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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. Government officials make decisions about economy.
demand curve shifts
command economy
susbtitute goods
price ceiling
2. 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
exchange rate
price floor
nominal GDP
monetary policy
3. 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
inverse relationship
economic aggregates
price ceiling
4. The lowest point of a business cycle
trough
inelastic demand
law of demand
change in quantity demanded
5. 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.
change in quantity demanded
consumption expenditures
total revenue
labor force
6. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
land
inflation
SRAS curve
7. The highest point of a business cycle.
peak
normal good
consumer surplus
purchasing power
8. The payment that capital receives in the factor market.
depression
expenditure approach
oligopoly
interest
9. A relationship between two factors in which the factors move in the same direction.
aggregate demand curve
direct relationship
consumption expenditures
neutral good
10. A curve defining the relationship between real production and price level.
command economy
consumption expenditures
aggregate supply curve
frictional unemployment
11. A special tax imposed on imported goods.
tariff
market economy
inelastic demand
simple money multiplier
12. The willingness and ability of buyers to purchase a good or service.
microeconomics
expansionary monetary policy
total revenue
demand
13. 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.
expansionary fiscal policy
structural unemployment
required reserve ratio (RRR)
depreciation
14. The effort of workers.
economics
change in quantity demanded
monopoly
Labor
15. Real cost of an item is its opportunity cost.
opportunity cost
marginal revenue
aggregate supply curve
demand elasticity
16. 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.
scarcity
perfectly elastic
hyperinflation
demand-pull inflation
17. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
scarce
consumer good
money multiplier
price ceiling
18. A Latin phrase meaning 'all things constant.'
trade deficit
stagflation
expansionary fiscal policy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
19. The dollar value of production by a country's citizens.
structural unemployment
Gross National Product
business cycles
demand schedule
20. The transition point between economic recession and recovery.
trough
LRAS curv
price floor
resource
21. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
business cycle
stagflation
expenditure approach
perfectly elastic
22. Price control set when the market price is believed to be too low.
total revenue
normal good
price floor
substitution effect
23. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
opportunity cost
recession
trade deficit
LRAS curv
24. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
entrepreneurship
tariff
law of supply
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.
inferior good
import quotas
susbtitute goods
opportunity cost
26. 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.
price index
trade deficit
law of supply
Phillips curve
27. 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.
depression
oligopoly
purchasing power
hidden unemployment
28. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
consumer taste and preferences
economic aggregates
land
hyperinflation
29. The study of scarcity and choice.
law of supply
direct relationship
economics
exchange rate
30. The proportion of each additional dollar of income that is saved.
unit elastic
demand elasticity
required reserve ratio (RRR)
Marginal Propensity to Save (MPS)
31. The dollar value of goods and services sold to governments.
resource
direct relationship
depression
government expenditures
32. The income of households after taxes have been paid
aggregate supply curve
disposable personal income
expansionary monetary policy
resource
33. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
perfectly elastic
changes in consumer expectations
peak
complimentary goods
34. 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.
law of supply
simple money multiplier
cyclical unemployment
inelastic demand
35. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
expansion
monetary policy
monopoly
36. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
microeconomics
substitution effect
market equilibrium
37. The long-run pattern of growth and recession.
business cycle
inferior good
monopoly
movement along a demand curve
38. Not significantly responsive to changes in price.
normal good
opportunity cost
inelastic
price floor
39. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
normal good
required reserve ratio (RRR)
macroeconomics
scarce
40. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
inflation
land
labor force
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
unit elastic
inflation
trough
rule of 70
42. 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
Labor
LRAS curv
substitution effect
43. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
stagflation
elastic
market equilibrium
susbtitute goods
44. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
elastic
economic aggregates
Phillips curve
45. 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.
price ceiling
inelastic demand
stagflation
demand curve shifts
46. (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
complimentary goods
stagflation
nominal GDP
47. The dollar value of all the goods and services sold to house holds.
market equilibrium
consumption expenditures
resource
frictional unemployment
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.
demand elasticity
investment expenditures
trade deficit
hyperinflation
49. A bad depressingly prolonged recession in economic activity.
elastic demand
consumption expenditures
peak
depression
50. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
cost-push inflation
command economy
consumption expenditures
scarce