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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. 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
marginal propensity to consume (MPC)
inflation
Gross Domestic Product
real GDP
2. 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.
rule of 70
law of supply
depression
exchange rate
3. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
rule of 70
price floor
consumer good
4. A relationship between two factors in which the factors move in the same direction.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
direct relationship
national income (NI)
economic aggregates
5. The lowest point of a business cycle
real GDP
trough
depreciation
Phillips curve
6. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
opportunity cost
complimentary goods
elastic
total revenue
7. Anything that can be used to produce something else
unemployment rate
inflation
resource
market economy
8. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
cost-push inflation
Phillips curve
demand curve
9. (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
resource
frictional unemployment
national income (NI)
10. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
number of composition of consumers
Phillips curve
rule of 70
11. The dollar value of goods and services sold to governments.
purchasing power
government expenditures
direct relationship
A decrease in TR following an increase in price = elastic demand
12. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
consumer surplus
depression
stagflation
13. Rising prices - across the board.
cyclical unemployment
purchasing power
inflation
inverse relationship
14. Anything that shows the economy as a whole.
quantity exchanged
unemployed
SRAS curve
economic aggregates
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.
law of supply
inflation
hidden unemployment
complimentary goods
16. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
market equilibrium
law of demand
price index
opportunity cost
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.
susbtitute goods
scarcity
aggregate demand curve
inelastic
18. An increase in the price level
consumer taste and preferences
inflation
direct relationship
demand curve shifts
19. The payment that capital receives in the factor market.
depression
required reserve ratio (RRR)
interest
marginal revenue
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
entrepreneurship
expansionary monetary policy
trade surplus
demand-pull inflation
21. Consumer income rise - demand will rise.
labor force
Gross National Product
neutral good
consumer surplus
22. The dollar value of production by a country's citizens.
Gross National Product
unemployed
required reserve ratio (RRR)
change in quantity demanded
23. The highest point of a business cycle.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
peak
demand
expansion
24. An industry structure in which there is only one seller for a product.
monopoly
quantity exchanged
market demand curve
demand
25. Restrictions on the quantity of a good that can be imported
cost-push inflation
import quotas
simple money multiplier
national income (NI)
26. Price control set when the market price is believed to be too high.
command economy
law of demand
price ceiling
aggregate demand curve
27. The sum of all the quantities of a good supplies by all producers at each price.
structural unemployment
market supply curve
Labor
total revenue
28. 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
price ceiling
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
tariff
29. The amount of money available to consumers to purchase goods and services.
market economy
price index
purchasing power
normal good
30. Not significantly responsive to changes in price.
unemployed
inelastic
command economy
Marginal Propensity to Save (MPS)
31. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).
cost-push inflation
national economic accounts
inferior good
monopoly
32. The transition point between economic recession and recovery.
structural unemployment
elastic
trough
demand elasticity
33. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
scarce
business cycles
market equilibrium
34. 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.
resource
change in quantity demanded
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer income rise
35. 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).
neutral good
interest
command economy
market demand curve
36. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
stagflation
demand elasticity
trough
37. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
hidden unemployment
quantity exchanged
normal good
law of demand
38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
command economy
entrepreneurship
rule of 70
microeconomics
39. The dollar value of production within a nation's border.
cyclical unemployment
market supply curve
A decrease in TR following an increase in price = elastic demand
Gross Domestic Product
40. The income earned by households and profits earned by firms after subtracting.
SRAS curve
inferior good
national income (NI)
opportunity cost
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.
labor force
number of composition of consumers
consumption expenditures
Phillips curve
42. 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.
aggregate supply curve
entrepreneurship
perfectly elastic
inverse relationship
43. 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).
movement along a demand curve
complimentary goods
unemployment rate
aggregate demand curve
44. 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
hidden unemployment
purchasing power
law of demand
hyperinflation
45. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
inflation
changes in consumer expectations
substitution effect
monopoly
46. Decisions by individuals about what to do and what not to do.
unemployment rate
inferior good
inverse relationship
individual choice
47. A curve defining the relationship between real production and price level.
substitution effect
Marginal Propensity to Save (MPS)
aggregate supply curve
scarce
48. Price control set when the market price is believed to be too low.
aggregate demand curve
business cycles
price floor
demand-pull inflation
49. The long-run pattern of growth and recession.
demand schedule
inflation
business cycle
Phillips curve
50. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
opportunity cost
consumer income rise
susbtitute goods
expenditure approach