AP Microeconomics / Newest Actual Exam Review Q&A Definitive Answers / A+ Score Solutions.Quiz____?Economics - Answer✓✓ The study of how people, firms, and societies use their scarce productive resources to best satisfy their unlimited material wants.Quiz____?Resources - Answer✓✓
Factors of production, 4 categories: labor, physical capital, land/natural
resources, and entrepreneurial ability Quiz____?Scarcity - Answer✓✓ The imbalance between limited productive resources and unlimited human wants Quiz____?Opportunity Cost - Answer✓✓ The most desirable alternative given up as the result of a decision Page 1 of 27 1 / 3
Quiz____?Marginal Benefit (MB) - Answer✓✓ The additional benefit received from the consumption of the next unit of a good or service Quiz____?Marginal Cost (MC) - Answer✓✓ The additional cost incurred from the consumption of the next unit of a good or a service Quiz____?Marginal Analysis - Answer✓✓ The rational decision maker chooses an action if MB ≥ MC Quiz____?Law of Increasing Costs - Answer✓✓ The more of a good that is produced, the greater the opportunity cost of producing the next unit of that good Quiz____?Page 2 of 27 2 / 3
Absolute Advantage - Answer✓✓ Exists if a producer can produce more of a good than all other producers Quiz____?Comparative Advantage - Answer✓✓ Exists if a producer can produce a good at lower opportunity cost than all other producers Quiz____?Specialization - Answer✓✓ When firms focus their resources on production of goods for which they have comparative advantage Quiz____?Productive Efficiency - Answer✓✓ Production of maximum output for a given level of technology and resources. All points on the PPF are productively efficient Quiz____?Allocative Efficiency - Answer✓✓ Page 3 of 27
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