AP Macroeconomics Final Exam 2022 with complete solution

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AP Macroeconomics Final Exam 2022 with complete solution All economic systems must answer which of the following questions? I. What good should be produced II. Who should receive the goods produced... III. Where will the goods be produced? IV. How will resources be used in the production process? -Answer- I,II, and IV only. Which of the following statements about scarcity is not true? -Answer- Scarcity allows people to satisfy all their wants. A basic question that all economies must determine is -Answer- What goods will be produced. Mike asked Rachael to go to the beach with him. Rachael knew she should stay home and study for her Macroeconomics exam but felt she could spend some time doing both. In the past, she had always studied about five hours for her exams but today she studied for only two hours. Her normal grade of an A fell to a B. What was the opportunity cost of going to the beach? -Answer- The 3 hours she could have spent studying. Which of the following are factors that can shift the supply curve for concert tickets? a wage increase for musicians a cut in personal income taxes a new sound system for concert halls a subsidy for concert providers the price of substitutes for concerts -Answer- I, III, and IV only The graph above shows the market for trail mix snacks. Which of the following would cause a shift from D3 to D2? (It's a leftward shift on the ADAS graph) The price of fruit roll-up snacks decreases. The price of pretzel snacks increases. The price of trail mix snacks decreases. -Answer- I only The graph above shows the market for blue jeans in the United States. Which of the following would cause a shift from S3 to S2? (It's a leftward shift of supply) The price of blue jeans increases. The price of leather boots increases. The price of blue thread increases. -Answer- III only Given a normal market supply curve for milk, if the price of a gallon of milk increased from $3 to $4, then -Answer- There is an increase in the quantity supplied of milk. Connecticut ships large quantities of apples to all parts of the United States by rail. A hurricane destroys apple orchards in Connecticut before the apples are picked. Using the graphs above, select the graph that shows the impact of this event on the apple pie industry in the United States. -Answer- B. a leftward shift of supply Given a normal market supply curve for bicycles, if the government required warning labels on all bicycles, then there is a/an -Answer- Decrease in supply for bicycles. Given a normal market demand curve for M&M's®, if the price of chocolate increases, then -Answer- There is a decrease in the quantity demanded of M&M's®. If aloe balm was a free good, the production possibilities curve would look like choice -Answer- D. A straight vertical line If the government institutes an effective price ceiling on apartment rent, then there will be an -Answer- Increase in quantity demanded for apartments. If the government institutes an effective price ceiling on hamburgers, then there will be a -Answer- Decrease in quantity supplied of hamburgers. If the government institutes an effective price floor on volleyballs, then there will be a -Answer- Decrease in quantity demanded for volleyballs. Using all of their resources, Fred can produce 50 origami tea bags and 25 pairs of Technicolor tennis shoes while Christian can produce 30 origami tea bags and 3 pairs of Technicolor tennis shoes. Fred's opportunity cost of producing one pair of Technicolor tennis shoes is -Answer- Two origami tea bags A leftward shift in the demand for hot dogs could be caused by which of the following? -Answer- An increase in the price of hotdog buns If the working age population was 252 million of the 330 million people living in the United States and 176 million were employed while 12 million were unemployed, the size of the labor force would be -Answer- 188 million Which of the following would be considered unemployed? -Answer- A salesperson who is temporarily in between jobs When describing the four phases of the business cycle, the economy goes from -Answer- A peak to recession to a trough, into expansion and back to a peak. Which of the following is an example of cyclical unemployment? -Answer- Jerry lost his job as an insurance representative because sales are down all over the city [Show More]

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