📚

All Subjects

🤑

AP Micro

💸

Unit 1

1.7 Multiple Choice Questions

4 min read•march 25, 2023

AP Microeconomics 🤑

95 resources

See Units

Multiple Choice Practice for Basic Economic Concepts

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.

Image courtesy of Pixabay

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.

*The following questions were not written by College Board and, although they cover information outlined in the AP Microeconomics Course and Exam Description, the formatting on the exam may be different.

1. Scarcity is when...

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

2. Instead of studying for your test, you could have cooked dinner, went to the movies, or exercised. These alternatives represent your...

A. scarcity

B. resources

C. trade-offs

D. time value of money

3. A point located inside the production possibilities curve is thought of as...

A. an inefficient use of resources

B. an efficient use of resources

C. not possible given current resources

D. a better use of resources

4. A PPC that is bowed outward represents...

A. decreasing opportunity costs

B. constant opportunity costs

C. no opportunity costs

D. increasing opportunity costs

5. Trade helps two countries by allowing them to...

A. isolate production

B. make more money

C. despecialize and consume within their original PPCs

D. specialize and consume outside their original PPCs

6. Producer A can produce either 5 units of chocolate or 10 aloe plants per day. Producer B can produce either 3 units of chocolate or 12 aloe plants per day. Based on this information, which of the following is true?

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

7. Prices in a market economy are set by...

A. the church

B. the government

C. market interactions between buyers and sellers

D. popular vote

8. Anna has two hours of free time on Friday night that can be spent studying or watching TV. Anna decides to watch TV. Studying becomes Anna's...

A. calculated risk

B. absolute advantage

C. marginal revenue

D. opportunity cost

9. Which of the following is true if consuming one latte yields 20 utils and consuming the second latte increases satisfaction by 17 utils?

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

10. When making a rational decision, economists would point out that...

A. marginal cost is of no significance

B. marginal benefit is of no significance