoods iiand iiservices iiare iiproduced?
The iiquestion iiof ii"How iiare iigoods iiand iiservices iiproduced?" iimost iiclosely iiaddresses
iiwhich iiof iithe iifollowing iiissues? ii- iiAnswers ii-B. ii
Should iiFord iiuse iiexpensive iiindustrial iirobots iior iiinexpensive iiMexican iiautoworkers
iito iiproduce iiSUV's?
The iiopportunity iicost iiof iia iidecision iiis iimeasured iiin iiterms iiof ii- iiAnswers ii-C.
, the iinext iibest iithing iigiven iiup.
Mothers iiAgainst iiDrunk iiDrivers ii(MADD) iicampaigned iito iiincrease iithe iilegal iipenalties
iiof iidrunk iidriving. iiThis iisuccessful iicampaign ii____ iiof iidrunk iidriving. ii- iiAnswers ii-C.
increased iithe iimarginal iicost
Which iiof iithe iifollowing iiis iian iiexample iiof iia iisunk iicost? ii- iiAnswers ii-A.
after iiyou iistart iiwatching iia iimovie, iithe ii$8 iiyou iipaid iifor iithe iiticket
The iicost iiof iia iione-unit iiincrease iiin iian iiactivity iiis iicalled iithe ii- iiAnswers ii-C.
marginal iicost.
Correlation iimeans ii- iiAnswers ii-C.
the iivalues iiof iitwo iivariables iimove iiin iia iipredictable iiand iirelated iiway.
By iidonating ii$1,000 iito iithe iiSalvation iiArmy, iiCaroline iireduces iiher iitaxable iiincome.
iiTo iiCaroline, iithe iireduction iiin iiher iitaxable iiincome iiis ii- iiAnswers ii-C.
An iiincentive
In iieconomics, iithere iiare iitwo iitypes iiof iistatements. iiOne iidescribes iiwhat iiis; iithe iiother
iidescribes iiwhat iiought iito iibe. iiThese iistatements iiare ii- iiAnswers ii-D.
positive iiand iinormative
Which iiof iithe iifollowing iiis iiNOT iia iinormative iieconomic iistatement? ii- iiAnswers ii-C.
Teenagers iiare iiresponsible iifor iimost iidriving iifatalities.
Which iiof iithe iifollowing iiis iia iimacroeconomic iitopic? ii- iiAnswers ii-C.
Why iidid iiproduction iiand iijobs iiexpand iirapidly iiin ii2004?
Economists iitry iito iiisolate iithe iieffect iiof iione iivariable iiat iia iitime. iiThey iido iiso iiby ii-
iiAnswers ii-A.
holding iiall iiother iirelevant iifactors iithe iisame.
A iislope iiis iimeasured iias iithe ii- iiAnswers ii-C.
change iiin iithe iivalue iiof iivariable iion iithe iiy-axis iidivided iiby iithe iichange iiin iithe iivalue
iiof iithe iivariable iion iithe iix-axis.
To iihelp iiunscramble iicause iiand iieffect, iieconomists ii- iiAnswers ii-B.
must iiuse iithe iiceteris iiparibus iiassumption.
What iitypically iihappens iito iibenefits iias iithe iiamount iiof iian iiactivity iiis iiincreased? ii-
iiAnswers ii-D.
Marginal iibenefit iidecreases.
Making iichoices iion iithe iimargin iimeans ii- iiAnswers ii-B.
comparing iiall iirelevant iialternatives iisystematically iiand iiincrementally.
Multiple Choice Questions and Answers
Scarcity iiexists iibecause ii- iiAnswers ii-A. ii
human iiwants iiexceed iithe iiresources iiavailable iito iisatisfy iithem
An iiopportunity iicost iiis ii- iiAnswers ii-C.
the iibenefits iiof iithe iihighest-valued iialternative iiforgone
You iihave iichosen iito iitake iia iitrip iiduring iispring iibreak. iiIf iiyou iihad iinot iigone, iiyou
iiwould iieither iihave iiworked iiat iia iitemporary iijob iior iistudied iifor iiexams. iiThe
iiopportunity iicost iiof iiyour iitrip iiis ii- iiAnswers ii-E.
We iicannot iidetermine iiwhat iithe iiopportunity iicost iiis iiwithout iiknowing iiwhich
iialternative, iiworking iior iistudying, iiyou iiwould iihave iipreferred.
The iieconomic iichoices iimade iiby iiindividuals, iibusinesses, iiand iigovernments iiand iithe
iiinteractions iiof iithose iichoices iianswer iiwhich iithree iimajor iieconomic iiquestions? ii-
iiAnswers ii-B.
What?, iiHow?, iiand iiFor iiWhom?
When iiFord iidecides iito iiproduce iimore iihybrid iicars iithat iirun iion iiboth iigas iiand
iielectricity, iiit iidirectly iianswers iithe ii_____ iiquestion. ii- iiAnswers ii-A.
what
The iiUnited iiStates iiproduces iilarge iiamounts iiof iisoftware. iiBased iion iithis iiobservation,
iiit iiis iipossible iito iistate iithat iithe iiUnited iiStates iihas iidecided iithat ii"software" iiis iipart iiof
iithe iianswer iito iiwhich iieconomic iiquestion? ii- iiAnswers ii-D.
What iigoods iiand iiservices iiare iiproduced?
The iiquestion iiof ii"How iiare iigoods iiand iiservices iiproduced?" iimost iiclosely iiaddresses
iiwhich iiof iithe iifollowing iiissues? ii- iiAnswers ii-B. ii
Should iiFord iiuse iiexpensive iiindustrial iirobots iior iiinexpensive iiMexican iiautoworkers
iito iiproduce iiSUV's?
The iiopportunity iicost iiof iia iidecision iiis iimeasured iiin iiterms iiof ii- iiAnswers ii-C.
, the iinext iibest iithing iigiven iiup.
Mothers iiAgainst iiDrunk iiDrivers ii(MADD) iicampaigned iito iiincrease iithe iilegal iipenalties
iiof iidrunk iidriving. iiThis iisuccessful iicampaign ii____ iiof iidrunk iidriving. ii- iiAnswers ii-C.
increased iithe iimarginal iicost
Which iiof iithe iifollowing iiis iian iiexample iiof iia iisunk iicost? ii- iiAnswers ii-A.
after iiyou iistart iiwatching iia iimovie, iithe ii$8 iiyou iipaid iifor iithe iiticket
The iicost iiof iia iione-unit iiincrease iiin iian iiactivity iiis iicalled iithe ii- iiAnswers ii-C.
marginal iicost.
Correlation iimeans ii- iiAnswers ii-C.
the iivalues iiof iitwo iivariables iimove iiin iia iipredictable iiand iirelated iiway.
By iidonating ii$1,000 iito iithe iiSalvation iiArmy, iiCaroline iireduces iiher iitaxable iiincome.
iiTo iiCaroline, iithe iireduction iiin iiher iitaxable iiincome iiis ii- iiAnswers ii-C.
An iiincentive
In iieconomics, iithere iiare iitwo iitypes iiof iistatements. iiOne iidescribes iiwhat iiis; iithe iiother
iidescribes iiwhat iiought iito iibe. iiThese iistatements iiare ii- iiAnswers ii-D.
positive iiand iinormative
Which iiof iithe iifollowing iiis iiNOT iia iinormative iieconomic iistatement? ii- iiAnswers ii-C.
Teenagers iiare iiresponsible iifor iimost iidriving iifatalities.
Which iiof iithe iifollowing iiis iia iimacroeconomic iitopic? ii- iiAnswers ii-C.
Why iidid iiproduction iiand iijobs iiexpand iirapidly iiin ii2004?
Economists iitry iito iiisolate iithe iieffect iiof iione iivariable iiat iia iitime. iiThey iido iiso iiby ii-
iiAnswers ii-A.
holding iiall iiother iirelevant iifactors iithe iisame.
A iislope iiis iimeasured iias iithe ii- iiAnswers ii-C.
change iiin iithe iivalue iiof iivariable iion iithe iiy-axis iidivided iiby iithe iichange iiin iithe iivalue
iiof iithe iivariable iion iithe iix-axis.
To iihelp iiunscramble iicause iiand iieffect, iieconomists ii- iiAnswers ii-B.
must iiuse iithe iiceteris iiparibus iiassumption.
What iitypically iihappens iito iibenefits iias iithe iiamount iiof iian iiactivity iiis iiincreased? ii-
iiAnswers ii-D.
Marginal iibenefit iidecreases.
Making iichoices iion iithe iimargin iimeans ii- iiAnswers ii-B.
comparing iiall iirelevant iialternatives iisystematically iiand iiincrementally.
