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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 income earned by households and profits earned by firms after subtracting.
consumer surplus
depression
national income (NI)
real GDP
2. The dollar value of all the goods and services sold to house holds.
consumption expenditures
Gross Domestic Product
hyperinflation
nominal GDP
3. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
consumer taste and preferences
interest
change in quantity demanded
fiscal policy
4. Real cost of an item is its opportunity cost.
investment expenditures
opportunity cost
expenditure approach
consumer good
5. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
real GDP
peak
money multiplier
monetary policy
6. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
tariff
unemployment rate
money multiplier
7. The payment that capital receives in the factor market.
unemployment rate
scarce
interest
price index
8. 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.
rule of 70
interest
frictional unemployment
inferior good
9. 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.
structural unemployment
recession
consumer taste and preferences
stagflation
10. 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.
macroeconomics
frictional unemployment
hidden unemployment
expansion
11. The effort of workers.
money multiplier
Labor
inelastic demand
consumer good
12. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
money multiplier
unemployment rate
substitution effect
13. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
Phillips curve
law of supply
entrepreneurship
inelastic
14. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
business cycles
trough
demand curve
scarce
15. Restrictions on the quantity of a good that can be imported
required reserve ratio (RRR)
import quotas
consumer surplus
neutral good
16. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
neutral good
Phillips curve
consumer surplus
fiscal policy
17. A special tax imposed on imported goods.
tariff
investment expenditures
susbtitute goods
Phillips curve
18. 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
law of supply
command economy
unemployed
scarce
19. The income of households after taxes have been paid
monetary policy
law of demand
disposable personal income
hidden unemployment
20. Rising prices - across the board.
consumer surplus
inflation
law of supply
diminishing marginal utility
21. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
labor force
SRAS curve
depreciation
opportunity cost
22. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
monetary policy
movement along a demand curve
demand curve shifts
expansionary monetary policy
23. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
resource
normal good
A decrease in TR following an increase in price = elastic demand
recession
24. The sum of all the quantities of a good supplies by all producers at each price.
labor force
market supply curve
real GDP
stagflation
25. 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.
demand-pull inflation
inelastic demand
SRAS curve
fiscal policy
26. 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
A decrease in TR following an increase in price = elastic demand
resource
aggregate demand curve
27. Short-run aggregate supply curve
SRAS curve
total revenue
land
economics
28. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
inflation
command economy
diminishing marginal utility
labor force
29. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
inverse relationship
consumer income rise
Gross National Product
trough
30. The amount of money available to consumers to purchase goods and services.
stagflation
depreciation
purchasing power
marginal revenue
31. 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.
price index
hyperinflation
movement along a demand curve
demand curve shifts
32. A shift of the demand curve resulting from a change in consumer taste and preferences.
economics
government expenditures
consumer taste and preferences
demand schedule
33. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
frictional unemployment
recession
law of demand
government expenditures
34. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
consumption expenditures
total revenue
diminishing marginal utility
35. The dollar value of production within a nation's border.
elastic demand
required reserve ratio (RRR)
unit elastic
Gross Domestic Product
36. 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.
recession
fiscal policy
inelastic
perfectly elastic
37. Decisions by individuals about what to do and what not to do.
consumer income rise
quantity exchanged
individual choice
expansion
38. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
fiscal policy
scarce
Gross Domestic Product
inflation
39. 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).
national income (NI)
hidden unemployment
perfectly elastic
unemployment rate
40. 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?
inelastic
demand elasticity
elastic demand
consumer good
41. 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.
price index
labor force
SRAS curve
inverse relationship
42. 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).
substitution effect
perfectly elastic
microeconomics
market demand curve
43. 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.
SRAS curve
depression
microeconomics
resource
44. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
government expenditures
substitution effect
required reserve ratio (RRR)
consumer good
45. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
entrepreneurship
price index
depreciation
46. (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.
Phillips curve
perfectly elastic
number of composition of consumers
disposable personal income
47. 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
price ceiling
inelastic
law of demand
real GDP
48. Price control set when the market price is believed to be too low.
frictional unemployment
price floor
aggregate demand curve
demand elasticity
49. 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.
purchasing power
demand curve shifts
price ceiling
market economy
50. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
depression
trade deficit
market economy
LRAS curv