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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. A special tax imposed on imported goods.
tariff
aggregate supply curve
law of demand
hidden unemployment
2. The dollar value of all the goods and services sold to house holds.
consumption expenditures
monopoly
Marginal Propensity to Save (MPS)
opportunity cost
3. A measure of the price level - or the average level of prices.
change in quantity demanded
price index
market economy
aggregate supply curve
4. 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
expenditure approach
trough
law of demand
consumption expenditures
5. 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.
economics
expenditure approach
Marginal Propensity to Save (MPS)
demand schedule
6. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
entrepreneurship
demand schedule
economic aggregates
7. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
macroeconomics
trough
import quotas
8. A shift of the demand curve resulting from a change in consumer taste and preferences.
monopoly
consumer taste and preferences
demand curve
trough
9. 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
marginal propensity to consume (MPC)
aggregate demand curve
exchange rate
10. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
perfectly elastic
expansion
law of demand
inelastic
11. The amount of a good actually sold.
opportunity cost
quantity exchanged
expansionary fiscal policy
microeconomics
12. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
consumer taste and preferences
structural unemployment
peak
13. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
consumer taste and preferences
market economy
law of demand
individual choice
14. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
economic aggregates
business cycles
A decrease in TR following an increase in price = elastic demand
consumer income rise
15. 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.
number of composition of consumers
inverse relationship
law of supply
elastic demand
16. Fluctuations in real GDP around the trend value; also called economic fluctuations.
demand curve
business cycles
economic aggregates
consumer good
17. The income earned by households and profits earned by firms after subtracting.
unit elastic
stagflation
structural unemployment
national income (NI)
18. 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.
aggregate supply curve
hyperinflation
trade surplus
LRAS curv
19. Period in which a recession becomes prolonged and deep - involving high unemployment.
demand
depression
demand schedule
Marginal Propensity to Save (MPS)
20. 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).
inflation
market demand curve
expansionary monetary policy
inferior good
21. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
diminishing marginal utility
market demand curve
law of supply
inflation
22. The effort of workers.
inflation
required reserve ratio (RRR)
trade deficit
Labor
23. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
tariff
trade surplus
total revenue
import quotas
24. 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.
depression
unemployment rate
complimentary goods
simple money multiplier
25. 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?
expansion
individual choice
structural unemployment
demand elasticity
26. A curve defining the relationship between real production and price level.
exchange rate
aggregate supply curve
consumer good
Gross Domestic Product
27. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
expansionary monetary policy
cost-push inflation
cyclical unemployment
normal good
28. Anything that shows the economy as a whole.
economic aggregates
required reserve ratio (RRR)
command economy
neutral good
29. 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.
SRAS curve
hidden unemployment
oligopoly
market economy
30. The payment that capital receives in the factor market.
inverse relationship
business cycle
interest
macroeconomics
31. The cost of something in terms of what one must give up to get it.
susbtitute goods
opportunity cost
structural unemployment
expenditure approach
32. Rising prices - across the board.
inflation
normal good
peak
recession
33. 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
movement along a demand curve
macroeconomics
unit elastic
34. Significantly responsive to a change in price.
elastic
individual choice
number of composition of consumers
business cycles
35. Real cost of an item is its opportunity cost.
market economy
substitution effect
opportunity cost
inflation
36. 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
inferior good
Labor
stagflation
37. Government officials make decisions about economy.
trough
direct relationship
command economy
law of supply
38. Anything that can be used to produce something else
demand elasticity
direct relationship
resource
price ceiling
39. The lowest point of a business cycle
trade surplus
aggregate supply curve
trough
government 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
interest
inflation
demand
41. 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
consumer taste and preferences
demand schedule
price floor
42. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
exchange rate
trade deficit
marginal propensity to consume (MPC)
substitution effect
43. 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).
expansionary fiscal policy
national income (NI)
price ceiling
simple money multiplier
44. The deliberate control of the money supply by the Federal government.
monetary policy
perfectly elastic
import quotas
government expenditures
45. Consumer income rise - demand will rise.
elastic demand
purchasing power
diminishing marginal utility
neutral good
46. The willingness and ability of buyers to purchase a good or service.
elastic
consumer good
demand
complimentary goods
47. 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.
demand curve shifts
labor force
real GDP
peak
48. 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.
inflation
demand
elastic demand
microeconomics
49. Goods that go together - if price ? the demand for both that good and complimentary good ?.
real GDP
change in quantity demanded
complimentary goods
national income (NI)
50. An increase or decrease in consumer income will cause a shift in the Demand Curve.
market economy
money multiplier
consumer good
tariff