Economics Micro & Macro (CliffsAP)

(Joyce) #1

Part IV: AP Macroeconomics & Microeconomics Tests



  1. The following table shows the production
    information for a profit maximizing widget
    producing firm.


Number of Number of
Workers Widgets Produced

00

110

225

345

470

594

6115

With which worker does the firm maximize its
marginal product?
A. 1
B. 3
C. 4
D. 5
E. 6


  1. 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.

  2. 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

  3. 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

  4. 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.

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