Part IV: AP Macroeconomics & Microeconomics Tests
- Question 8 refers to the following graph.
The graph above depicts the economic idea of:
A. Diminishing marginal price of labor
B. Diminishing marginal returns of labor
C. Marginal cost of labor
D. Total cost of production
E. Marginal variable cost of labor- What holds true for a perfectly competitive
market?
A. Many firms producing many types of
products.
B. Few firms producing one type of product.
C. One firm producing one product.
D. Many firms producing one type of product.
E. Few firms producing many types of products.
10. Which of the following best describes the basic
economic problem that faces all countries?
A. How to utilize profits for investment
B. How to integrate our technology in
production
C. How they utilize our resources to meet
unlimited demands
D. How they establish quality and resource
management
E. How to combine government and private
firms to maximize production- What is the basic economic problem that faces all
countries?
A. How to utilize profits for investment
B. How to integrate our technology in production
C. How they utilize our resources to meet our
unlimited demands
D. How they establish quality and resource
management
E. How to combine government and private
firms to maximize production
12. Suppose butter and margarine are substitutes.
Assume the price of milk, an input in the
production of butter, increases. What will happen
to the demand for margarine?
A. The demand of margarine will stay the same.
B. The demand of margarine will shift to the
right.
C. The demand of margarine will shift to the left.
D. The quantity of margarine demanded will
decrease.
E. The quantity of margarine demanded will
stay the same.13. Which series of shifts in the demand and supply
curves will cause equilibrium price and
equilibrium quantity to increase significantly?
A. A shift in the supply curve to the right and a
shift in the demand curve to the left.
B. A shift in the supply curve to the right and a
shift in the demand curve to the right.
C. A shift in the supply curve to the left and a
shift in the demand curve to the left.
D. Only a shift in the supply curve to the right.
E. Only a shift in the demand curve to the left.14. Which of the following is true for an ordinary good?
A. As income rises, consumption of the good
decreases.
B. As the price of the good falls, consumption
of the good increases.
C. As the price of the good falls, consumption
of the good decreases.
D. As the price of the good falls, the demand
curve shifts to the right.
E. An ordinary good violates the first law of
demand.Number of WorkersOutput per
Worker