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Test your basic knowledge |
AP Macroeconomics
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Subjects
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economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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.
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. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
trough
government expenditures
law of demand
2. 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.
labor force
inflation
government expenditures
demand elasticity
3. 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
marginal propensity to consume (MPC)
structural unemployment
government expenditures
4. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
national income (NI)
trade surplus
elastic
cost-push inflation
5. The dollar value of production by a country's citizens.
hidden unemployment
susbtitute goods
Gross National Product
substitution effect
6. 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.
import quotas
simple money multiplier
expansion
oligopoly
7. Expenditure by businesses on plant and equipment and the change in business invention.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
investment expenditures
recession
real GDP
8. The dollar value of production within a nation's border.
Gross Domestic Product
changes in consumer expectations
elastic demand
expansion
9. The amount of a good actually sold.
economic aggregates
normal good
import quotas
quantity exchanged
10. 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?
inflation
demand elasticity
required reserve ratio (RRR)
marginal revenue
11. The effort of workers.
trough
Labor
marginal propensity to consume (MPC)
tariff
12. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
market equilibrium
cost-push inflation
scarcity
trade deficit
13. Price control set when the market price is believed to be too high.
perfectly elastic
disposable personal income
LRAS curv
price ceiling
14. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
hidden unemployment
demand-pull inflation
susbtitute goods
15. 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
macroeconomics
monopoly
fiscal policy
16. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
depression
structural unemployment
diminishing marginal utility
investment expenditures
17. Not significantly responsive to changes in price.
expansionary fiscal policy
SRAS curve
recession
inelastic
18. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.
demand schedule
individual choice
hidden unemployment
rule of 70
19. 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.
peak
unemployed
demand curve
microeconomics
20. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
land
depression
frictional unemployment
recession
21. Period in which a recession becomes prolonged and deep - involving high unemployment.
quantity exchanged
labor force
depression
microeconomics
22. 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.
diminishing marginal utility
elastic demand
trade deficit
neutral good
23. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
marginal propensity to consume (MPC)
economic aggregates
market economy
recession
24. The payment that capital receives in the factor market.
exchange rate
inelastic demand
command economy
interest
25. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).
opportunity cost
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expansionary fiscal policy
changes in consumer expectations
26. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
simple money multiplier
depreciation
susbtitute goods
monetary policy
27. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
consumption expenditures
law of demand
changes in consumer expectations
national income (NI)
28. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.
number of composition of consumers
macroeconomics
law of demand
consumer surplus
29. An increase or decrease in consumer income will cause a shift in the Demand Curve.
aggregate demand curve
consumer good
depression
unemployment rate
30. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
fiscal policy
labor force
consumption expenditures
normal good
31. 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).
trade surplus
market demand curve
quantity exchanged
inverse relationship
32. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
quantity exchanged
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer surplus
unemployment rate
33. Price control set when the market price is believed to be too low.
monetary policy
rule of 70
price floor
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
34. 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
expansion
hidden unemployment
microeconomics
law of demand
35. 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.
scarcity
inelastic demand
expansion
demand elasticity
36. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
hidden unemployment
Phillips curve
market equilibrium
exchange rate
37. Significantly responsive to a change in price.
number of composition of consumers
inverse relationship
monopoly
elastic
38. The study of scarcity and choice.
economics
aggregate demand curve
command economy
substitution effect
39. Fluctuations in real GDP around the trend value; also called economic fluctuations.
resource
entrepreneurship
business cycles
market equilibrium
40. The income of households after taxes have been paid
market economy
scarcity
consumer surplus
disposable personal income
41. Restrictions on the quantity of a good that can be imported
stagflation
import quotas
demand
command economy
42. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
monopoly
trade deficit
demand curve
A decrease in TR following an increase in price = elastic demand
43. The dollar value of all the goods and services sold to house holds.
depression
recession
consumption expenditures
consumer good
44. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.
demand curve shifts
Gross National Product
demand-pull inflation
inelastic
45. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
number of composition of consumers
inelastic
monopoly
46. The highest point of a business cycle.
peak
trade surplus
inelastic demand
monetary policy
47. A special tax imposed on imported goods.
cost-push inflation
individual choice
perfectly elastic
tariff
48. 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.
expansionary monetary policy
oligopoly
law of demand
purchasing power
49. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
expansionary monetary policy
frictional unemployment
fiscal policy
aggregate supply curve
50. A curve defining the relationship between real production and price level.
number of composition of consumers
price index
inverse relationship
aggregate supply curve
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