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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. The income of households after taxes have been paid
hidden unemployment
disposable personal income
aggregate demand curve
consumer surplus
2. Fluctuations in real GDP around the trend value; also called economic fluctuations.
expansionary monetary policy
individual choice
business cycles
substitution effect
3. 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
money multiplier
scarce
complimentary goods
rule of 70
4. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
depreciation
consumer good
trade deficit
frictional unemployment
5. Consumer income rise - demand will rise.
microeconomics
money multiplier
neutral good
consumer income rise
6. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
unemployed
exchange rate
trade surplus
elastic
7. The proportion of each additional dollar of income that is saved.
consumer good
Marginal Propensity to Save (MPS)
peak
opportunity cost
8. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
expansionary fiscal policy
Marginal Propensity to Save (MPS)
entrepreneurship
tariff
9. Rising prices - across the board.
unit elastic
consumer good
inferior good
inflation
10. A shift of the demand curve resulting from a change in consumer taste and preferences.
resource
SRAS curve
consumer taste and preferences
unemployment rate
11. The transition point between economic recession and recovery.
trough
oligopoly
depression
scarce
12. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
microeconomics
diminishing marginal utility
unit elastic
monopoly
13. 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).
hyperinflation
microeconomics
market supply curve
market demand curve
14. The deliberate control of the money supply by the Federal government.
opportunity cost
macroeconomics
market economy
monetary policy
15. Price control set when the market price is believed to be too high.
substitution effect
LRAS curv
price ceiling
trade surplus
16. The dollar value of goods and services sold to governments.
government expenditures
demand curve shifts
entrepreneurship
aggregate demand curve
17. 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.
demand elasticity
real GDP
perfectly elastic
Labor
18. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
national economic accounts
scarcity
price ceiling
normal good
19. The lowest point of a business cycle
inflation
nominal GDP
trough
price index
20. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
consumer good
opportunity cost
inelastic demand
A decrease in TR following an increase in price = elastic demand
21. 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
LRAS curv
consumption expenditures
recession
22. A bad depressingly prolonged recession in economic activity.
depression
trough
law of demand
inflation
23. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
economic aggregates
national income (NI)
peak
24. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
inelastic demand
aggregate supply curve
business cycle
25. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
required reserve ratio (RRR)
opportunity cost
trough
expenditure approach
26. Real cost of an item is its opportunity cost.
demand schedule
business cycles
inflation
opportunity cost
27. A measure of the price level - or the average level of prices.
demand
price index
susbtitute goods
marginal revenue
28. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
disposable personal income
scarce
price floor
29. An increase or decrease in consumer income will cause a shift in the Demand Curve.
market supply curve
business cycle
Phillips curve
consumer good
30. 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?
demand elasticity
total revenue
complimentary goods
command economy
31. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
marginal revenue
monopoly
movement along a demand curve
Labor
32. The income earned by households and profits earned by firms after subtracting.
unemployed
law of demand
Gross National Product
national income (NI)
33. 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
real GDP
fiscal policy
hyperinflation
34. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
tariff
required reserve ratio (RRR)
expenditure approach
35. 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.
aggregate demand curve
structural unemployment
trough
monetary policy
36. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
aggregate demand curve
economics
total revenue
peak
37. 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
consumption expenditures
hyperinflation
inferior good
expansionary monetary policy
38. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
total revenue
aggregate supply curve
economics
macroeconomics
39. (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.
substitution effect
number of composition of consumers
tariff
market equilibrium
40. Restrictions on the quantity of a good that can be imported
cost-push inflation
peak
labor force
import quotas
41. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
diminishing marginal utility
nominal GDP
money multiplier
disposable personal income
42. 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
complimentary goods
demand
A decrease in TR following an increase in price = elastic demand
43. 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.
elastic demand
money multiplier
market economy
expansionary monetary policy
44. 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.
stagflation
Phillips curve
rule of 70
substitution effect
45. Significantly responsive to a change in price.
complimentary goods
inferior good
elastic
inflation
46. The sum of all the quantities of a good supplies by all producers at each price.
labor force
market supply curve
economic aggregates
interest
47. A special tax imposed on imported goods.
direct relationship
unit elastic
consumer surplus
tariff
48. Anything that shows the economy as a whole.
depression
economic aggregates
required reserve ratio (RRR)
market equilibrium
49. Not significantly responsive to changes in price.
inelastic
movement along a demand curve
Labor
unemployed
50. 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.
hidden unemployment
demand
neutral good
perfectly elastic