AP Microeconomics Final Exam Review Questions With Complete Solutions Opportunity cost - Correct Answers ✅The next best alternative given when a choice is made.PPC/PPF - Correct Answers ✅Production Possibilities Curve/Frontier.On the curve = efficient Inside the curve = inefficient Outside the curve = unattainable Can move outward by either trade, a new source of a resource, or technology.The Law of Increasing Opportunity Costs makes it possible for it to be bowed outward from the origin.Comparative advantage - Correct Answers ✅The ability of Trading Nation A to produce something at a lower opportunity cost than Trading Nation B Demand Determinants - Correct Answers ✅-Consumer Income -Consumer Tastes & Preferences -Expectations -Number of Buyers (Population) 1 / 2
AP Microeconomics Final Exam Review Questions With Complete Solutions -Price of Related Goods Supply Determinants - Correct Answers ✅-Cost of Inputs -Expectations -Government Regulation -Number of Sellers -Productivity -Taxes and Subsidies -Technology Ceilings - Correct Answers ✅-Legal maximum on the price at which a good can be sold at -Price set below market equilibrium makes it binding -Causes a shortage -Common for gas/apartments Floors - Correct Answers ✅-Legal minimum on the price at which a good can be sold at -Price set above market equilibrium makes it binding
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