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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 curve defining the relationship between real production and price level.
aggregate demand curve
recession
aggregate supply curve
trough
2. Significantly responsive to a change in price.
elastic
business cycle
trough
diminishing marginal utility
3. An industry structure in which there is only one seller for a product.
monopoly
cost-push inflation
LRAS curv
depression
4. When the percent of change in the quantity demanded equals the percent of change in price.
depreciation
market economy
unit elastic
market equilibrium
5. The addition to total revenue created by selling one additional unit of ouput.
business cycles
hyperinflation
demand curve shifts
marginal revenue
6. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
demand schedule
law of demand
changes in consumer expectations
scarcity
7. 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
marginal revenue
inferior good
resource
8. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
substitution effect
recession
purchasing power
diminishing marginal utility
9. The proportion of each additional dollar of income that is saved.
microeconomics
expansion
Marginal Propensity to Save (MPS)
money multiplier
10. 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.
number of composition of consumers
money multiplier
complimentary goods
inferior good
11. 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.
inverse relationship
business cycle
perfectly elastic
hidden unemployment
12. Price control set when the market price is believed to be too high.
scarce
price ceiling
disposable personal income
economic aggregates
13. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
macroeconomics
marginal revenue
Phillips curve
14. Goods that go together - if price ? the demand for both that good and complimentary good ?.
changes in consumer expectations
land
complimentary goods
inflation
15. The long-run pattern of growth and recession.
marginal revenue
business cycle
aggregate demand curve
marginal propensity to consume (MPC)
16. 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.
hyperinflation
business cycles
complimentary goods
consumer taste and preferences
17. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
scarcity
interest
law of supply
market equilibrium
18. 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).
trough
unemployment rate
economic aggregates
change in quantity demanded
19. A shift of the demand curve resulting from a change in consumer taste and preferences.
A decrease in TR following an increase in price = elastic demand
market equilibrium
Gross National Product
consumer taste and preferences
20. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
law of supply
demand curve shifts
trough
21. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
command economy
total revenue
normal good
price ceiling
22. A Latin phrase meaning 'all things constant.'
exchange rate
marginal propensity to consume (MPC)
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
changes in consumer expectations
23. Restrictions on the quantity of a good that can be imported
unit elastic
rule of 70
interest
import quotas
24. Rising prices - across the board.
substitution effect
market equilibrium
diminishing marginal utility
inflation
25. 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
scarce
exchange rate
aggregate demand curve
unemployed
26. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
direct relationship
scarce
consumer income rise
simple money multiplier
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.
depreciation
business cycle
marginal revenue
hidden unemployment
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
demand
movement along a demand curve
Phillips curve
consumption expenditures
29. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
depression
demand curve
aggregate demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
30. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
market equilibrium
structural unemployment
government expenditures
31. 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
Phillips curve
oligopoly
opportunity cost
rule of 70
32. The sum of all the quantities of a good supplies by all producers at each price.
demand curve shifts
market supply curve
simple money multiplier
purchasing power
33. (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.
unemployed
A decrease in TR following an increase in price = elastic demand
number of composition of consumers
entrepreneurship
34. The lowest point of a business cycle
aggregate supply curve
trough
unemployment rate
direct relationship
35. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
inferior good
law of demand
land
susbtitute goods
36. A bad depressingly prolonged recession in economic activity.
depression
hidden unemployment
national economic accounts
normal good
37. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
diminishing marginal utility
number of composition of consumers
consumer taste and preferences
38. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
demand-pull inflation
land
quantity exchanged
frictional unemployment
39. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
consumer taste and preferences
tariff
monopoly
40. The dollar value of all the goods and services sold to house holds.
expenditure approach
SRAS curve
A decrease in TR following an increase in price = elastic demand
consumption expenditures
41. The income earned by households and profits earned by firms after subtracting.
simple money multiplier
labor force
national income (NI)
law of demand
42. A relationship between two factors in which the factors move in the same direction.
direct relationship
required reserve ratio (RRR)
market economy
import quotas
43. 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.
import quotas
microeconomics
simple money multiplier
number of composition of consumers
44. Fluctuations in real GDP around the trend value; also called economic fluctuations.
opportunity cost
business cycles
expansion
tariff
45. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
market equilibrium
depreciation
labor force
national income (NI)
46. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
cost-push inflation
demand curve
entrepreneurship
expenditure approach
47. 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
consumer good
law of supply
consumer taste and preferences
48. The dollar value of production by a country's citizens.
LRAS curv
demand-pull inflation
Gross National Product
demand curve shifts
49. The payment that capital receives in the factor market.
substitution effect
interest
market supply curve
marginal propensity to consume (MPC)
50. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
elastic
fiscal policy
command economy
frictional unemployment