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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 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
recession
scarcity
nominal GDP
unemployed
2. Restrictions on the quantity of a good that can be imported
elastic demand
inflation
import quotas
opportunity cost
3. Long- run aggregate supply curve
frictional unemployment
LRAS curv
fiscal policy
total revenue
4. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
expansion
number of composition of consumers
consumer good
5. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
perfectly elastic
fiscal policy
microeconomics
depression
6. 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.
unit elastic
price ceiling
Phillips curve
hyperinflation
7. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
perfectly elastic
price index
cyclical unemployment
substitution effect
8. 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 fiscal policy
aggregate demand curve
oligopoly
Phillips curve
9. Significantly responsive to a change in price.
elastic
inflation
demand schedule
nominal GDP
10. 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.
complimentary goods
demand schedule
Phillips curve
trough
11. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
consumer surplus
Gross National Product
consumption expenditures
12. The transition point between economic recession and recovery.
demand curve
trough
simple money multiplier
total revenue
13. A bad depressingly prolonged recession in economic activity.
cost-push inflation
depression
rule of 70
national economic accounts
14. The price of a domestic currency in terms of a foreign currency.
opportunity cost
exchange rate
import quotas
consumer good
15. 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
expansionary monetary policy
market economy
macroeconomics
16. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
monopoly
A decrease in TR following an increase in price = elastic demand
diminishing marginal utility
normal good
17. 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.
marginal revenue
LRAS curv
oligopoly
aggregate demand curve
18. 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.
structural unemployment
cost-push inflation
inelastic demand
consumer taste and preferences
19. A special tax imposed on imported goods.
perfectly elastic
real GDP
total revenue
tariff
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
disposable personal income
trade surplus
fiscal policy
Labor
21. 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
nominal GDP
tariff
business cycle
exchange rate
22. Goods that go together - if price ? the demand for both that good and complimentary good ?.
depression
complimentary goods
Gross National Product
consumer surplus
23. Consumer income rise - demand will rise.
normal good
neutral good
unemployed
land
24. 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
rule of 70
inverse relationship
aggregate demand curve
consumer good
25. 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.
Phillips curve
national income (NI)
structural unemployment
elastic demand
26. The willingness and ability of buyers to purchase a good or service.
total revenue
business cycle
government expenditures
demand
27. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
expansionary monetary policy
national economic accounts
scarce
inelastic demand
28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
price index
consumer taste and preferences
market economy
trade deficit
29. The dollar value of production within a nation's border.
resource
Phillips curve
Gross Domestic Product
consumer good
30. 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.
simple money multiplier
inelastic
hidden unemployment
neutral good
31. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
government expenditures
opportunity cost
entrepreneurship
marginal propensity to consume (MPC)
32. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
required reserve ratio (RRR)
demand elasticity
marginal propensity to consume (MPC)
marginal revenue
33. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
consumer good
market demand curve
frictional unemployment
scarce
34. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
land
SRAS curve
scarcity
expenditure approach
35. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
oligopoly
money multiplier
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
national income (NI)
36. 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).
market supply curve
opportunity cost
monopoly
expansionary fiscal policy
37. 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 surplus
expansion
unemployment rate
money multiplier
38. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
trade surplus
inflation
direct relationship
39. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
Marginal Propensity to Save (MPS)
scarcity
rule of 70
monetary policy
40. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
unit elastic
unemployment rate
trade surplus
expansion
41. The effort of workers.
recession
Labor
rule of 70
inferior good
42. 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
law of demand
peak
exchange rate
government expenditures
43. Anything that can be used to produce something else
neutral good
marginal propensity to consume (MPC)
trough
resource
44. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
change in quantity demanded
law of demand
expansionary fiscal policy
45. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
Marginal Propensity to Save (MPS)
changes in consumer expectations
aggregate demand curve
movement along a demand curve
46. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
stagflation
import quotas
Phillips curve
A decrease in TR following an increase in price = elastic demand
47. 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.
individual choice
opportunity cost
cost-push inflation
change in quantity demanded
48. The proportion of each additional dollar of income that is saved.
business cycles
macroeconomics
Marginal Propensity to Save (MPS)
inferior good
49. The amount of a good actually sold.
nominal GDP
quantity exchanged
business cycles
frictional unemployment
50. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
consumer taste and preferences
expansionary monetary policy
susbtitute goods
land