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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. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
expansionary fiscal policy
frictional unemployment
government expenditures
2. The long-run pattern of growth and recession.
entrepreneurship
peak
hidden unemployment
business cycle
3. The sum of all the quantities of a good supplies by all producers at each price.
stagflation
simple money multiplier
business cycle
market supply curve
4. The dollar value of goods and services sold to governments.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
price index
government expenditures
monetary policy
5. 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
microeconomics
business cycles
expansionary monetary policy
price floor
6. 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
inferior good
total revenue
required reserve ratio (RRR)
7. Goods that go together - if price ? the demand for both that good and complimentary good ?.
simple money multiplier
complimentary goods
inelastic demand
frictional unemployment
8. When the percent of change in the quantity demanded equals the percent of change in price.
aggregate supply curve
unit elastic
substitution effect
movement along a demand curve
9. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
entrepreneurship
expansion
price index
unemployed
10. The dollar value of production within a nation's border.
command economy
opportunity cost
Gross Domestic Product
law of demand
11. 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
aggregate supply curve
law of demand
unemployment rate
depreciation
12. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
number of composition of consumers
expenditure approach
demand curve
consumption expenditures
13. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
stagflation
Labor
business cycle
substitution effect
14. Rising prices - across the board.
expansionary monetary policy
law of demand
inflation
tariff
15. 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
consumer income rise
land
unemployment rate
16. Expenditure by businesses on plant and equipment and the change in business invention.
opportunity cost
investment expenditures
aggregate supply curve
land
17. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr
exchange rate
inferior good
direct relationship
real GDP
18. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
peak
demand-pull inflation
consumer income rise
labor force
19. Not significantly responsive to changes in price.
inelastic
quantity exchanged
national economic accounts
inflation
20. The lowest point of a business cycle
trough
trade deficit
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
21. The study of scarcity and choice.
economics
inelastic
monetary policy
fiscal policy
22. The price of a domestic currency in terms of a foreign currency.
quantity exchanged
exchange rate
change in quantity demanded
economic aggregates
23. 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.
marginal propensity to consume (MPC)
depreciation
quantity exchanged
law of supply
24. The dollar value of production by a country's citizens.
neutral good
Gross National Product
consumer good
depression
25. A Latin phrase meaning 'all things constant.'
Labor
cyclical unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inelastic demand
26. Fluctuations in real GDP around the trend value; also called economic fluctuations.
inferior good
A decrease in TR following an increase in price = elastic demand
unemployed
business cycles
27. Significantly responsive to a change in price.
aggregate supply curve
consumer income rise
direct relationship
elastic
28. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
interest
price index
consumer income rise
29. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
frictional unemployment
demand curve
elastic
30. 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.
Phillips curve
direct relationship
elastic demand
cyclical unemployment
31. Decisions by individuals about what to do and what not to do.
individual choice
demand curve
monetary policy
law of demand
32. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
demand-pull inflation
perfectly elastic
fiscal policy
price index
33. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
economic aggregates
depreciation
trade deficit
complimentary goods
34. 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.
cost-push inflation
business cycles
Gross National Product
demand-pull inflation
35. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
business cycle
depreciation
cyclical unemployment
Gross Domestic Product
36. The amount of money available to consumers to purchase goods and services.
aggregate demand curve
normal good
purchasing power
inelastic demand
37. 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
exchange rate
demand
fiscal policy
38. The deliberate control of the money supply by the Federal government.
unemployment rate
demand-pull inflation
monetary policy
scarcity
39. The addition to total revenue created by selling one additional unit of ouput.
demand schedule
marginal revenue
monetary policy
fiscal policy
40. The transition point between economic recession and recovery.
trough
money multiplier
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
cost-push inflation
41. The cost of something in terms of what one must give up to get it.
simple money multiplier
opportunity cost
Marginal Propensity to Save (MPS)
disposable personal income
42. An increase or decrease in consumer income will cause a shift in the Demand Curve.
marginal propensity to consume (MPC)
depression
law of demand
consumer good
43. 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.
purchasing power
frictional unemployment
simple money multiplier
elastic
44. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
inflation
depression
elastic
45. A curve defining the relationship between real production and price level.
monetary policy
aggregate supply curve
required reserve ratio (RRR)
consumption expenditures
46. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
demand schedule
consumer taste and preferences
scarce
47. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
national income (NI)
diminishing marginal utility
Gross Domestic Product
stagflation
48. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
cyclical unemployment
elastic
normal good
price index
49. 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
unemployed
consumer good
hidden unemployment
depression
50. Consumer income rise - demand will rise.
neutral good
expenditure approach
Labor
LRAS curv