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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 lowest point of a business cycle
price floor
inverse relationship
hidden unemployment
trough
2. 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.
elastic
hidden unemployment
resource
oligopoly
3. The effort of workers.
unemployed
nominal GDP
Labor
oligopoly
4. The addition to total revenue created by selling one additional unit of ouput.
disposable personal income
law of supply
marginal revenue
number of composition of consumers
5. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
demand curve shifts
consumer taste and preferences
consumer income rise
labor force
6. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
market demand curve
required reserve ratio (RRR)
marginal propensity to consume (MPC)
price floor
7. Rising prices - across the board.
fiscal policy
law of demand
inflation
Labor
8. Decisions by individuals about what to do and what not to do.
scarce
substitution effect
individual choice
trough
9. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
law of supply
normal good
inelastic
nominal GDP
10. 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.
cost-push inflation
stagflation
investment expenditures
fiscal policy
11. The payment that capital receives in the factor market.
interest
land
consumer income rise
consumer good
12. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
expansionary fiscal policy
law of demand
inverse relationship
13. 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.
expenditure approach
simple money multiplier
price index
depression
14. 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
economics
law of demand
nominal GDP
aggregate supply curve
15. 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
unemployed
inelastic demand
scarce
trade deficit
16. Significantly responsive to a change in price.
expenditure approach
elastic
price ceiling
unemployed
17. The price of a domestic currency in terms of a foreign currency.
exchange rate
economics
recession
demand
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
disposable personal income
price floor
real GDP
microeconomics
19. Not significantly responsive to changes in price.
business cycle
consumer income rise
cost-push inflation
inelastic
20. Goods that go together - if price ? the demand for both that good and complimentary good ?.
inelastic demand
complimentary goods
frictional unemployment
consumer surplus
21. The long-run pattern of growth and recession.
Gross National Product
entrepreneurship
changes in consumer expectations
business cycle
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.
resource
LRAS curv
elastic demand
Marginal Propensity to Save (MPS)
23. A shift of the demand curve resulting from a change in consumer taste and preferences.
inflation
peak
investment expenditures
consumer taste and preferences
24. The amount of a good actually sold.
money multiplier
opportunity cost
economic aggregates
quantity exchanged
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).
unemployment rate
expansionary fiscal policy
import quotas
law of demand
26. 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
susbtitute goods
import quotas
law of demand
hyperinflation
27. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
normal good
price ceiling
trade surplus
money multiplier
28. The deliberate control of the money supply by the Federal government.
expansion
monetary policy
opportunity cost
price index
29. 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.
frictional unemployment
demand schedule
market demand curve
complimentary goods
30. 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.
labor force
business cycle
unemployed
inelastic demand
31. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
trough
A decrease in TR following an increase in price = elastic demand
purchasing power
money multiplier
32. 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.
aggregate demand curve
business cycles
market supply curve
microeconomics
33. Anything that can be used to produce something else
elastic demand
expenditure approach
microeconomics
resource
34. The income of households after taxes have been paid
real GDP
simple money multiplier
depression
disposable personal income
35. 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
aggregate demand curve
Phillips curve
opportunity cost
36. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
price index
elastic
aggregate demand curve
expansion
37. Price control set when the market price is believed to be too low.
depreciation
national income (NI)
demand
price floor
38. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
simple money multiplier
law of supply
consumer good
39. 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).
trough
marginal propensity to consume (MPC)
expansion
market demand curve
40. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
consumer taste and preferences
fiscal policy
inflation
41. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
law of demand
neutral good
structural unemployment
consumer surplus
42. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
hyperinflation
change in quantity demanded
depreciation
simple money multiplier
43. 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.
expenditure approach
number of composition of consumers
diminishing marginal utility
aggregate demand curve
44. The cost of something in terms of what one must give up to get it.
Marginal Propensity to Save (MPS)
economic aggregates
opportunity cost
neutral good
45. 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.
inferior good
inelastic
economics
number of composition of consumers
46. Consumer income rise - demand will rise.
law of demand
demand elasticity
tariff
neutral good
47. A measure of the price level - or the average level of prices.
consumer good
stagflation
price index
trade deficit
48. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
quantity exchanged
exchange rate
cyclical unemployment
labor force
49. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
tariff
SRAS curve
Phillips curve
price ceiling
50. Long- run aggregate supply curve
monopoly
price floor
direct relationship
LRAS curv