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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. The addition to total revenue created by selling one additional unit of ouput.
LRAS curv
normal good
expansionary monetary policy
marginal revenue
2. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
change in quantity demanded
fiscal policy
exchange rate
expenditure approach
3. Consumer income rise - demand will rise.
oligopoly
neutral good
perfectly elastic
economic aggregates
4. Price control set when the market price is believed to be too high.
changes in consumer expectations
price ceiling
import quotas
rule of 70
5. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
quantity exchanged
labor force
marginal revenue
6. 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.
opportunity cost
perfectly elastic
import quotas
inelastic demand
7. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
law of supply
price ceiling
import quotas
8. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
government expenditures
unemployment rate
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
9. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
market demand curve
labor force
complimentary goods
scarcity
10. A bad depressingly prolonged recession in economic activity.
depression
resource
land
economic aggregates
11. 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?
trough
demand elasticity
elastic demand
market economy
12. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
fiscal policy
command economy
depression
13. Short-run aggregate supply curve
consumer good
SRAS curve
demand elasticity
entrepreneurship
14. Fluctuations in real GDP around the trend value; also called economic fluctuations.
government expenditures
business cycles
opportunity cost
monopoly
15. The dollar value of goods and services sold to governments.
government expenditures
SRAS curve
money multiplier
depression
16. Real cost of an item is its opportunity cost.
inelastic
opportunity cost
monetary policy
normal good
17. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
consumer good
expenditure approach
scarce
opportunity cost
18. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
Gross Domestic Product
change in quantity demanded
price floor
money multiplier
19. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
susbtitute goods
trade deficit
peak
law of demand
20. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
LRAS curv
investment expenditures
expansionary fiscal policy
recession
21. The study of scarcity and choice.
depression
economics
market equilibrium
substitution effect
22. 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
cyclical unemployment
fiscal policy
demand elasticity
23. The cost of something in terms of what one must give up to get it.
cyclical unemployment
demand
opportunity cost
scarce
24. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
monetary policy
total revenue
consumer income rise
trade surplus
25. 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
substitution effect
susbtitute goods
nominal GDP
hidden unemployment
26. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
elastic
neutral good
inverse relationship
market equilibrium
27. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
marginal propensity to consume (MPC)
consumer good
demand elasticity
law of supply
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
complimentary goods
depression
hidden unemployment
29. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
peak
Marginal Propensity to Save (MPS)
inverse relationship
A decrease in TR following an increase in price = elastic demand
30. An increase or decrease in consumer income will cause a shift in the Demand Curve.
cyclical unemployment
consumer good
market equilibrium
market economy
31. A Latin phrase meaning 'all things constant.'
monopoly
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
business cycles
expansionary monetary policy
32. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.
simple money multiplier
inelastic
consumer surplus
trade surplus
33. An industry structure in which there is only one seller for a product.
macroeconomics
monopoly
inflation
aggregate demand curve
34. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
economic aggregates
macroeconomics
market economy
unemployed
35. The payment that capital receives in the factor market.
entrepreneurship
changes in consumer expectations
interest
consumer income rise
36. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.
frictional unemployment
market economy
oligopoly
labor force
37. 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.
number of composition of consumers
substitution effect
oligopoly
LRAS curv
38. An increase in the price level
changes in consumer expectations
economics
inflation
depression
39. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
tariff
trade deficit
susbtitute goods
expansionary fiscal policy
40. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
microeconomics
unemployment rate
expansion
41. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
monopoly
aggregate demand curve
normal good
42. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.
disposable personal income
price index
susbtitute goods
change in quantity demanded
43. The deliberate control of the money supply by the Federal government.
monetary policy
law of demand
opportunity cost
microeconomics
44. 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.
unit elastic
fiscal policy
aggregate demand curve
demand schedule
45. The amount of money available to consumers to purchase goods and services.
simple money multiplier
opportunity cost
oligopoly
purchasing power
46. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
SRAS curve
substitution effect
stagflation
simple money multiplier
47. The dollar value of all the goods and services sold to house holds.
money multiplier
land
demand-pull inflation
consumption expenditures
48. Goods that go together - if price ? the demand for both that good and complimentary good ?.
disposable personal income
complimentary goods
tariff
unemployment rate
49. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.
hidden unemployment
elastic demand
inferior good
marginal revenue
50. 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.
inelastic demand
unit elastic
price floor
market supply curve