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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. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
cyclical unemployment
unit elastic
consumer taste and preferences
land
2. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
quantity exchanged
recession
changes in consumer expectations
labor force
3. The amount of a good actually sold.
quantity exchanged
law of demand
inflation
cyclical unemployment
4. A shift of the demand curve resulting from a change in consumer taste and preferences.
exchange rate
depression
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer taste and preferences
5. A measure of the price level - or the average level of prices.
law of supply
price index
consumer income rise
microeconomics
6. 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?
neutral good
direct relationship
depression
demand elasticity
7. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
inelastic demand
macroeconomics
Marginal Propensity to Save (MPS)
market demand curve
8. 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.
stagflation
required reserve ratio (RRR)
inflation
LRAS curv
9. The dollar value of production within a nation's border.
economics
Gross Domestic Product
consumer surplus
scarcity
10. The lowest point of a business cycle
number of composition of consumers
substitution effect
trough
simple money multiplier
11. The sum of all the quantities of a good supplies by all producers at each price.
entrepreneurship
import quotas
tariff
market supply curve
12. 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.
oligopoly
cyclical unemployment
SRAS curve
nominal GDP
13. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
business cycles
expansionary fiscal policy
individual choice
entrepreneurship
14. Not significantly responsive to changes in price.
entrepreneurship
consumer good
inelastic
elastic demand
15. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
demand curve
opportunity cost
cost-push inflation
16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
expansionary fiscal policy
demand elasticity
Gross Domestic Product
17. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
economic aggregates
fiscal policy
diminishing marginal utility
18. Long- run aggregate supply curve
Marginal Propensity to Save (MPS)
LRAS curv
recession
marginal revenue
19. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
cyclical unemployment
law of supply
inverse relationship
inelastic demand
20. When the percent of change in the quantity demanded equals the percent of change in price.
A decrease in TR following an increase in price = elastic demand
unit elastic
susbtitute goods
price floor
21. 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
scarcity
consumer income rise
perfectly elastic
22. 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
demand-pull inflation
movement along a demand curve
quantity exchanged
23. A curve defining the relationship between real production and price level.
aggregate supply curve
depreciation
changes in consumer expectations
investment expenditures
24. The proportion of each additional dollar of income that is saved.
law of supply
expansion
Marginal Propensity to Save (MPS)
monopoly
25. Goods that go together - if price ? the demand for both that good and complimentary good ?.
resource
complimentary goods
individual choice
substitution effect
26. The dollar value of production by a country's citizens.
expansionary fiscal policy
neutral good
total revenue
Gross National Product
27. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
opportunity cost
normal good
28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
consumer good
demand-pull inflation
inflation
market economy
29. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
inelastic
change in quantity demanded
inverse relationship
national economic accounts
30. 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.
recession
demand-pull inflation
market equilibrium
LRAS curv
31. 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).
expansionary fiscal policy
consumption expenditures
Phillips curve
movement along a demand curve
32. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
unemployment rate
marginal propensity to consume (MPC)
marginal revenue
33. 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
consumer income rise
demand
nominal GDP
economics
34. 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.
Gross National Product
structural unemployment
cost-push inflation
demand-pull inflation
35. 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.
consumption expenditures
change in quantity demanded
microeconomics
inflation
36. Fluctuations in real GDP around the trend value; also called economic fluctuations.
required reserve ratio (RRR)
business cycles
command economy
Phillips curve
37. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
required reserve ratio (RRR)
total revenue
investment expenditures
inverse relationship
38. Real cost of an item is its opportunity cost.
consumer surplus
opportunity cost
demand curve
depreciation
39. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
resource
SRAS curve
Phillips curve
unit elastic
40. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
inferior good
money multiplier
market demand curve
business cycles
41. The price of a domestic currency in terms of a foreign currency.
national economic accounts
exchange rate
microeconomics
hidden unemployment
42. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
demand-pull inflation
rule of 70
law of supply
43. 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
trough
depreciation
inflation
44. The highest point of a business cycle.
tariff
peak
individual choice
scarce
45. The dollar value of all the goods and services sold to house holds.
consumption expenditures
depression
demand-pull inflation
law of supply
46. Restrictions on the quantity of a good that can be imported
susbtitute goods
unit elastic
import quotas
labor force
47. The proportion of each additional dollar of income that will go toward consumption expenditures.
economic aggregates
marginal propensity to consume (MPC)
entrepreneurship
aggregate demand curve
48. 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.
Phillips curve
exchange rate
labor force
depreciation
49. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
monetary policy
entrepreneurship
cyclical unemployment
substitution effect
50. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
national economic accounts
investment expenditures
national income (NI)
required reserve ratio (RRR)