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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 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.
economic aggregates
expansionary fiscal policy
stagflation
disposable personal income
2. The sum of all the quantities of a good supplies by all producers at each price.
A decrease in TR following an increase in price = elastic demand
market supply curve
unemployment rate
labor force
3. The addition to total revenue created by selling one additional unit of ouput.
number of composition of consumers
marginal revenue
demand curve
diminishing marginal utility
4. 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.
scarce
demand curve shifts
price index
oligopoly
5. The proportion of each additional dollar of income that is saved.
market economy
microeconomics
complimentary goods
Marginal Propensity to Save (MPS)
6. A shift of the demand curve resulting from a change in consumer taste and preferences.
marginal propensity to consume (MPC)
opportunity cost
consumer taste and preferences
consumption expenditures
7. The amount of money available to consumers to purchase goods and services.
price floor
purchasing power
disposable personal income
marginal propensity to consume (MPC)
8. 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.
inverse relationship
market demand curve
macroeconomics
microeconomics
9. 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.
inverse relationship
hyperinflation
price index
exchange rate
10. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
macroeconomics
movement along a demand curve
demand
11. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
economic aggregates
depreciation
market demand curve
market economy
12. The amount of a good actually sold.
oligopoly
law of demand
quantity exchanged
marginal revenue
13. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
demand curve shifts
money multiplier
land
oligopoly
14. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
Gross National Product
microeconomics
substitution effect
15. 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
expansionary monetary policy
trough
consumer good
16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
frictional unemployment
national income (NI)
real GDP
susbtitute goods
17. 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.
simple money multiplier
consumer surplus
consumption expenditures
oligopoly
18. The dollar value of all the goods and services sold to house holds.
law of demand
consumption expenditures
investment expenditures
market demand curve
19. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
investment expenditures
changes in consumer expectations
demand curve
inelastic
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
macroeconomics
consumption expenditures
cost-push inflation
cyclical unemployment
21. Real cost of an item is its opportunity cost.
market supply curve
opportunity cost
market economy
substitution effect
22. An increase in the price level
A decrease in TR following an increase in price = elastic demand
market supply curve
inflation
expenditure approach
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.
recession
rule of 70
money multiplier
law of supply
24. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
change in quantity demanded
demand
inverse relationship
law of supply
25. 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
command economy
aggregate demand curve
unemployed
26. The highest point of a business cycle.
demand curve shifts
trough
unit elastic
peak
27. The income earned by households and profits earned by firms after subtracting.
depression
monopoly
national income (NI)
marginal propensity to consume (MPC)
28. 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.
A decrease in TR following an increase in price = elastic demand
change in quantity demanded
command economy
inelastic demand
29. The price of a domestic currency in terms of a foreign currency.
demand-pull inflation
neutral good
exchange rate
peak
30. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
law of supply
investment expenditures
required reserve ratio (RRR)
SRAS curve
31. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.
inflation
individual choice
demand schedule
trough
32. Anything that shows the economy as a whole.
expansion
price floor
market economy
economic aggregates
33. A special tax imposed on imported goods.
tariff
inferior good
trade deficit
national income (NI)
34. The study of scarcity and choice.
substitution effect
economics
expansionary fiscal policy
demand curve shifts
35. When the percent of change in the quantity demanded equals the percent of change in price.
inflation
scarcity
macroeconomics
unit elastic
36. A bad depressingly prolonged recession in economic activity.
trough
depression
inverse relationship
unemployed
37. 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
marginal revenue
Marginal Propensity to Save (MPS)
monopoly
38. The transition point between economic recession and recovery.
Gross National Product
price floor
trough
opportunity cost
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.
hidden unemployment
fiscal policy
frictional unemployment
expenditure approach
40. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
unemployed
economics
entrepreneurship
trade deficit
41. Price control set when the market price is believed to be too low.
price floor
fiscal policy
aggregate supply curve
number of composition of consumers
42. The long-run pattern of growth and recession.
substitution effect
peak
business cycle
opportunity cost
43. Consumer income rise - demand will rise.
nominal GDP
disposable personal income
neutral good
demand schedule
44. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
national economic accounts
stagflation
expenditure approach
substitution effect
45. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc
macroeconomics
nominal GDP
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expansion
46. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
oligopoly
total revenue
aggregate demand curve
individual choice
47. 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?
perfectly elastic
opportunity cost
individual choice
demand elasticity
48. 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).
demand curve shifts
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unemployment rate
depression
49. 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).
market equilibrium
land
expansionary fiscal policy
nominal GDP
50. Not significantly responsive to changes in price.
scarcity
required reserve ratio (RRR)
cyclical unemployment
inelastic