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ModULE 1.1
5. Which of the following questions is studied in 6. A study of the unemployment rate in Brazil is part of
microeconomics? which branch of economics?
a. Should I go to college or get a job after I graduate? a. macroeconomics
b. What government policies should be adopted to b. microeconomics
promote employment in the economy? c. international
c. How many people are employed in the economy this d. normative
year? e. positive
d. Has the overall level of prices in the economy
increased or decreased this year? 7. All opportunity costs are
e. What determines the overall salary levels paid to a. nonmonetary.
workers in a given year? b. forgone monetary payments.
c. losses of time.
d. values of alternatives that must be given up.
e. related to educational opportunities.

®
Tackle the AP Test: Free-Response Questions

1. Define the term economics and explain why that
definition encompasses much more than money. Rubric for FRQ 1 (7 points)
Define the term resources and list the four categories of 1 point: Economics is the study of scarcity and choice.
resources. 1 point: Almost everything is scarce, so economics can
apply to almost everything.
2. In what type of economic analysis do questions have a
“right” or “wrong” answer? In what type of economic 1 point: Resources are anything that can be used to pro-
analysis do questions not necessarily have a “right” duce something else.
answer? What type of economics focuses on the big 1 point each: The four categories of the economy’s
picture in the economy? What type of economics focuses resources are land, labor, capital, and entrepreneurship.
on individuals, households, and firms? (4 points)

Module 1.1 Review 9
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