SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 measure of the price level - or the average level of prices.
demand elasticity
neutral good
price index
opportunity cost
2. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
inelastic demand
money multiplier
rule of 70
movement along a demand curve
3. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
consumer surplus
trade surplus
substitution effect
trade deficit
4. A relationship between two factors in which the factors move in the same direction.
Labor
direct relationship
hidden unemployment
normal good
5. Goods that go together - if price ? the demand for both that good and complimentary good ?.
exchange rate
elastic demand
consumption expenditures
complimentary goods
6. A curve defining the relationship between real production and price level.
scarce
structural unemployment
trade surplus
aggregate supply curve
7. The proportion of each additional dollar of income that is saved.
price index
trade surplus
Marginal Propensity to Save (MPS)
simple money multiplier
8. Restrictions on the quantity of a good that can be imported
import quotas
market equilibrium
cost-push inflation
susbtitute goods
9. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
expansionary monetary policy
frictional unemployment
business cycles
consumer surplus
10. 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
hyperinflation
macroeconomics
investment expenditures
11. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
normal good
market supply curve
microeconomics
12. 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.
land
unemployment rate
demand schedule
Phillips curve
13. The study of scarcity and choice.
price floor
economics
unemployed
elastic
14. The deliberate control of the money supply by the Federal government.
monetary policy
law of supply
inelastic
trade surplus
15. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
inferior good
government expenditures
scarce
tariff
16. 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.
command economy
hyperinflation
depression
change in quantity demanded
17. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
depreciation
susbtitute goods
demand schedule
money multiplier
18. The income earned by households and profits earned by firms after subtracting.
national income (NI)
elastic
demand curve
opportunity cost
19. Not significantly responsive to changes in price.
economic aggregates
national economic accounts
monetary policy
inelastic
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
land
diminishing marginal utility
simple money multiplier
cyclical unemployment
21. 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.
nominal GDP
oligopoly
interest
business cycles
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).
demand
market demand curve
number of composition of consumers
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
23. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
recession
market equilibrium
susbtitute goods
consumer good
24. The willingness and ability of buyers to purchase a good or service.
market supply curve
direct relationship
demand
Marginal Propensity to Save (MPS)
25. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
consumer good
required reserve ratio (RRR)
trade surplus
entrepreneurship
26. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
quantity exchanged
market economy
demand curve
marginal propensity to consume (MPC)
27. 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.
land
monopoly
stagflation
expenditure approach
28. Significantly responsive to a change in price.
elastic
labor force
market economy
SRAS curve
29. Consumer income rise - demand will rise.
consumption expenditures
neutral good
consumer taste and preferences
oligopoly
30. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
inelastic
marginal propensity to consume (MPC)
inferior good
31. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
expenditure approach
cyclical unemployment
nominal GDP
32. Price control set when the market price is believed to be too low.
price floor
business cycle
Marginal Propensity to Save (MPS)
import quotas
33. Short-run aggregate supply curve
marginal propensity to consume (MPC)
consumption expenditures
SRAS curve
economics
34. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
import quotas
demand curve shifts
consumption expenditures
35. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
elastic demand
inelastic
purchasing power
36. 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.
economics
microeconomics
inflation
marginal revenue
37. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
macroeconomics
substitution effect
monopoly
normal good
38. The highest point of a business cycle.
business cycles
government expenditures
peak
depression
39. 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.
hyperinflation
fiscal policy
inelastic demand
inelastic
40. Fluctuations in real GDP around the trend value; also called economic fluctuations.
hidden unemployment
scarcity
market demand curve
business cycles
41. The long-run pattern of growth and recession.
complimentary goods
business cycle
demand-pull inflation
price ceiling
42. The income of households after taxes have been paid
substitution effect
disposable personal income
scarce
neutral good
43. An increase or decrease in consumer income will cause a shift in the Demand Curve.
opportunity cost
complimentary goods
consumer good
Marginal Propensity to Save (MPS)
44. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
substitution effect
fiscal policy
rule of 70
trough
45. 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
SRAS curve
command economy
disposable personal income
46. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
law of demand
demand
land
diminishing marginal utility
47. The dollar value of production by a country's citizens.
Gross National Product
elastic demand
monopoly
economic aggregates
48. The lowest point of a business cycle
cost-push inflation
scarcity
trough
opportunity cost
49. The proportion of each additional dollar of income that will go toward consumption expenditures.
unemployed
expansion
money multiplier
marginal propensity to consume (MPC)
50. Long- run aggregate supply curve
labor force
LRAS curv
national income (NI)
trade surplus