Ap Economics Study Questions

AP Economics Final Exam Study Sheet v2010 (Mankiw) 1. Economics deals primarily with the concept of? 2. Economists use the word equity to describe†¦? 3. What you give up to obtain an item is called your 4. A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operation in order to make more tables. Should she expand? 5. Rational people make decisions at the margin by†¦? 6. The term market failure refers to†¦? 7. An example of an externality? 8. Productivity is defined as? 9. An increase in the overall level of prices in an economy is referred to as? 10. Which of the following items is not a factor of production? 11. Which markets are represented in the simple circular-flow diagram? 12. Production is efficient if the economy is producing at a point†¦.? 13. (Production Possibilities Graph). The economy has the ability to produce at which point or points? 14. A production possibilities frontier shifts outward when†¦? 15. Trade can make everybody better off because it†¦? 6. For each good produced in a market economy, the interaction of demand and supply determines†¦? 17. A competitive market is a market in which†¦? 18. A monopoly is†¦? 19. A likely example of complementary goods for most people would be†¦? 20. A likely example of substitute goods for most people would be†¦? 21. The law of demand says†¦? 22. (Demand Graph) The movement from point A to point B on the graph would be cau sed by†¦? 23. An increase in demand is represented by†¦? 24. According to the law of supply†¦? 25. If the number of sellers in a market increases, what conditions would you expect? 26. (Supply Graph) The movement from S to S1 is called? 27. (Supply Graph) The movement from S to S1 could be caused by? 28. The unique point at which the supply and demand curves intersect is called†¦? 29. (Supply and Demand Graph) Equilibrium price and quantity are? 30. (Supply and Demand Graph) Determine price and quantity 31. (Four different Supply and Demand Graphs) Which of the four graphs represent the market for peanut butter after a major hurricane hits the peanut-growing south? 32. Four different Supply and Demand Graphs) Which of the four graphs represents the market for winter coats as we progress from winter to spring? 33. (Four different Supply and Demand Graphs) Which of the four graphs illustrates an increase in quantity supplied? 34. During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to human health. As a result , there has been a significant decrease in the amount of beef produced. Which of the following best explains the decrease in production? 35. In general, elasticity is a measure of†¦?