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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 proportion of each additional dollar of income that will go toward consumption expenditures.
total revenue
Marginal Propensity to Save (MPS)
aggregate supply curve
marginal propensity to consume (MPC)
2. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer good
consumer income rise
cyclical unemployment
Phillips curve
3. The highest point of a business cycle.
depression
scarcity
peak
inelastic
4. The dollar value of production within a nation's border.
normal good
changes in consumer expectations
Gross Domestic Product
cost-push inflation
5. Not significantly responsive to changes in price.
inelastic
demand elasticity
expansionary monetary policy
diminishing marginal utility
6. A special tax imposed on imported goods.
unemployed
real GDP
trade deficit
tariff
7. Price control set when the market price is believed to be too low.
aggregate demand curve
price floor
cyclical unemployment
macroeconomics
8. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
consumer surplus
susbtitute goods
consumption expenditures
normal good
9. A shift of the demand curve resulting from a change in consumer taste and preferences.
price ceiling
consumer taste and preferences
stagflation
total revenue
10. Period in which a recession becomes prolonged and deep - involving high unemployment.
tariff
quantity exchanged
A decrease in TR following an increase in price = elastic demand
depression
11. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
disposable personal income
market supply curve
cyclical unemployment
required reserve ratio (RRR)
12. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
trough
market equilibrium
land
macroeconomics
13. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
marginal revenue
total revenue
normal good
cost-push inflation
14. Decisions by individuals about what to do and what not to do.
individual choice
elastic
demand curve shifts
macroeconomics
15. 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.
inflation
Marginal Propensity to Save (MPS)
inelastic
perfectly elastic
16. 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.
consumer taste and preferences
expansion
demand curve shifts
scarce
17. Government officials make decisions about economy.
structural unemployment
command economy
demand-pull inflation
marginal revenue
18. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
frictional unemployment
scarce
scarcity
normal good
19. 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
disposable personal income
20. The deliberate control of the money supply by the Federal government.
law of demand
monetary policy
exchange rate
market supply curve
21. 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
unemployed
marginal revenue
law of demand
structural unemployment
22. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
labor force
substitution effect
disposable personal income
macroeconomics
23. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
monetary policy
inverse relationship
opportunity cost
national income (NI)
24. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
simple money multiplier
scarce
demand-pull inflation
25. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
structural unemployment
inelastic
required reserve ratio (RRR)
quantity exchanged
26. The willingness and ability of buyers to purchase a good or service.
consumer surplus
inflation
susbtitute goods
demand
27. The addition to total revenue created by selling one additional unit of ouput.
elastic
rule of 70
marginal revenue
oligopoly
28. 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?
cyclical unemployment
nominal GDP
demand elasticity
elastic demand
29. The income earned by households and profits earned by firms after subtracting.
national income (NI)
marginal revenue
monetary policy
hidden unemployment
30. The payment that capital receives in the factor market.
hyperinflation
interest
stagflation
market demand curve
31. The amount of money available to consumers to purchase goods and services.
economics
purchasing power
economic aggregates
opportunity cost
32. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
government expenditures
consumption expenditures
land
demand curve
33. The transition point between economic recession and recovery.
trough
resource
neutral good
susbtitute goods
34. A Latin phrase meaning 'all things constant.'
expansion
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
resource
demand-pull inflation
35. The amount of a good actually sold.
quantity exchanged
complimentary goods
unemployed
unit elastic
36. 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
economic aggregates
Gross National Product
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
37. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
inelastic
trough
market economy
Phillips curve
38. Significantly responsive to a change in price.
Phillips curve
price ceiling
elastic
expenditure approach
39. (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.
number of composition of consumers
import quotas
purchasing power
diminishing marginal utility
40. Price control set when the market price is believed to be too high.
consumer taste and preferences
price ceiling
Gross National Product
trade deficit
41. 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).
market demand curve
trade deficit
hyperinflation
unemployment rate
42. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
depreciation
complimentary goods
national economic accounts
monopoly
43. 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.
demand schedule
elastic demand
government expenditures
Labor
44. 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
expansion
import quotas
real GDP
business cycle
45. Expenditure by businesses on plant and equipment and the change in business invention.
structural unemployment
Labor
total revenue
investment expenditures
46. The income of households after taxes have been paid
government expenditures
disposable personal income
market equilibrium
opportunity cost
47. The price of a domestic currency in terms of a foreign currency.
diminishing marginal utility
neutral good
exchange rate
demand elasticity
48. 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.
complimentary goods
hyperinflation
purchasing power
inverse relationship
49. 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).
inferior good
unemployment rate
consumer taste and preferences
market demand curve
50. The cost of something in terms of what one must give up to get it.
elastic demand
real GDP
opportunity cost
aggregate supply curve