AP MACROECONOMICS EXAMINATION TEST
2026 FULL QUESTIONS WITH VERIFIED
SOLUTIONS
◉ Services. Answer: Activities performed by people, firms or
government agencies to satisfy economic wants.
◉ Capital. Answer: An economic and political system in which a
country's trade and industry are controlled by private owners for
profit, rather than by the state.
◉ Entrepreneurship. Answer: the process of starting, organizing,
managing, and assuming the responsibility for a business
◉ Scarcity. Answer: A situation in which unlimited wants exceed the
limited resources available to fulfill those wants
◉ Economics. Answer: The study of choices leading to the best
possible use of scarce resources in order to best satisfy the
unlimited human needs and wants.
◉ Rationing Device. Answer: A means for deciding who gets what
portion of the available resources and goods.
,◉ Opportunity Cost. Answer: Cost of the next best alternative use of
money, time, or resources when one choice is made rather than
another
◉ Marginal Benefits. Answer: Additional benefits; the benefits
connected with consuming an additional unit of a good or
undertaking one more unit of an activity.
◉ Marginal Costs. Answer: the change in total cost due to a one-unit
increasing the variable input; the cost of using more of a factor of
production.
◉ Efficiency. Answer: A measure of how well or how productively
resources are used to achieve a goal
◉ Exchange. Answer: The act of obtaining a desired object from
someone by offering something in return.
◉ Positive Economics. Answer: An approach to economics that seeks
to understand behavior and the operation of systems without
making judgments. It describes what exists and how it works.
◉ Normative Economics. Answer: The body of economics based on
normative statements, which involve beliefs, or value judgements
, about what ought to be. Normative statements cannot be true or
false; they can only be assessed relative to beliefs and value
judgements. Normative economics forms the basis of economic
policies.
◉ Microeconomics. Answer: The study of how households and firms
make choices, how they interact in markets, and how the
government attempts to influence their choices.
◉ Macroeconomics. Answer: Deals with the economy as a whole.
Macroeconomics focuses on the determinants of total national
income, deals with aggregates such as aggregate consumption and
investment, and looks at the overall level of prices instead of
individual prices.
◉ Production Possibilities Curve. Answer: All possible combination
of the maximum amounts of two goods that can be produced by an
economy, given fixed and unchanging resources and technology.
◉ Law of Increasing Opportunity Costs. Answer: As more of a
particular product is produced, the opportunity cost, in terms of
what must be given up of other goods to produce each unit of the
product, increases. Explains the convex shape of a nation's
production possibilities curve.
2026 FULL QUESTIONS WITH VERIFIED
SOLUTIONS
◉ Services. Answer: Activities performed by people, firms or
government agencies to satisfy economic wants.
◉ Capital. Answer: An economic and political system in which a
country's trade and industry are controlled by private owners for
profit, rather than by the state.
◉ Entrepreneurship. Answer: the process of starting, organizing,
managing, and assuming the responsibility for a business
◉ Scarcity. Answer: A situation in which unlimited wants exceed the
limited resources available to fulfill those wants
◉ Economics. Answer: The study of choices leading to the best
possible use of scarce resources in order to best satisfy the
unlimited human needs and wants.
◉ Rationing Device. Answer: A means for deciding who gets what
portion of the available resources and goods.
,◉ Opportunity Cost. Answer: Cost of the next best alternative use of
money, time, or resources when one choice is made rather than
another
◉ Marginal Benefits. Answer: Additional benefits; the benefits
connected with consuming an additional unit of a good or
undertaking one more unit of an activity.
◉ Marginal Costs. Answer: the change in total cost due to a one-unit
increasing the variable input; the cost of using more of a factor of
production.
◉ Efficiency. Answer: A measure of how well or how productively
resources are used to achieve a goal
◉ Exchange. Answer: The act of obtaining a desired object from
someone by offering something in return.
◉ Positive Economics. Answer: An approach to economics that seeks
to understand behavior and the operation of systems without
making judgments. It describes what exists and how it works.
◉ Normative Economics. Answer: The body of economics based on
normative statements, which involve beliefs, or value judgements
, about what ought to be. Normative statements cannot be true or
false; they can only be assessed relative to beliefs and value
judgements. Normative economics forms the basis of economic
policies.
◉ Microeconomics. Answer: The study of how households and firms
make choices, how they interact in markets, and how the
government attempts to influence their choices.
◉ Macroeconomics. Answer: Deals with the economy as a whole.
Macroeconomics focuses on the determinants of total national
income, deals with aggregates such as aggregate consumption and
investment, and looks at the overall level of prices instead of
individual prices.
◉ Production Possibilities Curve. Answer: All possible combination
of the maximum amounts of two goods that can be produced by an
economy, given fixed and unchanging resources and technology.
◉ Law of Increasing Opportunity Costs. Answer: As more of a
particular product is produced, the opportunity cost, in terms of
what must be given up of other goods to produce each unit of the
product, increases. Explains the convex shape of a nation's
production possibilities curve.
