AP Microeconomics Unit 1: Basic Economic Concepts
Review AP Microeconomics Unit 1 through trade-offs, comparative advantage, cost-benefit reasoning, marginal analysis, and consumer choice.
- Syllabus
- Effective Fall 2025
- Course
- AP Microeconomics
Covered syllabus points
Unit 1: Basic Economic Concepts question 1
38. Which of the following is an example of physical capital?
A
Earnings from a job
B
Fish in the ocean
C
Money in a person's wallet
D
An unskilled worker
E
A tractor used in farming
Unit 1: Basic Economic Concepts question 2
Which of the following would NOT be considered a characteristic of a market or capitalistic economy but that of a command or communist economy?
A
Protection of private property
B
Negative externalities
C
The price system to allocate resources
D
Competition among firms
E
Centralized decision making
Unit 1: Basic Economic Concepts question 3
What law best describes a production possibilites curve that has a bowed out or concave shape from the origin?
A
The law of productive efficiency
B
The law of diminishing marginal utility
C
The law of increasing opportunity cost
D
The law of supply
E
The law of demand
Unit 1: Basic Economic Concepts question 4
The graph shows the production possibilities curves for Northland and Southland.
Question (a)
(a)
Which country has a comparative advantage in producing wheat? Explain using numbers.
[ 1 ]
Question (b)
(b)
Identify a specific number of yards of cloth that could be traded for 10 bushels of wheat and would be mutually beneficial to Northland and Southland.
[ 1 ]
Question (c)
(c)
Southland's maximum possible output of wheat falls from 100 bushels to 75 bushels. Assuming no other changes, will Southland have a comparative advantage in producing cloth? Explain using numbers.
[ 1 ]
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