It will cover this material through a mix of intuitive explanations, real-world applications, and graphical and mathematical supplements that explore the content in more depth. Unit 2: Supply and Demand You'll learn the basis for understanding how markets work with an introduction to the supply and demand model. (D) a slice of pizza. A straight-line production possibilities curve has a constant opportunity cost. Below is a detailed breakdown of both the multiple choice and free-response sections. Microeconomics the branch of economics that studies how individuals, households, and firms make decisions and how those decisions interact Macroeconomics the branch of economics that is concerned with the overall ups and downs of the economy economic aggregates economic measures that summarize data across many different markets positive economics Writing Period50 minutes . (E) Michelle's opportunity cost for producing one surfboard is 3 bikes. C. Developing a price mechanism that reflects the relative scarcities of products and D. Resources are being inefficiently used in the economy A $100,000 business loan from a bank at$2.80150,000lb. Unit 1: Basic Economic Concepts 0/900 Mastery points Scarcity Resource Allocation and Economic Systems Production possibilities curve (PPC) 4 0 obj 10. D. The long-run gains to consumers and some producers exceed the losses to other producers. at } \$ 2.80 \\ A) Humans are insufficient B) Resources are unlimited C) Resources are efficient D) Resources are expensive E) Resources have alternative uses Click the card to flip E) Resources have alternative uses. (A) unattainable. Answer: B, Which of the following must be true if an individuals next best alternative to going to the AP Macroeconomics - Unit 1 - Basic Economic Concepts Exam Date: May 4, 2023. \hline \text { Between Groups } & 6.90 & 2 & 3.45 & 5.15 \\ B. B. Correct. (A) Tina has an absolute advantage in the production of scooters. We'll introduce key concepts like opportunity costs, trade-offs, and production possibilities. Semiannual interest on bonds is equal to the face value times the stated rate times 6/12. Workers who lose their jobs due to free trade can collect unemployment compensation. Answer: B, The law of increasing opportunity cost is reflected in the shape of the Once you join your AP class section online, youll be able to access AP Daily videos, any assignments from your teacher, and your assignment results in AP Classroom. A. (E) Japan has a comparative advantage in the production of both goods. The six units of study are as follows: Unit 1: Basic Economic Concepts. 3 Questions | 1 Hour (includes a 10-minute reading period) | 33% of Exam Score, Learning Opportunities for AP Coordinators, AP Microeconomics Course and Exam Description. Credit Card Expenditures. The marginal utility of the 4th slice is 4 utils The framework specifies what students must know, be able to do, and understand, with a focus on big ideas that encompass core principles and theories of the discipline. Our mission is to provide a free, world-class education to anyone, anywhere. She chooses to buy the Pepsi. The opportunity costs is seeing their friends at the beach (C) TUx/Px = TUy/Py Unit 1. Scarcity, Opportunity Cost, Marginal Analysis, Economic Systems, and Comparative Advantage.For more help with unit one, there are content reviews, review games, and practice exercises for you at: https://www.reviewecon.com/ap-microeconomics-ced-alignment#CED1Note: Topics are out of oder because this is the order in which they are covered in the ReviewEcon.com Total Review Booklet.To support this channel, like and subscribe, then purchase the Total Review Booklet from ReviewEcon.com. Government expenditures Which of the following is true for all economies regardless of their economic system? D. Minimum wage Will the kiosks necessarily reduce the total number of workers E. Enacting a set of laws that protects resources from overuse. The AP Microeconomics Exam includes two sections. C. Substitution effect _______3. What is the point estimate of the difference between the population means? AP Microeconomics - Unit 3 - Production, Cost, & the Perfect Competition Model Exam Date: May 5, 2023 Don't miss out on these useful resources for production, cost, and the perfecet competition model. Japan can produce either 1 tons of grain or 6 cars with. For example, a pizza parlor uses tomatoes, yeast, and flour. B. Note that this is strictly a change to the calculator policy and does not affect the exam format (number of sections, number of questions), the type of questions students may see on the exam, or the course skills. Youll learn the basis for understanding how markets work with an introduction to the supply and demand model. Starting with the 2023 exam, a four-function calculator is permitted for use on both sections of the exam. Donate or volunteer today! What does a production possibilities graph (PPG) and production possibilities curve (PPC) show, -there are only 2 goods produced (C) Tina's opportunity cost for producing one scooter is 5 longboards. C. Social Security payments _____________ 4. (C) Michelle has a comparative advantage in the production of bikes. Unit 3: National Income and Price Determination. _______2. Microeconomics 71% (7) 2. (C) be unable to choose between eating or not eating. The common factors of production are land, labor, and capital, but it also varies. Know more Show Answers See Preview 1. AP Exams are regularly updated to align with best practices in college-level learning. _______4. Ukraine can produce either 16 ton of grain or 2 cars. good increases satisfaction by 30 utils? Using a Lorenz Curve, we can see the wealth of certain sections of society within a country. Answer: A, Which of the following would cause a leftward shift of the production possibilities curve? An increase in the demand for consumer goods B. How to produce it? 8. Japan has an absolute advantage in the production of cars, while Ukraine has a comparative advantage in the (C) The marginal utility of the second unit is 50. In which way does a straight-line production possibilities curve differ from a concave production possibilities curve? _____________ 11. D. An oven for a family of four Unit 1: Basic Economic Concepts define resources and the cause (s) of their scarcity that prepares students for advanced economics coursework. B. (D) Choices made in self-interest are not always in the social interest. A cause and effect relationship in which one variable controls the changes in another variable. E. The opportunity cost of going to the beach is being better prepared for the exam 2018 AP MICROECONOMICS FREE-RESPONSE QUESTIONS MICROECONOMICS Section II Total Time1 hour . . Course. (i) The profit-maximizing quantity of tickets . Youll learn how imperfectly competitive markets work and how game theory comes into play in economic models. (B) not eat the slice of pizza. -fixed resources (ceteris paribus) 18. What are the three economic questions every society must answer, The government owns all resources and answers all three economic questions, What are characteristics of centrally planned economies, no profit or competition means that there is no incentive to work harder and produce high-quality goods and avoid shortages, What is a main problem with centrally planned economies, individuals own resources and answer the three economic resources, competition and self-interest work together to regulate the economy (with lower prices and higher quality), What are characteristics of the free market, A, because more capital vs consumer goods are being produced, Which point will result in more future economic growth for a country, A or C, The market where goods and services produced by businesses are sold to consumers, The market where resources (land, labour, capital, entrepreneurship) are sold to businesses, The amount of input of this product over the amount of input of the other product, How do you calculate the opportunity cost in input questions, the number that can be produced of the other product over the number that can be produced of this product, How do you calculate the opportunity cost in output questions, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. By opening this packet, you agree to all of the AP Program's policies and . Every economy must determine what to produce and how it produce goods and services Which of the following would cause a leftward shift of the production possibilities curve? The AP Higher Education section features information on recruitment and admission, advising and placement, and more. Encourage your students to visit theAP Microeconomics student pagefor exam information. -fixed technology, E is unattainable, B is efficient, D is inefficient, What is the difference between points E, B, and D, What is the opportunity cost of going from producing 0 cars to 150 cars, Resources are easily adaptable for producing either good. Suppose that a consumer purchases two goods X and Y and that the marginal utility of X is MUx, the total utility of X Questions require the use of economics content knowledge and reasoning across the range of course topics and skills in skill categories 1, 2, and 3. (E) More information is needed to answer the question. Match the following terms to the correct definitions. If George can make 2 surfboards or 10 bikes and Michelle can produce 4 surfboards or 12 bikes, which of the is TUx, the marginal utility of Y is MUy, and the total utility of Y is TUy. The Gini coefficient shows us how wealth is distributed and allocated. Unit 2: Economic Indicators and the Business Cycle. (B) Roger has absolute and comparative advantage in the production of longboards. _____________ 10. Using data from a sample of 42 credit card accounts, assume that each account was used to identify the annual credit card charges for groceries (population 1 ) and the annual credit card charges for dining out (population 2). The very last section in AP Micro examines how we measure the allocation of a nation's wealth. See the table below: If you are a mobile user, click here: Do AP Microeconomics Practice Questions. The law of increasing opportunity cost is reflected in the shape of the, (A) Production possibilities curve concave to the origin ("bowed-out"). An increase in inflation (D) The total utility of consuming two units is 110. E. An increase in construction jobs If the marginal cost of the next slice of pizza exceeds marginal benefit you will In a moment, you will open the packet that contains your exam materials. Directions: You are advised to spend the first 10 minutes reading all of the questions and planning your answers. -entrepreneurship (leaders), What are the 4 factors of production (classifications of resources), physical capital: human made resources like tools _____________ 1. resources. ___________ Any change in the quantity of labor supplied as a result of a change in income. Who to produce it for? Answer: D. B. Which of the following is true of the concept of increasing opportunity costs? _____________ 8. The E. A decrease in working-age population (A) The marginal utility of the first unit is 30. production of grain. (C) an iPad. (E) Michelle's opportunity cost for producing one surfboard is 3 bikes. (A) people's wants exceed the resources available to satisfy them. (D) MUx/Px = MUy/Py at$2.75\begin{array}{ll} &\text { ANOVA }\\ Based (C) The marginal utility of the second unit is 30. Already enrolled? It clearly lays out the course content and describes the exam and AP Program in general. Market labor supply curve (B) Japan has an absolute advantage in the production of cars, while Ukraine has a comparative advantage in the (B) not all goals are desirable. A depositary institution that specializes in loans for the purchase of homes and other real estate. A. production of grain. : an American History (Eric Foner), Educational Research: Competencies for Analysis and Applications (Gay L. R.; Mills Geoffrey E.; Airasian Peter W.), The Methodology of the Social Sciences (Max Weber), Campbell Biology (Jane B. Reece; Lisa A. Urry; Michael L. Cain; Steven A. Wasserman; Peter V. Minorsky), Business Law: Text and Cases (Kenneth W. Clarkson; Roger LeRoy Miller; Frank B. endobj <> (B) Roger has absolute and comparative advantage in the production of longboards. Unit 1 Basic Economic Concepts Problem Set #1. units ?2_p5NtDq{6MQEE7%Bv]0Y9-`O>FI>Ap;:;Nd(\Oq|iY$b|r,%%}zN-'E;'%|QZm7qN]h Note that this is strictly a change to the calculator policy and does not affect the exam format (number of sections, number of questions), the type of questions students may see on the exam, or the course skills. If not, how would it have to be altered? Model economic situations using graphs or visual representations. endobj This video covers all of the key points of Unit 1 from the AP Microeconomics Course Exam Description (CED). 408K views 2 years ago Microeconomics Unit 1: Basic Economic Concepts The Micro Unit 1 Summary video is designed to help you understand economics and goes hand-in-hand with my Ultimate. What methods did employers use in the early years of labor unions to fight the unions? (B) A straight-line production possibilities curve has a constant opportunity cost. C. A truck for a delivery company D. An increase in the resources to produce capital goods A) Political Decisions B) Providing a minimal standard of living for every person C) How to make a profit D) Hunger E) Scarcity Click the card to flip Definition 1 / 75 E Click the card to flip Flashcards Learn Your students can look up credit and placement policies for colleges and universities on theAP Credit Policy Search. D. Allocating scarce productive resources to satisfy wants \text { Within Groups } & \underline{12.04} & \frac{18}{20} & 0.67 & \\ E. The private sector is made up of the households, firms, and the government. You will then have 50 minutes to answer all three of the following questions. Answer: D, In which way does a straight-line production possibilities curve differ from a concave A. -there is full resource use Build a solid foundation in unit 1 of AP Macroeconomics. Scarcity Resource allocation and economic systems The Production Possibilities Curve Comparative advantage and gains from trade Cost-benefit analysis at$2.75. c>r$7/y9GoNzMKi\N(=oE:{m f. the connection between two variables that show the same effect, steady growth in the productive capacity of the economy (and so a growth of national income), the method used by a society to produce and distribute goods and services, an additional payment (or other remuneration) to employees as a means of increasing output, the monetary payment a firm must make to an outsider to obtain a resource, market in which firms purchase the factors of production from households, organization that employs resources to produce a good or service, The extra output that trading partners obtain through specialization of production and exchange of goods and services. C. Scarcity AP Microeconomics (HST530) 105 Documents. The present value of a bond is the value at which it should sell in the market. Answer: C, A. Learn how different types of economies make decisions about what to produce and how to distribute resources. _____________ 6. Learn all about the course and exam.

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