https://docs.google.com/document/d/1mB_7Hr3jfMiTmld3gn8SXrgl7PM5iHRonYr8mFQ956I/edit

AP Macro Module 1

AP Macroeconomics
1.03

1. a) If I go to the beach, the opportunity cost is that I will not be prepared for the exam; likewise, if I study for the exam, the opportunity cost is that I will not be having fun at the beach. b) If I get a job after high school, the opportunity cost is that I will miss out on a college education; likewise, if I go to college, the opportunity cost is that I will not be making money, as I will not have a job. c) If I leave early for school, the opportunity cost is that I will not have had breakfast; likewise, if I have breakfast, the opportunity cost is that I will arrive …show more content…

Points earned on this question: 3

Question 10 (Worth 3 points)
An economy that is not using all of its resources would be operating on the line closer to the vertical axis. be operating on the line closer to the horizontal axis. be operating inside the production possibilities curve. be operating outside the production possibilities curve. be suffering from high inflation.
Points earned on this question: 3

Your score on this exam is 40 out of 40 .
Instructions: Multiple Choice Questions: Each of the multiple choice questions or incomplete statements below is followed by suggested answers or completions. Select the one that is best in each case.

Free Response Questions: Respond to the questions in the text boxes provided. In answering questions, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Clearly label each part of the answer. Only text that is included in the text boxes will be scored. Diagrams, if required, should be sent to your instructor via e-mail or fax.

Answer Key

Question 1 (Worth 20 points) Carl's Production

Wanda's Production

Baskets

Hats

Baskets

Hats

100