1.7 Multiple Choice Questions

Welcome to Unit 1 AP Macroeconomics Multiple Choice Questions! Grab some paper and a pencil 📄 to record your answers as you go. You can see how you did on the Unit 1 Practice Questions Answers and Review sheet once you're done. Don't worry, we have tons of resources available if you get stumped 😕 on a question. And if solo study is not your thing, join a group in Hours!

Not ready to take a quiz yet? Take a look at the Intro to Unit 1.

Facts about the test: The AP Microeconomics exam has 70 multiple choice questions and you will be given 1 hour to complete the section. That means it should take you around 8 minutes to complete 10 questions.

A. we have unlimited wants and unlimited resources

B. our wants are greater than available resources

C. our resources are greater than our wants

D. resources are employed fully to minimize waste

A. scarcity

B. resources

C. trade-offs

D. time value of money

A. an inefficient use of resources

B. an efficient use of resources

C. not possible given current resources

D. a better use of resources

A. decreasing opportunity costs

B. constant opportunity costs

C. no opportunity costs

D. increasing opportunity costs

A.  isolate production

B. make more money

C. despecialize and consume within their original PPCs

D. specialize and consume outside their original PPCs

A. producer A has the absolute advantage in producing aloe

B. producer B has the absolute advantage in chocolate

C. producer B has the comparative advantage in producing chocolate

D. producer B has the comparative advantage in producing aloe

A. the church

B. the government

C. market interactions between buyers and sellers

D. popular vote

A. calculated risk

B. absolute advantage

C. marginal revenue

D. opportunity cost

A. total utility of consuming both lattes is 37

B. total utility of consuming both lattes is 3

C. the marginal utility for the second latte is 3

D. the marginal utility for consuming the third latte is 7

A. marginal cost is of no significance

B. marginal benefit is of no significance

C. marginal benefit should be less than marginal cost

D. marginal benefit should outweigh marginal cost

A. central decision-making body  

B. property rights

C. scarce resources

D. supply

A. entrepreneurship

B. supply and demand

C. externalities

D. deficits

A. the PPC would shift outward/to the right

B. the PPC would shift inward/to the left

C. there would be no movement in the PPC

D. there would be mass unemployment and higher price levels

A. a decrease in the supply of consumer goods

B. an increase in the supply of capital goods

C. improvements in computer processors

D. a deep freeze that knocks out power grids, causing mass power outages

A. a straight line

B. bowed outward

C. bowed inward

D. upward sloping