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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 the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
elastic
command economy
expansion
inelastic
2. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
expenditure approach
diminishing marginal utility
consumer income rise
fiscal policy
3. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
opportunity cost
marginal propensity to consume (MPC)
complimentary goods
movement along a demand curve
4. Expenditure by businesses on plant and equipment and the change in business invention.
cyclical unemployment
national economic accounts
economics
investment expenditures
5. The dollar value of production by a country's citizens.
Gross National Product
consumer surplus
stagflation
real GDP
6. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
required reserve ratio (RRR)
demand curve
movement along a demand curve
depression
7. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
rule of 70
aggregate demand curve
national economic accounts
changes in consumer expectations
8. 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.
inflation
inferior good
unemployment rate
government expenditures
9. 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
Gross National Product
rule of 70
changes in consumer expectations
resource
10. The highest point of a business cycle.
peak
required reserve ratio (RRR)
market equilibrium
simple money multiplier
11. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
changes in consumer expectations
LRAS curv
fiscal policy
demand curve shifts
12. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
scarcity
SRAS curve
susbtitute goods
law of demand
13. The payment that capital receives in the factor market.
inflation
interest
consumer surplus
price floor
14. Consumer income rise - demand will rise.
price floor
neutral good
law of demand
unit elastic
15. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
opportunity cost
frictional unemployment
labor force
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
oligopoly
demand elasticity
cost-push inflation
17. Government officials make decisions about economy.
depression
opportunity cost
command economy
unemployment rate
18. The long-run pattern of growth and recession.
consumer taste and preferences
opportunity cost
business cycle
investment expenditures
19. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
money multiplier
trough
perfectly elastic
20. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
resource
trough
depreciation
price floor
21. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
business cycles
recession
consumption expenditures
expenditure approach
22. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
nominal GDP
price floor
cyclical unemployment
rule of 70
23. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
trade deficit
elastic
unemployed
24. The dollar value of all the goods and services sold to house holds.
Labor
scarcity
consumption expenditures
demand curve shifts
25. 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
inflation
inverse relationship
price index
26. Long- run aggregate supply curve
cyclical unemployment
aggregate demand curve
LRAS curv
unemployment rate
27. An increase in the price level
Marginal Propensity to Save (MPS)
consumer income rise
inflation
normal good
28. When the percent of change in the quantity demanded equals the percent of change in price.
cyclical unemployment
law of demand
unit elastic
macroeconomics
29. 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
LRAS curv
fiscal policy
unemployed
demand-pull inflation
30. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
monopoly
inverse relationship
opportunity cost
trade surplus
31. 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.
market supply curve
perfectly elastic
susbtitute goods
oligopoly
32. Rising prices - across the board.
Phillips curve
exchange rate
inflation
susbtitute goods
33. 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).
business cycles
real GDP
tariff
expansionary fiscal policy
34. Not significantly responsive to changes in price.
market demand curve
purchasing power
business cycles
inelastic
35. Anything that shows the economy as a whole.
number of composition of consumers
economic aggregates
cost-push inflation
market supply curve
36. An industry structure in which there is only one seller for a product.
hyperinflation
investment expenditures
monopoly
inelastic demand
37. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
business cycle
demand curve
changes in consumer expectations
38. Real cost of an item is its opportunity cost.
trade deficit
complimentary goods
opportunity cost
purchasing power
39. 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.
Labor
national income (NI)
trade surplus
hidden unemployment
40. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer income rise
consumer taste and preferences
opportunity cost
consumer good
41. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
perfectly elastic
structural unemployment
depreciation
scarce
42. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
individual choice
consumption expenditures
normal good
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
43. 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
business cycle
law of demand
inelastic demand
susbtitute goods
44. A special tax imposed on imported goods.
market demand curve
frictional unemployment
depreciation
tariff
45. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
opportunity cost
market demand curve
susbtitute goods
46. 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.
change in quantity demanded
price index
opportunity cost
trough
47. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
price index
changes in consumer expectations
number of composition of consumers
48. 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.
nominal GDP
change in quantity demanded
simple money multiplier
national income (NI)
49. The dollar value of goods and services sold to governments.
elastic
simple money multiplier
government expenditures
unemployed
50. Significantly responsive to a change in price.
demand curve shifts
Gross Domestic Product
elastic
consumer taste and preferences