AP MICROECONOMICS QUESTIONS
AND ANSWERS WELL GRADED (NEW
2025/2026 UPDATE) QUESTIONS
WITH VERIFIED ANSWERS 100%
CORRECT /A+ GRADE
capital - CORRECT ANSWER-the resources that includes equipment,
machinery, buildings, and tools
scarcity - CORRECT ANSWER-the imbalance between limited
productive resources and unlimited human wants
trade-offs - CORRECT 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 - CORRECT ANSWER-the value of the sacrifice made
to pursue a course of action
marginal - CORRECT ANSWER-the next unit, or increment(增长), of
an action
marginal benefit(MB) - CORRECT ANSWER-the additional benefit
received from the consumption of the next unit of a good or
service
,marginal cost(MC) - CORRECT ANSWER-the additional cost of
producing one more unit of output
marginal analysis - CORRECT 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 - CORRECT ANSWER-the different quantity of
goods that an economy can produce with a given amount of
scare resources.
law of increasing costs - CORRECT ANSWER-as more of a good is
produced, the greater is its opportunity (or marginal ) cost
absolute advantage - CORRECT ANSWER-the ability to produce more
of a good than all other producers
comparative advantage - CORRECT ANSWER-the ability to produce a
good at a lower opportunity cost than all other producers.
specialization - CORRECT ANSWER-production of goods or
performance of tasks based upon comparative advantage
barter - CORRECT ANSWER-the act of exchanging goods and services
for other goods and services
,productive efficiency - CORRECT ANSWER-production of maximum
output for a given level of technology and resources
allocative efficiency - CORRECT 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 - CORRECT ANSWER-the increase in an economy's
production possibilities over time
economy - CORRECT ANSWER-a system for coordinating(协调)
society's productive activities
Market Economy(Capitalism) - CORRECT ANSWER-an economic
system in which resources are allocated through the
decentralized(分散化的) decisions of firms and consumers
production possibility frontier(curve) - CORRECT ANSWER-the
graphical device used to show the production possibilities of
two goods
curve - CORRECT ANSWER-a line on a graph that shows the
relationship between two variables
Law of demand - CORRECT ANSWER-all else equal, when the price of
a good rises, the quantity demanded of that good falls
, Demand price - CORRECT ANSWER-the price of a given quantity at
which consumers will demand that quantity
all else equal - CORRECT ANSWER-the assumption that all other
variables are held constant so we can predict how a chang in
one variable affects a second. Also sometimes referred to as the
ceteris paribus assumption.
Absolute(or money ) prices - CORRECT ANSWER-the price of a good
measured in units of currency
relative price - CORRECT ANSWER-the price of one unit of good X
measured not in currency, but in the number of units of good Y
that must be sacrificed to acquire good X
substitution effect - CORRECT ANSWER-the change in quantity
demanded resulting from a change in the price of one good
relative to the price of other goods
income effect - CORRECT ANSWER-due to a higher price, the change
in quantity demanded that results from a change in the
consumer's purchasing power (or real income)
demand schedule - CORRECT ANSWER-a table showing quantity
demanded for a good at various prices
demand curve - CORRECT ANSWER-shows the quantity of a good
demanded at all prices
AND ANSWERS WELL GRADED (NEW
2025/2026 UPDATE) QUESTIONS
WITH VERIFIED ANSWERS 100%
CORRECT /A+ GRADE
capital - CORRECT ANSWER-the resources that includes equipment,
machinery, buildings, and tools
scarcity - CORRECT ANSWER-the imbalance between limited
productive resources and unlimited human wants
trade-offs - CORRECT 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 - CORRECT ANSWER-the value of the sacrifice made
to pursue a course of action
marginal - CORRECT ANSWER-the next unit, or increment(增长), of
an action
marginal benefit(MB) - CORRECT ANSWER-the additional benefit
received from the consumption of the next unit of a good or
service
,marginal cost(MC) - CORRECT ANSWER-the additional cost of
producing one more unit of output
marginal analysis - CORRECT 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 - CORRECT ANSWER-the different quantity of
goods that an economy can produce with a given amount of
scare resources.
law of increasing costs - CORRECT ANSWER-as more of a good is
produced, the greater is its opportunity (or marginal ) cost
absolute advantage - CORRECT ANSWER-the ability to produce more
of a good than all other producers
comparative advantage - CORRECT ANSWER-the ability to produce a
good at a lower opportunity cost than all other producers.
specialization - CORRECT ANSWER-production of goods or
performance of tasks based upon comparative advantage
barter - CORRECT ANSWER-the act of exchanging goods and services
for other goods and services
,productive efficiency - CORRECT ANSWER-production of maximum
output for a given level of technology and resources
allocative efficiency - CORRECT 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 - CORRECT ANSWER-the increase in an economy's
production possibilities over time
economy - CORRECT ANSWER-a system for coordinating(协调)
society's productive activities
Market Economy(Capitalism) - CORRECT ANSWER-an economic
system in which resources are allocated through the
decentralized(分散化的) decisions of firms and consumers
production possibility frontier(curve) - CORRECT ANSWER-the
graphical device used to show the production possibilities of
two goods
curve - CORRECT ANSWER-a line on a graph that shows the
relationship between two variables
Law of demand - CORRECT ANSWER-all else equal, when the price of
a good rises, the quantity demanded of that good falls
, Demand price - CORRECT ANSWER-the price of a given quantity at
which consumers will demand that quantity
all else equal - CORRECT ANSWER-the assumption that all other
variables are held constant so we can predict how a chang in
one variable affects a second. Also sometimes referred to as the
ceteris paribus assumption.
Absolute(or money ) prices - CORRECT ANSWER-the price of a good
measured in units of currency
relative price - CORRECT ANSWER-the price of one unit of good X
measured not in currency, but in the number of units of good Y
that must be sacrificed to acquire good X
substitution effect - CORRECT ANSWER-the change in quantity
demanded resulting from a change in the price of one good
relative to the price of other goods
income effect - CORRECT ANSWER-due to a higher price, the change
in quantity demanded that results from a change in the
consumer's purchasing power (or real income)
demand schedule - CORRECT ANSWER-a table showing quantity
demanded for a good at various prices
demand curve - CORRECT ANSWER-shows the quantity of a good
demanded at all prices
