Part IV: AP Macroeconomics & Microeconomics Tests
- The following table shows the production
information for a profit maximizing widget
producing firm.
Number of Number of
Workers Widgets Produced001102253454705946115With which worker does the firm maximize its
marginal product?
A. 1
B. 3
C. 4
D. 5
E. 6- What does the term comparative advantagerefer to?
A. When the producer requires a smaller
number of inputs to produce that good.
B. The producer requires a larger number of
inputs to produce that good.
C. The producer is getting all it can from the
scarce resources available.
D. The producer has a lower opportunity cost
when producing that good.
E. The producer is producing less than what is
available to produce that good. - An inferior good rises in demand when an
individual:
A. Has an increase in income
B. Has a decrease in income
C. Becomes unemployed
D. Becomes employed
E. Pays more for the good - What term refers to the economic analysis
situation where all variables are held constant?
A. Fixed costs
B. Efficiency
C. Marginal costs
D. Variable costs
E. Ceteris paribus - Demand is elastic when:
A. Quantity supplied depends substantially on
price.
B. Quantity demanded does not respond to
price.
C. Quantity supplied does not respond to price.
D. Quantity demanded responds substantially to
a price change.
E. The supply curve shifts to the right.