AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

1. Allie is shopping when she finds a pair of running shoes priced at $90. When Allie uses her debit
card to pay, it is declined because her balance is insufficient to cover the cost of the running shoes.
Allie’s situation best illustrates which economic concept?

A Opportunity cost

B Scarcity

C Unlimited resources

D Trade-offs

E Trade

2. Which of the following is not a scarce resource?

A Land

B Labor

C Capital

D Entrepreneurship

E Stocks

3. Which of the following contributes to the economic problem of scarcity?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

A Human wants are insufficient.

B Resources are unlimited.

C Resources are efficient.

D Resources are expensive.

E Resources have alternative uses.

4. Which of the following illustrates the effect of a decrease in an economy’s resources using a
production possibilities curve ?

A The economy’s will shift inward and to the left.

B The economy’s will shift outward and to the right.

C The economy’s will become steeper.

D The economy’s will become flatter.

E The economy’s will remain the same.

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

5. Use the given production possibilities curve to answer the following question.

A city government received a million grant to build swimming pools and skating rinks for youth.
Based on the data provided in the graph, what is the opportunity cost of building one swimming
pool?

A skating rink

B swimming pool

C skating rinks

D swimming pools

E skating rinks

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

6. Use the graphs to answer the question below.

The shape of a illustrates the type of opportunity costs involved in production. What type of
costs do and illustrate?

A illustrates constant opportunity costs and illustrates increasing opportunity costs.

B illustrates constant opportunity costs and illustrates decreasing opportunity costs.

C illustrates increasing opportunity costs and illustrates decreasing opportunity costs.

D illustrates increasing opportunity costs and illustrates constant opportunity costs.

E illustrates decreasing opportunity costs and illustrates constant opportunity costs.

7. Use the table to answer the question below.

Trucks Coffee (in tons)

China

Malaysia
The table above shows the daily production possibilities for China and Malaysia in producing trucks
and coffee using the same amount of resources. Based on the data provided, which of the
following terms of trade are mutually beneficial for the two countries?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

A 1 ton of coffee for 3 trucks

B 1 ton of coffee for 4 trucks

C 1 ton of coffee for 5 trucks

D 1 truck for 1 ton of coffee

E 1 truck for 5 tons of coffee

8. Michael and Martha run a mechanic shop. In one hour Michael can perform eight oil changes or
change ten tires. In one hour Martha can perform seven oil changes or change fourteen tires.
Given this information which of the following is true?

A Martha has a comparative advantage in changing oil.

B Martha has an absolute advantage in changing oil.

C Michael has a comparative advantage in changing tires.

D Michael has an absolute advantage in changing tires.

E Michael has an absolute and a comparative advantage in changing oil.

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

9. The table below shows the landscaping productivity of Simone and Irina during an eight hour
workday. Simone can mow twelve lawns or trim twenty four trees in eight hours. Irina can mow nine
lawns or trim twelve trees in eight hours.
Mow Lawns Trim Trees
Simone

Irina
Based on the information in the table, which of the following is true?

A Irina has an absolute advantage in mowing lawns.

B Irina has an absolute advantage in trimming trees.

C Irina has a comparative advantage in trimming trees.

D Simone has an absolute advantage in trimming trees and mowing lawns.

E Simone has a comparative advantage in trimming trees and mowing lawns.

10. Which of the following describes the relationship between price and quantity demanded according
to the law of demand?

A Positive relationship, illustrated by an upward-sloping demand curve

B Positive relationship, illustrated by a downward-sloping demand curve

C Negative relationship, illustrated by a horizontal demand curve

D Negative relationship, illustrated by an upward-sloping demand curve

E Negative relationship, illustrated by a downward-sloping demand curve

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

11. Country is a major buyer of Country ’s grains. Assume Country ’s government announced an
increase in taxes on its imports of Country ’s grains effective next month. How will this news likely
affect consumers’ demand for grains in Country ?

A It will increase now because the tax on imported grains will increase the future price of grains.

B It will decrease now because the tax on imported grains will increase the future price of grains.

C It will not change now because the tax on imported grains will increase the future price of grains.

D It will increase now because the tax on imported grains will increase the current price of grains.

E It will decrease now because the tax on imported grains will increase the current price of grains.

12. Which of the following changes will increase the demand for bicycles?

A An increase in the price of bicycle helmets, a complementary good

B An increase in the price of scooters, a substitute good

C A decrease in the price of bicycles

D A decrease in consumers’ income

E A decrease in the number of buyers

13. Which of the following describes the relationship between price and quantity supplied according to
the law of supply?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

A Positive relationship, illustrated by an upward-sloping supply curve

B Positive relationship, illustrated by a downward-sloping supply curve

C Positive relationship, illustrated by a horizontal supply curve

D Negative relationship, illustrated by an upward-sloping supply curve

E Negative relationship, illustrated by a downward-sloping supply curve

14. Which of the following will increase the market supply for new automobiles?

A An increase in the price of steel, an input in the production of automobiles

B An increase in taxes on automobile manufacturers

C An increase in subsidies to automobile manufacturers

D An increase in consumers’ income

E An increase in the price of gasoline, a complementary good

15. Two nations sign a trade agreement expecting to enjoy mutual gains from the trade of a certain
good. How will this event likely affect the supply of the good in the two nations?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

A This event will likely cause a decrease in the quantity supplied of the good in both nations.

B This event will likely cause an increase in the quantity supplied of the good in both nations.

C This event will likely cause a decrease in the supply of the good in both nations.

D This event will likely cause an increase in the supply of the good in both nations.

E This event will likely have no effect on the good in either nation.

16. Use the table to answer the question below.

Price of Candy Bar Quantity Demanded Quantity Supplied
1000 0

775 100

600 250

525 525

375 700

200 975

50 1200
When the price of a candy bar is , which of the following is true?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

The market does not clear because the price is lower than the equilibrium price and there will be a
A
surplus in the market.

The market does not clear because the price is lower than the equilibrium price and there will be a
B
shortage in the market.

C The market clears because buyers and sellers are in agreement on the price.

The market does not clear because the price is higher than the equilibrium price and there will be a
D
surplus in the market.

The market does not clear because the price is higher than the equilibrium price and there will be a
E
shortage in the market.

17. Use the graph to answer the question below.

Matcha green tea is primarily cultivated by Japanese farmers. Suppose that Matcha green tea
grows in popularity as its health benefits, namely its lower caffeine content, become known, and at
the same time the government reduces taxes imposed on Japanese tea farmers. What is the likely
effect on the equilibrium price and quantity in the Japanese Matcha tea market?

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 AP Macroeconomics Scoring Guide

Unit 1 Progress Check: MCQ

A Price increases, and quantity increases.

B Price decreases, and quantity decreases.

C Price is indeterminate, and quantity increases.

D Price is indeterminate, and quantity decreases.

E Price decreases, and quantity is indeterminate.

18. Assume household income has fallen dramatically in Country X and the cost of construction
materials for building new houses has increased. How will these changes affect the equilibrium
price and equilibrium quantity for new houses?

A The equilibrium price will increase, and the equilibrium quantity will decrease.

B The equilibrium price will decrease, and the equilibrium quantity will decrease.

C The equilibrium price will decrease, and the equilibrium quantity will increase.

D The equilibrium price will decrease, and the equilibrium quantity will be indeterminate.

E The equilibrium price will be indeterminate, and the equilibrium quantity will decrease.

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