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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. 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
national income (NI)
inelastic
expansionary monetary policy
expansionary fiscal policy
2. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
land
inverse relationship
inelastic
3. 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
trade surplus
nominal GDP
demand-pull inflation
labor force
4. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
number of composition of consumers
Gross National Product
demand curve
Marginal Propensity to Save (MPS)
5. The transition point between economic recession and recovery.
market economy
A decrease in TR following an increase in price = elastic demand
peak
trough
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.
national income (NI)
real GDP
stagflation
law of demand
7. 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.
oligopoly
market supply curve
money multiplier
demand-pull inflation
8. Significantly responsive to a change in price.
elastic
substitution effect
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
9. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
microeconomics
demand curve
unit elastic
scarce
10. 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.
demand schedule
peak
consumption expenditures
price index
11. 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
consumption expenditures
money multiplier
aggregate demand curve
unemployed
12. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
change in quantity demanded
inflation
price floor
13. 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.
normal good
market demand curve
A decrease in TR following an increase in price = elastic demand
frictional unemployment
14. The dollar value of production by a country's citizens.
depression
Gross National Product
investment expenditures
total revenue
15. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.
perfectly elastic
elastic demand
national economic accounts
movement along a demand curve
16. A relationship between two factors in which the factors move in the same direction.
normal good
expansionary monetary policy
monopoly
direct relationship
17. An increase in the price level
required reserve ratio (RRR)
inflation
market equilibrium
inferior good
18. The proportion of each additional dollar of income that will go toward consumption expenditures.
land
fiscal policy
marginal propensity to consume (MPC)
trough
19. Short-run aggregate supply curve
SRAS curve
exchange rate
A decrease in TR following an increase in price = elastic demand
complimentary goods
20. The long-run pattern of growth and recession.
hyperinflation
required reserve ratio (RRR)
business cycle
aggregate demand curve
21. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
purchasing power
Labor
hidden unemployment
22. 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.
Phillips curve
perfectly elastic
land
substitution effect
23. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
unit elastic
elastic
rule of 70
scarcity
24. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
national income (NI)
scarce
total revenue
marginal revenue
25. A special tax imposed on imported goods.
tariff
cyclical unemployment
inflation
expansion
26. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
market demand curve
marginal propensity to consume (MPC)
frictional unemployment
27. When the percent of change in the quantity demanded equals the percent of change in price.
command economy
unit elastic
entrepreneurship
structural unemployment
28. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
A decrease in TR following an increase in price = elastic demand
complimentary goods
required reserve ratio (RRR)
real GDP
29. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
interest
cost-push inflation
total revenue
market equilibrium
30. The willingness and ability of buyers to purchase a good or service.
complimentary goods
market supply curve
land
demand
31. Anything that can be used to produce something else
opportunity cost
nominal GDP
resource
hyperinflation
32. The dollar value of all the goods and services sold to house holds.
resource
unit elastic
consumption expenditures
land
33. A Latin phrase meaning 'all things constant.'
law of demand
business cycles
depression
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
34. 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.
scarce
inelastic
inelastic demand
tariff
35. Real cost of an item is its opportunity cost.
opportunity cost
microeconomics
Marginal Propensity to Save (MPS)
consumption expenditures
36. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
labor force
law of demand
price floor
SRAS curve
37. The amount of money available to consumers to purchase goods and services.
individual choice
depreciation
resource
purchasing power
38. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
consumer surplus
cyclical unemployment
land
quantity exchanged
39. 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.
cyclical unemployment
microeconomics
fiscal policy
monopoly
40. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
stagflation
disposable personal income
entrepreneurship
inflation
41. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
simple money multiplier
economics
movement along a demand curve
market economy
42. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
market economy
trade deficit
total revenue
macroeconomics
43. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
money multiplier
cost-push inflation
movement along a demand curve
inflation
44. A shift of the demand curve resulting from a change in consumer taste and preferences.
elastic demand
inflation
consumer taste and preferences
structural unemployment
45. 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.
changes in consumer expectations
oligopoly
hyperinflation
economics
46. A measure of the price level - or the average level of prices.
demand elasticity
expenditure approach
expansionary fiscal policy
price index
47. 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?
structural unemployment
demand-pull inflation
demand elasticity
demand curve shifts
48. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
movement along a demand curve
land
nominal GDP
49. Period in which a recession becomes prolonged and deep - involving high unemployment.
Gross Domestic Product
depression
entrepreneurship
economic aggregates
50. 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
inflation
real GDP
national income (NI)
demand