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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. 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).
number of composition of consumers
purchasing power
cost-push inflation
unemployment rate
2. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
oligopoly
SRAS curve
susbtitute goods
consumer surplus
3. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
aggregate supply curve
labor force
oligopoly
land
4. Fluctuations in real GDP around the trend value; also called economic fluctuations.
expansion
demand curve shifts
elastic demand
business cycles
5. (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.
A decrease in TR following an increase in price = elastic demand
number of composition of consumers
simple money multiplier
business cycle
6. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
demand schedule
demand curve shifts
law of demand
cyclical unemployment
7. The dollar value of goods and services sold to governments.
LRAS curv
government expenditures
interest
trough
8. A special tax imposed on imported goods.
consumer taste and preferences
consumer surplus
tariff
complimentary goods
9. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
demand
consumer income rise
consumer taste and preferences
Gross Domestic Product
10. The effort of workers.
business cycles
Labor
Marginal Propensity to Save (MPS)
recession
11. A shift of the demand curve resulting from a change in consumer taste and preferences.
movement along a demand curve
cyclical unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer taste and preferences
12. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
elastic
import quotas
quantity exchanged
13. 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.
recession
inferior good
depression
import quotas
14. 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
market economy
price index
rule of 70
fiscal policy
15. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
change in quantity demanded
susbtitute goods
opportunity cost
simple money multiplier
16. The cost of something in terms of what one must give up to get it.
opportunity cost
land
expansion
aggregate demand curve
17. Real cost of an item is its opportunity cost.
market economy
opportunity cost
susbtitute goods
entrepreneurship
18. Expenditure by businesses on plant and equipment and the change in business invention.
land
investment expenditures
depreciation
market equilibrium
19. A bad depressingly prolonged recession in economic activity.
aggregate supply curve
elastic
depression
LRAS curv
20. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
cost-push inflation
stagflation
elastic demand
21. 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.
demand schedule
rule of 70
business cycles
demand-pull inflation
22. The willingness and ability of buyers to purchase a good or service.
demand
business cycle
individual choice
cost-push inflation
23. 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.
trade deficit
inelastic demand
demand curve shifts
marginal revenue
24. An increase in the price level
depreciation
government expenditures
LRAS curv
inflation
25. Government officials make decisions about economy.
unemployment rate
command economy
demand elasticity
expenditure approach
26. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
individual choice
business cycle
expansionary fiscal policy
inverse relationship
27. 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.
monopoly
expansion
stagflation
oligopoly
28. An increase or decrease in consumer income will cause a shift in the Demand Curve.
nominal GDP
consumer good
unemployed
recession
29. The transition point between economic recession and recovery.
trough
economics
depression
consumption expenditures
30. The amount of a good actually sold.
consumer surplus
quantity exchanged
exchange rate
elastic
31. 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.
labor force
price index
purchasing power
change in quantity demanded
32. The long-run pattern of growth and recession.
trough
trough
command economy
business cycle
33. 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.
aggregate demand curve
Gross National Product
stagflation
trade surplus
34. Significantly responsive to a change in price.
demand
depreciation
expansionary fiscal policy
elastic
35. Period in which a recession becomes prolonged and deep - involving high unemployment.
consumption expenditures
elastic demand
depression
aggregate supply curve
36. Anything that can be used to produce something else
monetary policy
resource
microeconomics
fiscal policy
37. The dollar value of all the goods and services sold to house holds.
expansionary fiscal policy
scarce
consumption expenditures
import quotas
38. 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.
opportunity cost
demand curve shifts
cost-push inflation
law of demand
39. A curve defining the relationship between real production and price level.
demand schedule
LRAS curv
aggregate supply curve
consumer surplus
40. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
cost-push inflation
law of supply
expenditure approach
recession
41. Consumer income rise - demand will rise.
LRAS curv
neutral good
business cycle
elastic
42. 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
unemployment rate
neutral good
number of composition of consumers
unemployed
43. 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.
exchange rate
fiscal policy
microeconomics
macroeconomics
44. The addition to total revenue created by selling one additional unit of ouput.
opportunity cost
marginal revenue
aggregate supply curve
depression
45. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
unemployed
investment expenditures
expansionary fiscal policy
national economic accounts
46. The amount of money available to consumers to purchase goods and services.
resource
unit elastic
purchasing power
economic aggregates
47. The income of households after taxes have been paid
substitution effect
inelastic
disposable personal income
scarcity
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).
unemployment rate
macroeconomics
Labor
economics
49. 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
depression
opportunity cost
trough
50. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
complimentary goods
Labor
diminishing marginal utility
scarcity