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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. 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.
normal good
demand-pull inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
real GDP
2. The transition point between economic recession and recovery.
command economy
total revenue
quantity exchanged
trough
3. The amount of money available to consumers to purchase goods and services.
trade deficit
purchasing power
market equilibrium
quantity exchanged
4. (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.
hyperinflation
direct relationship
number of composition of consumers
rule of 70
5. 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
command economy
Labor
change in quantity demanded
expansionary monetary policy
6. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
price index
changes in consumer expectations
demand curve
law of demand
7. The amount of a good actually sold.
quantity exchanged
price ceiling
substitution effect
depreciation
8. An increase or decrease in consumer income will cause a shift in the Demand Curve.
market demand curve
consumer good
nominal GDP
price floor
9. 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
unemployed
nominal GDP
elastic
marginal propensity to consume (MPC)
10. Significantly responsive to a change in price.
expansion
elastic
quantity exchanged
depression
11. 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
opportunity cost
labor force
microeconomics
real GDP
12. Anything that can be used to produce something else
inflation
opportunity cost
money multiplier
resource
13. 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
elastic demand
national income (NI)
economics
nominal GDP
14. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
SRAS curve
opportunity cost
susbtitute goods
money multiplier
15. 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.
labor force
inelastic demand
oligopoly
rule of 70
16. The dollar value of goods and services sold to governments.
expansionary monetary policy
LRAS curv
structural unemployment
government expenditures
17. The income of households after taxes have been paid
tariff
recession
inverse relationship
disposable personal income
18. 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.
scarce
changes in consumer expectations
structural unemployment
required reserve ratio (RRR)
19. Goods that go together - if price ? the demand for both that good and complimentary good ?.
market supply curve
inverse relationship
complimentary goods
investment expenditures
20. The effort of workers.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
total revenue
investment expenditures
Labor
21. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
market supply curve
monopoly
depreciation
national economic accounts
22. 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.
perfectly elastic
monopoly
microeconomics
interest
23. The sum of all the quantities of a good supplies by all producers at each price.
trade surplus
opportunity cost
market supply curve
national income (NI)
24. The dollar value of all the goods and services sold to house holds.
market supply curve
consumption expenditures
resource
unemployed
25. 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.
consumer income rise
change in quantity demanded
tariff
depression
26. The income earned by households and profits earned by firms after subtracting.
changes in consumer expectations
government expenditures
peak
national income (NI)
27. Decisions by individuals about what to do and what not to do.
perfectly elastic
unemployed
individual choice
normal good
28. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
depression
fiscal policy
demand curve
29. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
investment expenditures
inverse relationship
normal good
opportunity cost
30. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
direct relationship
number of composition of consumers
law of demand
unemployed
31. 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
law of demand
A decrease in TR following an increase in price = elastic demand
market supply curve
interest
32. 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.
complimentary goods
trough
A decrease in TR following an increase in price = elastic demand
aggregate demand curve
33. The addition to total revenue created by selling one additional unit of ouput.
land
inverse relationship
marginal revenue
elastic demand
34. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
trough
demand curve shifts
recession
expansionary monetary policy
35. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
law of demand
A decrease in TR following an increase in price = elastic demand
scarce
Gross National Product
36. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
resource
Gross National Product
changes in consumer expectations
market demand curve
37. The long-run pattern of growth and recession.
law of supply
business cycle
aggregate supply curve
expansionary fiscal policy
38. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
inverse relationship
law of demand
Phillips curve
depreciation
39. 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.
LRAS curv
hyperinflation
consumption expenditures
investment expenditures
40. 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
demand curve
required reserve ratio (RRR)
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
41. The dollar value of production by a country's citizens.
Gross National Product
change in quantity demanded
opportunity cost
inverse relationship
42. Not significantly responsive to changes in price.
total revenue
opportunity cost
business cycles
inelastic
43. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
LRAS curv
market equilibrium
entrepreneurship
44. A bad depressingly prolonged recession in economic activity.
depression
trade deficit
economic aggregates
demand elasticity
45. 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
structural unemployment
number of composition of consumers
price index
46. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
expansion
entrepreneurship
structural unemployment
real GDP
47. The cost of something in terms of what one must give up to get it.
direct relationship
opportunity cost
hyperinflation
disposable personal income
48. The highest point of a business cycle.
inverse relationship
consumer surplus
cyclical unemployment
peak
49. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
aggregate supply curve
trade deficit
law of demand
number of composition of consumers
50. A special tax imposed on imported goods.
tariff
structural unemployment
fiscal policy
market supply curve