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Test your basic knowledge |
AP Macroeconomics
Start Test
Study First
Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Decisions by individuals about what to do and what not to do.
individual choice
demand
simple money multiplier
trade surplus
2. The price of a domestic currency in terms of a foreign currency.
demand elasticity
expansionary fiscal policy
exchange rate
unit elastic
3. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.
complimentary goods
depression
number of composition of consumers
hyperinflation
4. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
demand curve shifts
macroeconomics
stagflation
government expenditures
5. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr
resource
stagflation
hidden unemployment
real GDP
6. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?
microeconomics
frictional unemployment
opportunity cost
demand elasticity
7. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
substitution effect
disposable personal income
change in quantity demanded
changes in consumer expectations
8. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
trade surplus
Gross National Product
marginal revenue
scarce
9. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc
disposable personal income
demand curve
real GDP
rule of 70
10. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand
Phillips curve
consumer income rise
diminishing marginal utility
11. Short-run aggregate supply curve
Gross Domestic Product
SRAS curve
consumer good
individual choice
12. Price control set when the market price is believed to be too high.
price ceiling
money multiplier
consumer good
unemployed
13. When the percent of change in the quantity demanded equals the percent of change in price.
rule of 70
labor force
price ceiling
unit elastic
14. The amount of a good actually sold.
consumption expenditures
quantity exchanged
depreciation
inverse relationship
15. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.
aggregate demand curve
economic aggregates
market demand curve
depreciation
16. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
inelastic
structural unemployment
expansion
Gross Domestic Product
17. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
Gross Domestic Product
trade deficit
substitution effect
SRAS curve
18. Restrictions on the quantity of a good that can be imported
oligopoly
import quotas
scarce
marginal propensity to consume (MPC)
19. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.
investment expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unit elastic
perfectly elastic
20. A bad depressingly prolonged recession in economic activity.
inflation
trade deficit
normal good
depression
21. The proportion of each additional dollar of income that is saved.
market economy
national economic accounts
entrepreneurship
Marginal Propensity to Save (MPS)
22. A curve defining the relationship between real production and price level.
law of demand
aggregate supply curve
business cycle
real GDP
23. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
depreciation
price index
inverse relationship
neutral good
24. Anything that can be used to produce something else
Phillips curve
opportunity cost
hyperinflation
resource
25. A special tax imposed on imported goods.
peak
business cycles
recession
tariff
26. The income of households after taxes have been paid
disposable personal income
economic aggregates
scarce
fiscal policy
27. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc
consumer surplus
nominal GDP
neutral good
law of demand
28. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
nominal GDP
quantity exchanged
demand
29. Long- run aggregate supply curve
law of demand
macroeconomics
LRAS curv
change in quantity demanded
30. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
Gross Domestic Product
depreciation
inflation
money multiplier
31. Consumer income rise - demand will rise.
marginal propensity to consume (MPC)
neutral good
LRAS curv
depression
32. Significantly responsive to a change in price.
elastic
price index
recession
Marginal Propensity to Save (MPS)
33. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
inflation
unemployment rate
real GDP
34. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
cost-push inflation
entrepreneurship
LRAS curv
fiscal policy
35. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.
monopoly
elastic demand
resource
unit elastic
36. The lowest point of a business cycle
structural unemployment
trough
simple money multiplier
opportunity cost
37. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
trade deficit
complimentary goods
inflation
movement along a demand curve
38. An increase or decrease in consumer income will cause a shift in the Demand Curve.
command economy
price floor
consumer good
expansionary monetary policy
39. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
consumer surplus
import quotas
unit elastic
macroeconomics
40. The willingness and ability of buyers to purchase a good or service.
interest
perfectly elastic
depression
demand
41. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.
inferior good
price floor
consumer good
oligopoly
42. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.
microeconomics
demand curve
trough
command economy
43. The payment that capital receives in the factor market.
resource
required reserve ratio (RRR)
opportunity cost
interest
44. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).
consumer income rise
unemployment rate
elastic demand
monopoly
45. The sum of all the quantities of a good supplies by all producers at each price.
susbtitute goods
market supply curve
consumption expenditures
disposable personal income
46. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumption expenditures
aggregate supply curve
consumer taste and preferences
microeconomics
47. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
labor force
national income (NI)
macroeconomics
susbtitute goods
48. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
Marginal Propensity to Save (MPS)
demand curve
price floor
economic aggregates
49. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.
consumer income rise
consumer surplus
demand curve shifts
inelastic demand
50. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
law of demand
exchange rate
hyperinflation
market equilibrium