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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 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.
consumption expenditures
change in quantity demanded
price index
hidden unemployment
2. Decisions by individuals about what to do and what not to do.
demand schedule
unemployment rate
individual choice
government expenditures
3. 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
business cycles
demand-pull inflation
microeconomics
4. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
cyclical unemployment
monopoly
rule of 70
diminishing marginal utility
5. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
government expenditures
economic aggregates
law of supply
6. Not significantly responsive to changes in price.
rule of 70
inelastic
scarce
Gross Domestic Product
7. The willingness and ability of buyers to purchase a good or service.
substitution effect
demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
aggregate demand curve
8. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
expansionary monetary policy
market supply curve
depression
9. An increase in the price level
inflation
trough
purchasing power
microeconomics
10. 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
depreciation
simple money multiplier
law of supply
11. 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?
aggregate supply curve
demand elasticity
labor force
demand curve
12. 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).
unemployment rate
price ceiling
expansion
Gross Domestic Product
13. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
economics
tariff
law of demand
market equilibrium
14. Significantly responsive to a change in price.
demand curve shifts
disposable personal income
recession
elastic
15. Real cost of an item is its opportunity cost.
Phillips curve
simple money multiplier
opportunity cost
elastic demand
16. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
Gross National Product
consumer surplus
LRAS curv
depreciation
17. The dollar value of all the goods and services sold to house holds.
consumption expenditures
market supply curve
national income (NI)
opportunity cost
18. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inelastic demand
consumer taste and preferences
entrepreneurship
19. An industry structure in which there is only one seller for a product.
simple money multiplier
expansionary monetary policy
consumer income rise
monopoly
20. A bad depressingly prolonged recession in economic activity.
LRAS curv
depression
resource
changes in consumer expectations
21. 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
expansionary monetary policy
substitution effect
command economy
oligopoly
22. Consumer income rise - demand will rise.
law of demand
market equilibrium
recession
neutral good
23. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
perfectly elastic
demand schedule
Gross National Product
24. (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
recession
depreciation
stagflation
25. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
hyperinflation
consumer surplus
substitution effect
consumer good
26. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
complimentary goods
microeconomics
money multiplier
law of demand
27. Government officials make decisions about economy.
command economy
exchange rate
microeconomics
frictional unemployment
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
depression
depression
market demand curve
29. 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.
stagflation
consumer taste and preferences
import quotas
inferior good
30. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
rule of 70
national economic accounts
expansionary monetary policy
total revenue
31. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
stagflation
Gross Domestic Product
demand elasticity
32. The cost of something in terms of what one must give up to get it.
aggregate demand curve
business cycles
opportunity cost
cost-push inflation
33. 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).
consumer income rise
scarcity
market demand curve
expansionary fiscal policy
34. 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.
opportunity cost
simple money multiplier
marginal propensity to consume (MPC)
trough
35. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
Phillips curve
price ceiling
entrepreneurship
cost-push inflation
36. A relationship between two factors in which the factors move in the same direction.
direct relationship
diminishing marginal utility
marginal revenue
consumption expenditures
37. The deliberate control of the money supply by the Federal government.
quantity exchanged
structural unemployment
monetary policy
national economic accounts
38. 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 surplus
exchange rate
market economy
39. The dollar value of production within a nation's border.
unit elastic
demand
required reserve ratio (RRR)
Gross Domestic Product
40. Long- run aggregate supply curve
LRAS curv
Labor
demand curve shifts
Phillips curve
41. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
hyperinflation
hidden unemployment
scarce
42. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
import quotas
market equilibrium
expansion
business cycle
43. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
investment expenditures
macroeconomics
money multiplier
aggregate demand curve
44. 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
total revenue
trough
resource
45. 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.
microeconomics
complimentary goods
diminishing marginal utility
expansion
46. A measure of the price level - or the average level of prices.
aggregate demand curve
demand
price index
rule of 70
47. 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.
national income (NI)
perfectly elastic
opportunity cost
change in quantity demanded
48. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
oligopoly
movement along a demand curve
substitution effect
Marginal Propensity to Save (MPS)
49. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
price ceiling
Phillips curve
government expenditures
recession
50. The highest point of a business cycle.
diminishing marginal utility
susbtitute goods
national income (NI)
peak