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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 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.
business cycle
structural unemployment
inelastic demand
change in quantity demanded
2. A Latin phrase meaning 'all things constant.'
quantity exchanged
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer surplus
expansion
3. 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
oligopoly
number of composition of consumers
inflation
4. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
price floor
expenditure approach
price index
depression
5. The payment that capital receives in the factor market.
trade surplus
aggregate supply curve
rule of 70
interest
6. Long- run aggregate supply curve
LRAS curv
marginal revenue
susbtitute goods
total revenue
7. The transition point between economic recession and recovery.
disposable personal income
oligopoly
complimentary goods
trough
8. The dollar value of all the goods and services sold to house holds.
hyperinflation
disposable personal income
consumption expenditures
exchange rate
9. 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
command economy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of demand
demand
10. 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.
depression
expansionary monetary policy
hyperinflation
demand curve
11. 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
consumer surplus
aggregate demand curve
movement along a demand curve
12. 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.
Labor
demand curve shifts
stagflation
normal good
13. 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.
business cycle
economic aggregates
normal good
microeconomics
14. Fluctuations in real GDP around the trend value; also called economic fluctuations.
SRAS curve
fiscal policy
import quotas
business cycles
15. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
susbtitute goods
simple money multiplier
labor force
16. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
structural unemployment
expansionary monetary policy
hyperinflation
17. 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.
inverse relationship
unemployment rate
resource
stagflation
18. The long-run pattern of growth and recession.
market supply curve
business cycle
opportunity cost
law of demand
19. The effort of workers.
market equilibrium
command economy
Labor
price index
20. Not significantly responsive to changes in price.
inelastic
demand curve
Gross National Product
macroeconomics
21. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
inflation
demand-pull inflation
opportunity cost
22. 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).
economics
frictional unemployment
cost-push inflation
market demand curve
23. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
expansionary fiscal policy
nominal GDP
money multiplier
market equilibrium
24. Goods that go together - if price ? the demand for both that good and complimentary good ?.
Labor
law of supply
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
complimentary goods
25. Decisions by individuals about what to do and what not to do.
demand
individual choice
unemployed
trough
26. Short-run aggregate supply curve
individual choice
expenditure approach
SRAS curve
marginal propensity to consume (MPC)
27. 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?
demand elasticity
rule of 70
oligopoly
law of demand
28. 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
disposable personal income
trade surplus
demand-pull inflation
29. Real cost of an item is its opportunity cost.
oligopoly
opportunity cost
demand schedule
economic aggregates
30. 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
consumption expenditures
money multiplier
required reserve ratio (RRR)
31. The highest point of a business cycle.
demand schedule
purchasing power
peak
A decrease in TR following an increase in price = elastic demand
32. An industry structure in which there is only one seller for a product.
number of composition of consumers
monopoly
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumption expenditures
33. 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).
national income (NI)
depreciation
cost-push inflation
demand-pull inflation
34. The proportion of each additional dollar of income that will go toward consumption expenditures.
structural unemployment
marginal propensity to consume (MPC)
rule of 70
national income (NI)
35. 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.
interest
demand schedule
consumer surplus
opportunity cost
36. 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.
complimentary goods
money multiplier
simple money multiplier
Phillips curve
37. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
movement along a demand curve
susbtitute goods
inflation
unemployed
38. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
complimentary goods
trade deficit
Phillips curve
elastic
39. Rising prices - across the board.
neutral good
opportunity cost
inflation
cyclical unemployment
40. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
market economy
Gross Domestic Product
consumer surplus
A decrease in TR following an increase in price = elastic demand
41. The dollar value of production within a nation's border.
Gross Domestic Product
tariff
depreciation
price index
42. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
economic aggregates
scarcity
normal good
price index
43. 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
national economic accounts
resource
inverse relationship
44. Price control set when the market price is believed to be too low.
Gross National Product
expansionary monetary policy
hyperinflation
price floor
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.
demand-pull inflation
inferior good
trough
resource
46. 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.
market demand curve
complimentary goods
price index
demand-pull inflation
47. 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
entrepreneurship
depreciation
purchasing power
expansionary monetary policy
48. 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).
marginal propensity to consume (MPC)
unemployment rate
tariff
complimentary goods
49. The amount of a good actually sold.
quantity exchanged
expansionary monetary policy
elastic
government expenditures
50. 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.
market supply curve
demand
hidden unemployment
expansionary fiscal policy