SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
movement along a demand curve
expansionary monetary policy
trough
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.
elastic demand
depreciation
inverse relationship
demand
3. An industry structure in which there is only one seller for a product.
purchasing power
monopoly
number of composition of consumers
money multiplier
4. 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
demand curve shifts
entrepreneurship
trough
expansionary monetary policy
5. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
demand-pull inflation
susbtitute goods
hyperinflation
expansion
6. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
Phillips curve
frictional unemployment
depreciation
total revenue
7. Not significantly responsive to changes in price.
labor force
economics
inelastic
economic aggregates
8. A relationship between two factors in which the factors move in the same direction.
fiscal policy
law of supply
trade surplus
direct relationship
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
business cycle
national income (NI)
market economy
unemployed
10. When the percent of change in the quantity demanded equals the percent of change in price.
demand elasticity
law of supply
market equilibrium
unit elastic
11. Anything that shows the economy as a whole.
market equilibrium
diminishing marginal utility
unit elastic
economic aggregates
12. Rising prices - across the board.
demand curve shifts
consumer taste and preferences
inflation
national economic accounts
13. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
consumer income rise
trough
aggregate supply curve
demand curve
14. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
purchasing power
fiscal policy
changes in consumer expectations
elastic
15. Consumer income rise - demand will rise.
neutral good
elastic
purchasing power
perfectly elastic
16. A measure of the price level - or the average level of prices.
perfectly elastic
money multiplier
unit elastic
price index
17. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
inverse relationship
scarce
investment expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
18. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
nominal GDP
trade surplus
economic aggregates
19. 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
import quotas
complimentary goods
trough
rule of 70
20. The cost of something in terms of what one must give up to get it.
entrepreneurship
opportunity cost
total revenue
changes in consumer expectations
21. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
tariff
Gross National Product
trade deficit
22. 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.
land
market economy
inferior good
tariff
23. The amount of money available to consumers to purchase goods and services.
purchasing power
recession
command economy
aggregate demand curve
24. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
real GDP
Phillips curve
disposable personal income
individual choice
25. The dollar value of all the goods and services sold to house holds.
demand elasticity
cyclical unemployment
consumption expenditures
nominal GDP
26. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
expansionary fiscal policy
elastic
entrepreneurship
marginal revenue
27. 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.
depression
individual choice
inelastic demand
interest
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.
demand curve
required reserve ratio (RRR)
opportunity cost
total revenue
29. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
real GDP
investment expenditures
import quotas
30. 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
cyclical unemployment
market equilibrium
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.
labor force
trade deficit
demand schedule
purchasing power
32. The long-run pattern of growth and recession.
inflation
consumer taste and preferences
business cycle
required reserve ratio (RRR)
33. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.
oligopoly
law of demand
simple money multiplier
scarcity
34. The amount of a good actually sold.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
money multiplier
elastic
quantity exchanged
35. The dollar value of production within a nation's border.
hyperinflation
Gross Domestic Product
command economy
disposable personal income
36. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
economic aggregates
business cycle
Labor
37. A shift of the demand curve resulting from a change in consumer taste and preferences.
monetary policy
government expenditures
consumer taste and preferences
consumption expenditures
38. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
demand
market supply curve
market equilibrium
39. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
opportunity cost
hyperinflation
monetary policy
40. The highest point of a business cycle.
investment expenditures
hidden unemployment
unemployed
peak
41. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
land
A decrease in TR following an increase in price = elastic demand
Labor
unemployment rate
42. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).
cost-push inflation
opportunity cost
demand-pull inflation
individual choice
43. The transition point between economic recession and recovery.
required reserve ratio (RRR)
national economic accounts
trough
cyclical unemployment
44. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
peak
aggregate demand curve
unit elastic
45. Restrictions on the quantity of a good that can be imported
import quotas
expansionary monetary policy
peak
elastic demand
46. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
labor force
trough
real GDP
47. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
resource
nominal GDP
diminishing marginal utility
law of demand
48. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
business cycles
elastic demand
economic aggregates
49. The income earned by households and profits earned by firms after subtracting.
peak
inflation
investment expenditures
national income (NI)
50. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).
SRAS curve
consumer surplus
money multiplier
expansionary fiscal policy