AP Macroeconomics Final Review Mods 1-20 (Work in Progress)

Water is considered a scarce good because: A. not enough of it is available for all needs at zero cost. B. it does not have any uses. C. scarce goods are less expensive. D. there is no opportunity cost to consuming water. E. the government controls the distribution of it.

A. not enough of it is available for all needs at zero cost.

Whenever a choice is made: A. the cost of that choice could be referred to as opportunity cost. B. the cost is easy to measure in dollar terms. C. efficiency is improved. D. scarcity is not the problem. E. marginal costs are greater that marginal benefits of that choice.

A. the cost of that choice could be referred to as opportunity cost.

If resources are "scarce" it means that: A. they cannot provide enough goods or services to satisfy all human material wants and needs. B. they have no opportunity cost. C. they are probably not valued by consumers. D. they have an unlimited supply. E. it is impossible to create a supply of, or demand for, these resources.

A. they cannot provide enough goods or services to satisfy all human material wants and needs.

The problem of determining what goods and services society should produce: A. exists because we can produce more than we need or want. B. exists because there are not enough resources to provide all the goods and services that people want to purchase. C. would not exist if all goods and services were scarce. D. would not exist if government owned all of the resources. E. exists in a market economy, but not in a command economy.

B. exists because there are not enough resources to provide all the goods and services that people want to purchase.

Although water is very abundant in most places, it is scarce because: A. it has no alternative uses. B. there is not enough of it to meet all needs at zero cost. C. it is a free good. D. scarce goods in general are not all that costly. E. it is a public good.

B. there is not enough of it to meet all needs at zero cost.

The basic concern of economics is: A. to keep business firms from losing money. B. to prove that capitalism is better than socialism. C. to study the choices people make. D. To use unlimited resources to produce goods and services to satisfy limited wants. E. To increase the amount of wealth in the economy.

C. to study the choices people make.

Khalil is offered a free ticket to the opera. His opportunity cost of going to the opera is: A. zero - the tickets were free. B. the price listed on the ticket. C. whatever Khalil would have done had he not gone to the opera. D. the price listed on the ticket plus whatever Khalil would have done had he not gone to the opera. E. the price listed on the ticket plus whatever Khalil could have received by selling it to another person in the parking lot.

C. whatever Khalil would have done had he not gone to the opera.

We have to make choices because: A. we have unlimited income. B. resources are freely available. C. choices have no consequences. D. resources are scarce and because choices involve a trade-off. E. Marginal benefits never exceed marginal costs.

D. resources are scarce and because choices involve a trade-off.

Which of the following statements would be a part of macroeconomics? A. Severe drought in the American Midwest has reduced the corn harvest and increased corn pieces. B. A local hardware store has closed due to a lock of customers. C. Consumers have increased demand for tomatoes due to their healthy properties. D. Two large airlines are merging to become one firm. E. The U.S. Gross Domestic Product has risen sharply, indicating that the recession might be near an end.

E. The U.S. Gross Domestic Product has risen sharply, indicating that the recession might be near an end.

Opportunity cost is: A. about half of the monetary cost of a product. B. the monetary payment for a product. C. the benefit derived from a product. D. the minimum price a consumer would be willing to pay for a product. E. the value of the best alternative forgone in making any choice.

E. the value of the best alternative forgone in making any choice.