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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 country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
interest
consumer taste and preferences
trade surplus
market economy
2. A special tax imposed on imported goods.
command economy
tariff
unit elastic
national income (NI)
3. 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).
consumer taste and preferences
Gross National Product
SRAS curve
cost-push inflation
4. 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
economic aggregates
unemployed
perfectly elastic
Phillips curve
5. 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.
market economy
aggregate demand curve
demand
purchasing power
6. 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.
trough
command economy
stagflation
national income (NI)
7. The amount of a good actually sold.
quantity exchanged
rule of 70
LRAS curv
expansionary monetary policy
8. Not significantly responsive to changes in price.
hyperinflation
market supply curve
inelastic
land
9. Restrictions on the quantity of a good that can be imported
import quotas
elastic demand
price floor
A decrease in TR following an increase in price = elastic demand
10. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
demand elasticity
substitution effect
inflation
marginal propensity to consume (MPC)
11. 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
economics
expansionary monetary policy
demand-pull inflation
trough
12. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
fiscal policy
price floor
market economy
command economy
13. 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
demand curve
real GDP
neutral good
number of composition of consumers
14. 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
expenditure approach
number of composition of consumers
expansionary fiscal policy
15. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
business cycle
direct relationship
simple money multiplier
macroeconomics
16. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
inflation
hyperinflation
consumer surplus
simple money multiplier
17. 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
expansion
market economy
18. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
Gross National Product
LRAS curv
microeconomics
19. The willingness and ability of buyers to purchase a good or service.
demand
cost-push inflation
A decrease in TR following an increase in price = elastic demand
real GDP
20. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
government expenditures
national economic accounts
market demand curve
price index
21. 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.
inelastic demand
law of supply
market economy
total revenue
22. Anything that shows the economy as a whole.
cyclical unemployment
economic aggregates
price index
unemployment rate
23. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
monetary policy
consumer income rise
unemployment rate
business cycles
24. 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.
purchasing power
oligopoly
peak
unemployed
25. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
simple money multiplier
aggregate supply curve
inflation
26. 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
national economic accounts
unit elastic
oligopoly
27. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
law of demand
national income (NI)
hidden unemployment
market equilibrium
28. Fluctuations in real GDP around the trend value; also called economic fluctuations.
demand curve shifts
business cycles
business cycle
opportunity cost
29. The transition point between economic recession and recovery.
monopoly
substitution effect
trough
resource
30. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
trough
LRAS curv
number of composition of consumers
31. The effort of workers.
consumption expenditures
Phillips curve
investment expenditures
Labor
32. 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).
inverse relationship
market demand curve
interest
elastic demand
33. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
inverse relationship
A decrease in TR following an increase in price = elastic demand
macroeconomics
depreciation
34. 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.
diminishing marginal utility
susbtitute goods
trough
demand schedule
35. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
frictional unemployment
marginal propensity to consume (MPC)
movement along a demand curve
land
36. Price control set when the market price is believed to be too high.
inelastic demand
business cycles
labor force
price ceiling
37. Expenditure by businesses on plant and equipment and the change in business invention.
market demand curve
command economy
peak
investment expenditures
38. 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).
unemployment rate
government expenditures
aggregate supply curve
total revenue
39. The dollar value of goods and services sold to governments.
monopoly
government expenditures
scarce
change in quantity demanded
40. An increase in the price level
inflation
opportunity cost
fiscal policy
cyclical unemployment
41. Rising prices - across the board.
consumer income rise
movement along a demand curve
inflation
market equilibrium
42. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
number of composition of consumers
required reserve ratio (RRR)
trough
recession
43. The dollar value of production within a nation's border.
aggregate supply curve
Gross Domestic Product
inverse relationship
price floor
44. The payment that capital receives in the factor market.
interest
required reserve ratio (RRR)
command economy
price ceiling
45. 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.
demand schedule
resource
change in quantity demanded
nominal GDP
46. 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.
depression
frictional unemployment
disposable personal income
cost-push inflation
47. 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
cyclical unemployment
trough
individual choice
nominal GDP
48. Price control set when the market price is believed to be too low.
demand elasticity
price floor
inflation
diminishing marginal utility
49. An industry structure in which there is only one seller for a product.
monopoly
market demand curve
simple money multiplier
investment expenditures
50. Long- run aggregate supply curve
tariff
money multiplier
LRAS curv
neutral good