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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. Restrictions on the quantity of a good that can be imported
import quotas
resource
demand curve shifts
exchange rate
2. The income of households after taxes have been paid
law of demand
disposable personal income
number of composition of consumers
normal good
3. The cost of something in terms of what one must give up to get it.
structural unemployment
opportunity cost
cost-push inflation
demand
4. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
demand-pull inflation
rule of 70
trade deficit
consumer surplus
5. Short-run aggregate supply curve
peak
SRAS curve
hyperinflation
inferior good
6. Price control set when the market price is believed to be too low.
consumption expenditures
diminishing marginal utility
exchange rate
price floor
7. The lowest point of a business cycle
real GDP
trough
demand-pull inflation
market demand curve
8. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
demand elasticity
trade deficit
hyperinflation
substitution effect
9. 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.
Gross National Product
demand schedule
simple money multiplier
marginal revenue
10. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
SRAS curve
individual choice
labor force
stagflation
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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
perfectly elastic
demand-pull inflation
economic aggregates
12. A relationship between two factors in which the factors move in the same direction.
total revenue
direct relationship
Labor
oligopoly
13. The highest point of a business cycle.
peak
demand curve shifts
national economic accounts
hidden unemployment
14. The effort of workers.
macroeconomics
Labor
demand elasticity
cost-push inflation
15. A bad depressingly prolonged recession in economic activity.
consumption expenditures
depression
market supply curve
import quotas
16. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
normal good
trough
price floor
changes in consumer expectations
17. 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).
entrepreneurship
economics
cost-push inflation
business cycles
18. 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?
monopoly
demand elasticity
depression
price index
19. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
law of demand
change in quantity demanded
scarcity
inflation
20. The amount of a good actually sold.
demand curve
command economy
quantity exchanged
fiscal policy
21. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
inflation
structural unemployment
substitution effect
consumer taste and preferences
22. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
A decrease in TR following an increase in price = elastic demand
expenditure approach
demand curve shifts
business cycle
23. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
trough
depression
expansionary monetary policy
24. The sum of all the quantities of a good supplies by all producers at each price.
market equilibrium
tariff
market supply curve
hyperinflation
25. 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.
movement along a demand curve
inelastic demand
monetary policy
macroeconomics
26. (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.
trough
LRAS curv
number of composition of consumers
consumer surplus
27. Expenditure by businesses on plant and equipment and the change in business invention.
consumer good
depression
investment expenditures
perfectly elastic
28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
price floor
consumer taste and preferences
market economy
inferior good
29. 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.
neutral good
Marginal Propensity to Save (MPS)
hyperinflation
movement along a demand curve
30. The dollar value of goods and services sold to governments.
law of demand
consumer taste and preferences
national income (NI)
government expenditures
31. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
tariff
depression
movement along a demand curve
susbtitute goods
32. 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.
government expenditures
resource
import quotas
demand curve shifts
33. Significantly responsive to a change in price.
individual choice
entrepreneurship
elastic
LRAS curv
34. The deliberate control of the money supply by the Federal government.
monetary policy
susbtitute goods
nominal GDP
cost-push inflation
35. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
cyclical unemployment
aggregate demand curve
expansion
stagflation
36. 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
movement along a demand curve
fiscal policy
rule of 70
price ceiling
37. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
changes in consumer expectations
inferior good
market equilibrium
38. The proportion of each additional dollar of income that is saved.
consumption expenditures
elastic
Marginal Propensity to Save (MPS)
expansion
39. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.
oligopoly
movement along a demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
command economy
40. The proportion of each additional dollar of income that will go toward consumption expenditures.
command economy
expenditure approach
total revenue
marginal propensity to consume (MPC)
41. Not significantly responsive to changes in price.
consumer taste and preferences
consumer income rise
inelastic
trough
42. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
business cycle
economic aggregates
normal good
43. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
trough
Marginal Propensity to Save (MPS)
investment expenditures
44. 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.
market supply curve
real GDP
land
hidden unemployment
45. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
inflation
substitution effect
movement along a demand curve
depreciation
46. 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
price floor
neutral good
law of demand
market economy
47. 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.
scarcity
elastic demand
trade deficit
scarce
48. The dollar value of production by a country's citizens.
Gross National Product
perfectly elastic
expansionary fiscal policy
marginal propensity to consume (MPC)
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
stagflation
market demand curve
unemployed
Gross National Product
50. 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
inelastic demand
frictional unemployment
demand schedule
expansionary monetary policy