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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. The income of households after taxes have been paid
import quotas
substitution effect
disposable personal income
nominal GDP
2. 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.
scarcity
expansionary fiscal policy
Marginal Propensity to Save (MPS)
elastic demand
3. Significantly responsive to a change in price.
unit elastic
elastic
expansionary fiscal policy
marginal propensity to consume (MPC)
4. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
unemployed
cost-push inflation
frictional unemployment
5. A measure of the price level - or the average level of prices.
labor force
price index
market supply curve
tariff
6. The lowest point of a business cycle
trade deficit
A decrease in TR following an increase in price = elastic demand
trough
law of supply
7. Anything that shows the economy as a whole.
economic aggregates
price index
inflation
Labor
8. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
Gross National Product
inverse relationship
government expenditures
9. The amount of money available to consumers to purchase goods and services.
command economy
oligopoly
inflation
purchasing power
10. Price control set when the market price is believed to be too low.
monopoly
price floor
normal good
required reserve ratio (RRR)
11. The dollar value of production by a country's citizens.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
money multiplier
cyclical unemployment
Gross National Product
12. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
import quotas
Gross Domestic Product
law of supply
13. Rising prices - across the board.
inflation
land
monetary policy
total revenue
14. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
oligopoly
A decrease in TR following an increase in price = elastic demand
fiscal policy
consumer surplus
15. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
resource
number of composition of consumers
aggregate demand curve
16. 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.
monetary policy
perfectly elastic
microeconomics
trough
17. 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.
hidden unemployment
trade deficit
depreciation
expenditure approach
18. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc
rule of 70
simple money multiplier
cost-push inflation
exchange rate
19. The study of scarcity and choice.
economics
frictional unemployment
depression
complimentary goods
20. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
depression
cost-push inflation
business cycle
entrepreneurship
21. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
economics
government expenditures
labor force
diminishing marginal utility
22. 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.
peak
fiscal policy
frictional unemployment
quantity exchanged
23. 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
changes in consumer expectations
unemployed
expansionary fiscal policy
inverse relationship
24. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
command economy
macroeconomics
land
cyclical unemployment
25. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
A decrease in TR following an increase in price = elastic demand
SRAS curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
26. Restrictions on the quantity of a good that can be imported
government expenditures
market economy
import quotas
macroeconomics
27. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
monopoly
opportunity cost
movement along a demand curve
scarce
28. 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
money multiplier
demand
business cycles
29. 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.
aggregate supply curve
labor force
oligopoly
hyperinflation
30. When the percent of change in the quantity demanded equals the percent of change in price.
changes in consumer expectations
land
unit elastic
expansionary fiscal policy
31. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
import quotas
depreciation
trough
depression
32. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
trade deficit
inverse relationship
aggregate supply curve
expansion
33. Long- run aggregate supply curve
normal good
cyclical unemployment
cost-push inflation
LRAS curv
34. Fluctuations in real GDP around the trend value; also called economic fluctuations.
recession
total revenue
business cycles
monetary policy
35. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
inflation
Phillips curve
direct relationship
36. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
demand elasticity
trade surplus
unemployed
consumer income rise
37. The long-run pattern of growth and recession.
interest
investment expenditures
law of demand
business cycle
38. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
unemployed
demand curve
inferior good
peak
39. A bad depressingly prolonged recession in economic activity.
depression
trade surplus
Phillips curve
price floor
40. 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.
change in quantity demanded
market demand curve
demand-pull inflation
market economy
41. The willingness and ability of buyers to purchase a good or service.
demand
trade surplus
Phillips curve
Labor
42. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
demand
demand-pull inflation
market equilibrium
LRAS curv
43. 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.
inelastic
consumption expenditures
aggregate demand curve
market economy
44. The sum of all the quantities of a good supplies by all producers at each price.
changes in consumer expectations
stagflation
aggregate supply curve
market supply curve
45. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.
national income (NI)
number of composition of consumers
government expenditures
structural unemployment
46. Consumer income rise - demand will rise.
land
business cycles
neutral good
aggregate supply curve
47. Decisions by individuals about what to do and what not to do.
resource
law of supply
individual choice
expenditure approach
48. An increase or decrease in consumer income will cause a shift in the Demand Curve.
macroeconomics
entrepreneurship
expenditure approach
consumer good
49. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
opportunity cost
economic aggregates
depression
national economic accounts
50. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
susbtitute goods
inflation
normal good
simple money multiplier