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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. 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
rule of 70
exchange rate
consumer taste and preferences
2. 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.
inelastic
elastic
hidden unemployment
monopoly
3. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
expenditure approach
complimentary goods
Marginal Propensity to Save (MPS)
4. 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.
demand curve shifts
law of supply
demand schedule
investment expenditures
5. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
inverse relationship
cyclical unemployment
money multiplier
simple money multiplier
6. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
macroeconomics
unit elastic
changes in consumer expectations
aggregate supply curve
7. 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.
macroeconomics
law of supply
elastic demand
depression
8. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
opportunity cost
movement along a demand curve
fiscal policy
9. Restrictions on the quantity of a good that can be imported
entrepreneurship
demand-pull inflation
import quotas
hyperinflation
10. Not significantly responsive to changes in price.
recession
marginal propensity to consume (MPC)
consumer income rise
inelastic
11. The addition to total revenue created by selling one additional unit of ouput.
demand curve
total revenue
cost-push inflation
marginal revenue
12. The willingness and ability of buyers to purchase a good or service.
demand
purchasing power
susbtitute goods
market supply curve
13. A shift of the demand curve resulting from a change in consumer taste and preferences.
scarcity
aggregate demand curve
consumer taste and preferences
individual choice
14. Fluctuations in real GDP around the trend value; also called economic fluctuations.
expenditure approach
business cycles
unemployment rate
expansion
15. The long-run pattern of growth and recession.
SRAS curve
marginal propensity to consume (MPC)
expansionary monetary policy
business cycle
16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
frictional unemployment
aggregate supply curve
susbtitute goods
total revenue
17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
consumer surplus
movement along a demand curve
expenditure approach
investment expenditures
18. 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
recession
law of demand
economic aggregates
nominal GDP
19. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
structural unemployment
A decrease in TR following an increase in price = elastic demand
demand
SRAS curve
20. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
depreciation
entrepreneurship
demand schedule
Labor
21. An industry structure in which there is only one seller for a product.
disposable personal income
national income (NI)
monopoly
national economic accounts
22. 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
peak
tariff
inflation
23. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
inelastic
unemployed
demand schedule
required reserve ratio (RRR)
24. Goods that go together - if price ? the demand for both that good and complimentary good ?.
depression
complimentary goods
expansion
disposable personal income
25. 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.
consumption expenditures
inferior good
investment expenditures
inflation
26. The highest point of a business cycle.
inflation
peak
LRAS curv
command economy
27. 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).
macroeconomics
market demand curve
total revenue
national income (NI)
28. The amount of money available to consumers to purchase goods and services.
economics
economic aggregates
purchasing power
tariff
29. The cost of something in terms of what one must give up to get it.
Gross Domestic Product
opportunity cost
direct relationship
law of demand
30. Long- run aggregate supply curve
LRAS curv
aggregate demand curve
unemployed
simple money multiplier
31. 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
inflation
total revenue
quantity exchanged
32. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
substitution effect
marginal propensity to consume (MPC)
government expenditures
33. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
demand curve
A decrease in TR following an increase in price = elastic demand
demand schedule
34. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
expansionary monetary policy
Labor
import quotas
35. The lowest point of a business cycle
market equilibrium
trough
hyperinflation
unemployment rate
36. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
demand schedule
macroeconomics
land
expenditure approach
37. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
market demand curve
SRAS curve
disposable personal income
depreciation
38. 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.
government expenditures
oligopoly
marginal revenue
real GDP
39. A curve defining the relationship between real production and price level.
command economy
cost-push inflation
aggregate supply curve
direct relationship
40. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
oligopoly
change in quantity demanded
scarcity
trade surplus
41. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
trough
consumer income rise
changes in consumer expectations
monetary policy
42. 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.
microeconomics
real GDP
total revenue
market equilibrium
43. A special tax imposed on imported goods.
import quotas
tariff
demand
hyperinflation
44. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
scarce
national economic accounts
neutral good
inflation
45. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
elastic demand
consumer good
SRAS curve
expansion
46. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
expansion
business cycle
recession
law of demand
47. The price of a domestic currency in terms of a foreign currency.
trade deficit
law of supply
demand
exchange rate
48. The payment that capital receives in the factor market.
unemployment rate
inflation
expansionary fiscal policy
interest
49. 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.
perfectly elastic
demand-pull inflation
land
market equilibrium
50. The deliberate control of the money supply by the Federal government.
monetary policy
demand-pull inflation
exchange rate
unit elastic