Name: ________________

AP MICROECONOMICS QUIZ
1. Explain why the demand curve is downward sloping and supply curve is upward sloping.

2. The law of demand states that:

3. After the threat of a virus that infected the chicken industry, demand for pork meat increased substantially. In this
case we consider chicken and pork meat to be related as:

4. What term is used to refer to the limited nature of society's resources?

5. Explain the difference between demand and quantity demanded. What are the causes of change in demand and
quantity demanded?

6. “A production possibility curve demonstrates the concepts of scarcity, choices, and opportunity cost” Explain this
statement.

7. Why is the concept of ceteris paribus important to economic analysis?

8. What are the factors of production?

9. Explain how the prices of factors of production can affect the supply of goods/services.

10. Explain the difference between a movement along the demand curve and a shift in the demand curve.

11. What is the difference between scarcity and a shortage? Why are they not the same?

12. Identify the relationship of trade, including comparative and absolute advantage, to the decisions
made by domestic firms.

13. You have to make a decision. Your favorite band is having a concert in town and you really want to go! The tickets
are expensive, though, and there are so many things you could do with that money. You could:

 Buy the concert ticket

 Use the money to buy the band’s new DVD plus a pair of jeans
 Save the money for your vacation
 Use the money to see five movies

a) What will you do? Choose one of the above or something else and explain why you made your choice.
Name: ________________

b) What does Economics mean to you? What does it have to do with the example above?

c) What do you think of when you hear the word Scarcity or Scarce? Explain using the example above.

13. Complete the following table:

Scenario Demand Increase Shifter Price
or or (Up or down)
Supply Decrease
1 Dog food workers go on strike.
That’s ruff!
2 The economy goes into a
depression causing incomes to
decrease (Dog food is a normal
good).
3 The price of dog bowls, a
complement to dog food, decreases
4 The price of kibbles and meats, key
resources in the production of dog
food, decreases.
5 Dog food producers
increase the price of dog food.
6 A reputable research
institute announces that dogs who
eat this type of dog food behave
better at home.
7 The government places a per-unit
tax on dog food manufacturers.
8 Technology improves for dog food
manufacturers.
9 The supply of dog treats, a close
substitute of dog food, increases.
10 An increase in dog
ownership.
11 In order to promote
American production, the
government subsidizes dog food
producers.
12 New firms begin to start making
dog food.
13 The government
establishes a binding
price ceiling for dog
food.
14 The popularity of the dog food
increases at the same time new
technology lowers
production costs.