AP Microeconomics Unit 1 questions with correct
answers
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 available to satisfy them
B) Not all goals are desirable
C) We cannot answer the major economic questions
D) Choices made in self-interest are not always in the social interest
E) The population keeps growing CORRECT ANSWER A
To economists, scarcity means that
A) Limited wants cannot be satisfied by the unlimited resources
B) A person looking for work is not able to find work
C) The number of people without jobs rises when economic times are bad
D) There can never be answers to the what, how, or for whom questions
E) Unlimited wants cannot be satisfied by the limited resources CORRECT ANSWER E
The question "Should we produce video tapes or DVD discs?" is an example of a _______ question. A) What
B) How
C) For Whom
D) Where
E) Why CORRECT ANSWER A
The question "Should we produce houses using bricks or wood?" is an example of a ______ question.
A) What
B) How
C) For Whom
D) Where
E) Why CORRECT ANSWER B
If a decision is made and it is the best choice for society, the decision is said to be...
A) A valid economic choice
B) Made in self-interest
C) Made in social interest
D) Consistent with scarcity
E) A want-maximizing choice CORRECT ANSWER C
Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain
Dew is...
A) The Pepsi and the bag of chips
B) The Pepsi or the bag of chips, whichever the highest-valued alternative forgone C) The Mountain Dew
D) The Pepsi because it is a drink, as is the Mountain Dew
E) Zero because he enjoys the Mountain Dew CORRECT ANSWER B
The benefit of an activity is...
A) Purely objective and measured in dollars
B) The gain or pleasure that it brings
C) The value of its sunk cost
D) Measured by what must be given up to get one more unit of the activity
E) Not measurable on the margin CORRECT ANSWER B
The cost of a one-unit increase in an activity...
A) Is the total one-unit cost
B) Is called the marginal cost
C) Decreases as you do more of the activity
D) Is called the marginal benefit/cost
E) Is called the sunk cost CORRECT ANSWER B
The marginal benefit of an activity is...
i. The benefit from a one-unit increase in the activity
ii. The benefit of a small, unimportant activity
iii. Measured by what the person is willing to give up to get one additional unit of the activity
A) i only
B) ii only
C) iii only
answers
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 available to satisfy them
B) Not all goals are desirable
C) We cannot answer the major economic questions
D) Choices made in self-interest are not always in the social interest
E) The population keeps growing CORRECT ANSWER A
To economists, scarcity means that
A) Limited wants cannot be satisfied by the unlimited resources
B) A person looking for work is not able to find work
C) The number of people without jobs rises when economic times are bad
D) There can never be answers to the what, how, or for whom questions
E) Unlimited wants cannot be satisfied by the limited resources CORRECT ANSWER E
The question "Should we produce video tapes or DVD discs?" is an example of a _______ question. A) What
B) How
C) For Whom
D) Where
E) Why CORRECT ANSWER A
The question "Should we produce houses using bricks or wood?" is an example of a ______ question.
A) What
B) How
C) For Whom
D) Where
E) Why CORRECT ANSWER B
If a decision is made and it is the best choice for society, the decision is said to be...
A) A valid economic choice
B) Made in self-interest
C) Made in social interest
D) Consistent with scarcity
E) A want-maximizing choice CORRECT ANSWER C
Jamie has enough money to buy either a Mountain Dew, or a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain
Dew is...
A) The Pepsi and the bag of chips
B) The Pepsi or the bag of chips, whichever the highest-valued alternative forgone C) The Mountain Dew
D) The Pepsi because it is a drink, as is the Mountain Dew
E) Zero because he enjoys the Mountain Dew CORRECT ANSWER B
The benefit of an activity is...
A) Purely objective and measured in dollars
B) The gain or pleasure that it brings
C) The value of its sunk cost
D) Measured by what must be given up to get one more unit of the activity
E) Not measurable on the margin CORRECT ANSWER B
The cost of a one-unit increase in an activity...
A) Is the total one-unit cost
B) Is called the marginal cost
C) Decreases as you do more of the activity
D) Is called the marginal benefit/cost
E) Is called the sunk cost CORRECT ANSWER B
The marginal benefit of an activity is...
i. The benefit from a one-unit increase in the activity
ii. The benefit of a small, unimportant activity
iii. Measured by what the person is willing to give up to get one additional unit of the activity
A) i only
B) ii only
C) iii only
