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AP Intermediate 1st Year Unit 1A: Basic Economic Concepts and Production Systems — practice questions

Explore 5 free Unit 1A: Basic Economic Concepts and Production Systems questions in AP Intermediate 1st Year Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Unit 1A: Basic Economic Concepts and Production Systems questions and exercises with answers

Showing questions 1–5 of 5.

Two countries make the same good, and one of them simply makes more of it. That country holds the:Read the answer and worked solution →A country produces more than its neighbour because it has richer soil and better machines. Those are sources of:Read the answer and worked solution →A country can make a good while giving up less of other goods than its trading partner would. That is a:Read the answer and worked solution →An economics student asks which advantage actually explains why countries trade. The answer is:Read the answer and worked solution →A member of the British Parliament set out this idea in a treatise in 1817. He was:Read the answer and worked solution →

Worked practice questions

Two countries make the same good, and one of them simply makes more of it. That country holds the:

  1. Absolute advantage
  2. Marginal advantage
  3. Monetary advantage
  4. Seasonal advantage
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Correct answer: A. Absolute advantage

1. Only output is being compared. 2. One country produces more. 3. It holds the absolute advantage. _Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._

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A country produces more than its neighbour because it has richer soil and better machines. Those are sources of:

  1. Market failure risk
  2. Absolute advantage
  3. Trade deficit gap
  4. Price ceiling rule
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Correct answer: B. Absolute advantage

1. Resources and endowment are the reason. 2. The country can simply produce more. 3. They give absolute advantage. _Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._

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A country can make a good while giving up less of other goods than its trading partner would. That is a:

  1. Comparative advantage
  2. Nominal advantage
  3. Marginal deficit
  4. Absolute deficit
Show answer and solution

Correct answer: A. Comparative advantage

1. The cost is measured in other goods. 2. It gives up less than the partner. 3. It is a comparative advantage. _Source: OpenStax Principles of Economics 3e, Chapter 33, International Trade._

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