AP®︎ Macroeconomics: Topic 1.2 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 1.2 of AP Macroeconomics – Opportunity Cost and the Production Possibilities Curve (PPC).
Questions List
Topic 1.2
Question 1 Easy
This question tests the following: MOD-1.B.1
What does the Production Possibilities Curve (PPC) show?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 1.2: Opportunity Cost and the Production Possibilities Curve (PPC)
Learning Objective: MOD-1.B
a. Define (using graphs as appropriate) the PPC and related terms. b. Explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions. c. Calculate (using data from PPCs or tables as appropriate) opportunity cost.
Essential Knowledge: MOD-1.B.1
The PPC is a model used to show the tradeoffs associated with allocating resources.
Essential Knowledge: MOD-1.B.2
The PPC can be used to illustrate the concepts of scarcity, opportunity cost, efficiency, underutilized resources, and economic growth or contraction.
Essential Knowledge: MOD-1.B.3
The shape of the PPC depends on whether opportunity costs are constant, increasing, or decreasing.
Essential Knowledge: MOD-1.B.4
The PPC can shift because of changes in factors of production as well as changes in productivity/technology.
Essential Knowledge: MOD-1.B.5
Economic growth results in an outward shift of the PPC.
