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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. Anything that shows the economy as a whole.
diminishing marginal utility
expansionary fiscal policy
law of supply
economic aggregates
2. The sum of all the quantities of a good supplies by all producers at each price.
depreciation
quantity exchanged
inflation
market supply curve
3. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
trough
entrepreneurship
consumer income rise
demand curve
4. An industry structure in which there is only one seller for a product.
SRAS curve
interest
change in quantity demanded
monopoly
5. 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.
unemployment rate
change in quantity demanded
trade deficit
expansionary fiscal policy
6. 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
demand
national economic accounts
rule of 70
LRAS curv
7. Price control set when the market price is believed to be too low.
macroeconomics
cyclical unemployment
price floor
susbtitute goods
8. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
inelastic demand
aggregate supply curve
structural unemployment
9. A measure of the price level - or the average level of prices.
cyclical unemployment
import quotas
stagflation
price index
10. Rising prices - across the board.
scarce
inflation
inelastic demand
consumer surplus
11. Price control set when the market price is believed to be too high.
consumer surplus
change in quantity demanded
price ceiling
normal good
12. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
consumer good
fiscal policy
price floor
13. A special tax imposed on imported goods.
entrepreneurship
expenditure approach
aggregate supply curve
tariff
14. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
demand schedule
government expenditures
consumption expenditures
15. 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.
stagflation
law of supply
nominal GDP
inelastic demand
16. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
land
consumer surplus
demand curve
scarce
17. 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)
marginal revenue
inflation
opportunity cost
18. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
neutral good
unemployment rate
normal good
trough
19. Significantly responsive to a change in price.
land
stagflation
substitution effect
elastic
20. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
stagflation
price ceiling
hyperinflation
expenditure approach
21. The proportion of each additional dollar of income that is saved.
investment expenditures
hyperinflation
cyclical unemployment
Marginal Propensity to Save (MPS)
22. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
inverse relationship
market economy
movement along a demand curve
substitution effect
23. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
recession
Gross National Product
microeconomics
24. Decisions by individuals about what to do and what not to do.
trade surplus
individual choice
interest
movement along a demand curve
25. 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.
microeconomics
tariff
SRAS curve
aggregate demand curve
26. 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.
Gross National Product
consumer good
oligopoly
microeconomics
27. Expenditure by businesses on plant and equipment and the change in business invention.
monopoly
investment expenditures
demand
expansionary fiscal policy
28. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
national economic accounts
purchasing power
rule of 70
29. The dollar value of production by a country's citizens.
demand-pull inflation
Gross National Product
change in quantity demanded
command economy
30. 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).
business cycle
marginal revenue
unemployment rate
disposable personal income
31. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
movement along a demand curve
fiscal policy
market economy
depression
32. 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
hyperinflation
cost-push inflation
law of demand
demand schedule
33. The cost of something in terms of what one must give up to get it.
economics
trough
fiscal policy
opportunity cost
34. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
monetary policy
law of demand
elastic
depression
35. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.
aggregate demand curve
interest
complimentary goods
market equilibrium
36. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
aggregate demand curve
monopoly
unemployment rate
demand curve
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
Gross Domestic Product
stagflation
perfectly elastic
38. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
law of supply
complimentary goods
inflation
market economy
39. The income earned by households and profits earned by firms after subtracting.
import quotas
consumer good
national income (NI)
law of demand
40. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
business cycles
total revenue
labor force
41. Long- run aggregate supply curve
depreciation
LRAS curv
labor force
trade surplus
42. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
demand curve
consumer good
demand-pull inflation
43. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
frictional unemployment
nominal GDP
trough
44. Restrictions on the quantity of a good that can be imported
import quotas
law of demand
diminishing marginal utility
expansionary monetary policy
45. 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?
inverse relationship
aggregate supply curve
demand elasticity
quantity exchanged
46. 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
rule of 70
simple money multiplier
cost-push inflation
unemployed
47. 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.
inflation
law of supply
national income (NI)
total revenue
48. 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).
stagflation
changes in consumer expectations
expansionary fiscal policy
consumer surplus
49. The proportion of each additional dollar of income that will go toward consumption expenditures.
monetary policy
macroeconomics
marginal propensity to consume (MPC)
exchange rate
50. The price of a domestic currency in terms of a foreign currency.
individual choice
exchange rate
aggregate supply curve
depression