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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. Short-run aggregate supply curve
changes in consumer expectations
command economy
SRAS curve
structural unemployment
2. The proportion of each additional dollar of income that will go toward consumption expenditures.
hidden unemployment
marginal propensity to consume (MPC)
interest
government expenditures
3. A special tax imposed on imported goods.
cyclical unemployment
required reserve ratio (RRR)
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
tariff
4. 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 good
market supply curve
economics
unemployment rate
5. 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).
national income (NI)
expansionary fiscal policy
changes in consumer expectations
exchange rate
6. A shift of the demand curve resulting from a change in consumer taste and preferences.
number of composition of consumers
economics
consumer taste and preferences
expansionary fiscal policy
7. The price of a domestic currency in terms of a foreign currency.
Labor
law of demand
exchange rate
monetary policy
8. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
rule of 70
entrepreneurship
LRAS curv
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
9. The dollar value of all the goods and services sold to house holds.
elastic
simple money multiplier
Labor
consumption expenditures
10. A measure of the price level - or the average level of prices.
price index
neutral good
command economy
simple money multiplier
11. Long- run aggregate supply curve
labor force
LRAS curv
cyclical unemployment
consumer good
12. The income earned by households and profits earned by firms after subtracting.
quantity exchanged
microeconomics
national income (NI)
market supply curve
13. 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
demand elasticity
consumption expenditures
economic aggregates
14. Restrictions on the quantity of a good that can be imported
expenditure approach
import quotas
hyperinflation
microeconomics
15. Price control set when the market price is believed to be too low.
price floor
susbtitute goods
entrepreneurship
diminishing marginal utility
16. Not significantly responsive to changes in price.
resource
inflation
inelastic
price index
17. 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.
perfectly elastic
consumer income rise
scarcity
LRAS curv
18. 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
real GDP
microeconomics
individual choice
trough
19. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
real GDP
structural unemployment
recession
inflation
20. 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.
market equilibrium
diminishing marginal utility
price floor
hyperinflation
21. An increase in the price level
recession
inflation
total revenue
depression
22. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
inelastic
normal good
structural unemployment
23. The transition point between economic recession and recovery.
depression
A decrease in TR following an increase in price = elastic demand
depreciation
trough
24. The dollar value of production within a nation's border.
demand
rule of 70
Gross Domestic Product
scarcity
25. Anything that can be used to produce something else
resource
substitution effect
inverse relationship
import quotas
26. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
demand
consumer taste and preferences
law of supply
27. 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.
inflation
land
law of demand
aggregate demand curve
28. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
demand curve
simple money multiplier
quantity exchanged
scarcity
29. Government officials make decisions about economy.
command economy
inflation
national income (NI)
market economy
30. A Latin phrase meaning 'all things constant.'
price ceiling
trade deficit
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inelastic demand
31. The highest point of a business cycle.
national economic accounts
peak
consumer surplus
individual choice
32. 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.
import quotas
total revenue
price ceiling
stagflation
33. The effort of workers.
Labor
inelastic demand
demand curve shifts
scarcity
34. 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.
direct relationship
consumer income rise
hidden unemployment
inelastic
35. 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.
oligopoly
demand-pull inflation
total revenue
disposable personal income
36. 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 demand
demand-pull inflation
import quotas
Phillips curve
37. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.
tariff
inferior good
national income (NI)
aggregate demand curve
38. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
demand schedule
command economy
expenditure approach
unemployed
39. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
LRAS curv
inverse relationship
disposable personal income
Gross Domestic Product
40. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
complimentary goods
movement along a demand curve
market supply curve
inflation
41. 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
purchasing power
inflation
perfectly elastic
42. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
peak
economic aggregates
unemployment rate
land
43. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc
movement along a demand curve
unemployed
complimentary goods
expansion
44. 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
investment expenditures
market demand curve
demand-pull inflation
rule of 70
45. The willingness and ability of buyers to purchase a good or service.
demand
import quotas
exchange rate
opportunity cost
46. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
depression
expansion
stagflation
consumer income rise
47. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
market equilibrium
consumption expenditures
price floor
48. 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
trade deficit
Gross Domestic Product
economics
49. 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.
market equilibrium
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of supply
demand elasticity
50. A bad depressingly prolonged recession in economic activity.
consumer income rise
expansion
depression
simple money multiplier