AP Economics Practice Test
if consumers in a country spend $800 of each additional thousand dollars of income, then which of the following is the government spending multiplier?
5
economists consider the choices people must make as originating from...
scarcity
if the supply of cat food increases and the demand for cat food decreases, how will the equilibrium price quantity be affected
the equilibrium price will decrease but the change in the equilibrium quantity is unknown
according to the Law of Supply, if the price of a product decreases, one would expect...
quantity supplied to decrease
in Britain, the opportunity cost of moving from 4 to 5 tons of steel is...
3 tons of chemicals (x/y=oc)
using the graph above, which of the following point(s) represent efficiency in production?
A and B
which of the following will cause a shift in the PPC? I. change in resources II. changes in technology III. change in price
I and II only (change in resources, change in technology)
which of the following formulas would be used to calculate nominal GDP? (assume that the current year is different from the base year)
current year prices x current year quantities
an increase in the cos of any factor of production for a good or service will result in...
a leftward shift of the supply curve for that good or service
which of the following would be a case of frictional unemployment?
a worker quits her job to search for a better job in another city
which of the following would be considered structurally unemployed?
an assembly line worker is replaced by a robot
which of the following could cause Country X to move from Point A to Point B on the PPC? (an increase in the PPC)
an increase in the number of workers
which of the following things would cause a decrease in the supply of cotton t-shirts?
an increase in the price of cotton
which of the following things would cause a decrease in the demand for soccer cleats?
an increase in the price of soccer balls (complementary products)
which of the following events would case short-run aggregate SUPPLY to shift left?
an increase in the price of steel and other commodities
which of the following formulas would be used to calculate real GDP?
base years prices x current year quantities
fluctuations in employment and output in the short run are known as...
business cycles
which of the following is a factor of production?
capital
which of the following is NOT a determinant of supply?
consumer demand
the law of demand is illustrated by a demand curve that is...
downward sloping
assume shoes are a normal good (not inferior). according to the Law of Demand, when all else is equal...
if the price of shoes increases, then the quantity of the shoes demand will decrease
if the marginal propensity to consume (MPC) increases, the what will happen to consumption?
increase for each income increase
which f the following is true regarding a demand curve?
it's downward slope represents an inverse relationship between price and quantity
which of the following would not satisfy an economist's definition of the concept of scarce resources?
measles
GDP that has NOT been adjusted for inflation is known as...
nominal GDP
which of the following would be included in the calculation of GDP?
personal consumption
which of the following is not representative of major macroeconomic goals?
price level fluctuations over time
a shortage in the market will occur when...
the quantity demanded is greater than the quantity supplied
in the long run, the business cycle has a generally ? trend because of ? .
upward sloping, economic growth
