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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. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market demand curve
consumption expenditures
inelastic demand
2. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
cyclical unemployment
entrepreneurship
law of demand
Gross Domestic Product
3. 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.
market supply curve
stagflation
microeconomics
unemployment rate
4. The income of households after taxes have been paid
disposable personal income
changes in consumer expectations
stagflation
Gross National Product
5. The proportion of each additional dollar of income that will go toward consumption expenditures.
number of composition of consumers
marginal propensity to consume (MPC)
consumer good
import quotas
6. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand-pull inflation
diminishing marginal utility
demand elasticity
inferior good
7. Short-run aggregate supply curve
SRAS curve
price floor
inelastic
consumption expenditures
8. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
command economy
marginal revenue
susbtitute goods
cyclical unemployment
9. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
peak
national economic accounts
substitution effect
10. Real cost of an item is its opportunity cost.
price index
opportunity cost
market economy
economic aggregates
11. Anything that shows the economy as a whole.
perfectly elastic
peak
complimentary goods
economic aggregates
12. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
inelastic
business cycles
demand curve
Marginal Propensity to Save (MPS)
13. An industry structure in which there is only one seller for a product.
substitution effect
monopoly
rule of 70
fiscal policy
14. 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.
marginal revenue
movement along a demand curve
national income (NI)
stagflation
15. Rising prices - across the board.
complimentary goods
expansion
inflation
monopoly
16. 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?
demand elasticity
aggregate demand curve
government expenditures
labor force
17. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.
peak
labor force
demand curve shifts
national economic accounts
18. The sum of all the quantities of a good supplies by all producers at each price.
macroeconomics
recession
market supply curve
oligopoly
19. The transition point between economic recession and recovery.
unemployment rate
inelastic
Phillips curve
trough
20. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
A decrease in TR following an increase in price = elastic demand
consumer income rise
required reserve ratio (RRR)
21. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
Gross Domestic Product
perfectly elastic
unemployment rate
normal good
22. The effort of workers.
change in quantity demanded
simple money multiplier
perfectly elastic
Labor
23. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
aggregate demand curve
labor force
expansionary monetary policy
economics
24. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
demand schedule
marginal revenue
A decrease in TR following an increase in price = elastic demand
cost-push inflation
25. A special tax imposed on imported goods.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
economics
exchange rate
tariff
26. 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).
change in quantity demanded
neutral good
law of supply
market demand curve
27. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount
expansionary monetary policy
hidden unemployment
simple money multiplier
LRAS curv
28. 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.
total revenue
consumer taste and preferences
inelastic demand
demand
29. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
total revenue
economic aggregates
national income (NI)
30. The income earned by households and profits earned by firms after subtracting.
national income (NI)
peak
demand curve shifts
trough
31. When the percent of change in the quantity demanded equals the percent of change in price.
depression
stagflation
unit elastic
structural unemployment
32. 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.
consumption expenditures
A decrease in TR following an increase in price = elastic demand
frictional unemployment
changes in consumer expectations
33. 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.
change in quantity demanded
Gross National Product
aggregate demand curve
national income (NI)
34. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
law of supply
business cycles
recession
consumption expenditures
35. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
susbtitute goods
perfectly elastic
A decrease in TR following an increase in price = elastic demand
expansion
36. Fluctuations in real GDP around the trend value; also called economic fluctuations.
unit elastic
Marginal Propensity to Save (MPS)
business cycles
trade surplus
37. The dollar value of production by a country's citizens.
market supply curve
structural unemployment
quantity exchanged
Gross National Product
38. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
demand schedule
demand curve shifts
money multiplier
marginal revenue
39. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
tariff
scarcity
unit elastic
number of composition of consumers
40. Consumer income rise - demand will rise.
consumer good
inverse relationship
neutral good
Marginal Propensity to Save (MPS)
41. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
quantity exchanged
demand
consumption expenditures
expenditure approach
42. 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.
elastic
disposable personal income
elastic demand
LRAS curv
43. 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.
entrepreneurship
change in quantity demanded
economics
changes in consumer expectations
44. A measure of the price level - or the average level of prices.
inflation
price index
market economy
Phillips curve
45. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
Marginal Propensity to Save (MPS)
consumer surplus
depreciation
46. The highest point of a business cycle.
investment expenditures
demand-pull inflation
exchange rate
peak
47. Price control set when the market price is believed to be too low.
demand curve
change in quantity demanded
price floor
changes in consumer expectations
48. The willingness and ability of buyers to purchase a good or service.
inelastic demand
demand
inverse relationship
price floor
49. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
purchasing power
inelastic demand
simple money multiplier
law of 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.
inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market equilibrium
trough