SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. The amount of a good actually sold.
quantity exchanged
opportunity cost
marginal propensity to consume (MPC)
demand-pull inflation
2. The dollar value of all the goods and services sold to house holds.
demand
entrepreneurship
quantity exchanged
consumption expenditures
3. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
inferior good
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
total revenue
4. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
demand schedule
expansion
interest
number of composition of consumers
5. The effort of workers.
inflation
Labor
diminishing marginal utility
opportunity cost
6. The income earned by households and profits earned by firms after subtracting.
direct relationship
demand curve shifts
national income (NI)
expansionary fiscal policy
7. The proportion of each additional dollar of income that is saved.
oligopoly
normal good
expansionary monetary policy
Marginal Propensity to Save (MPS)
8. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
unemployed
market supply curve
Gross National Product
scarce
9. Not significantly responsive to changes in price.
A decrease in TR following an increase in price = elastic demand
inelastic
LRAS curv
national income (NI)
10. 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.
national economic accounts
economic aggregates
fiscal policy
hyperinflation
11. 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
demand elasticity
LRAS curv
stagflation
nominal GDP
12. 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).
depression
government expenditures
cost-push inflation
market economy
13. The amount of money available to consumers to purchase goods and services.
purchasing power
oligopoly
marginal propensity to consume (MPC)
simple money multiplier
14. Anything that can be used to produce something else
susbtitute goods
frictional unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
resource
15. 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.
trough
inflation
labor force
total revenue
16. The income of households after taxes have been paid
market supply curve
consumer good
disposable personal income
cyclical unemployment
17. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
hidden unemployment
hyperinflation
money multiplier
neutral good
18. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand
movement along a demand curve
monopoly
diminishing marginal utility
19. 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.
unemployed
law of supply
demand schedule
depreciation
20. 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
real GDP
rule of 70
depreciation
expansion
21. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
peak
demand curve
consumer taste and preferences
change in quantity demanded
22. A relationship between two factors in which the factors move in the same direction.
demand curve
elastic demand
simple money multiplier
direct relationship
23. Price control set when the market price is believed to be too low.
price floor
marginal revenue
hyperinflation
national economic accounts
24. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
demand curve shifts
fiscal policy
inverse relationship
diminishing marginal utility
25. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
resource
nominal GDP
expansionary fiscal policy
26. Rising prices - across the board.
oligopoly
inflation
tariff
unemployed
27. A shift of the demand curve resulting from a change in consumer taste and preferences.
nominal GDP
LRAS curv
Labor
consumer taste and preferences
28. A special tax imposed on imported goods.
tariff
demand
diminishing marginal utility
elastic
29. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
elastic demand
expansionary monetary policy
expenditure approach
cost-push inflation
30. 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.
diminishing marginal utility
unit elastic
elastic demand
marginal revenue
31. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr
number of composition of consumers
real GDP
tariff
market equilibrium
32. When the percent of change in the quantity demanded equals the percent of change in price.
land
marginal revenue
depression
unit elastic
33. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
rule of 70
law of demand
hidden unemployment
34. Anything that shows the economy as a whole.
scarcity
unit elastic
economic aggregates
Marginal Propensity to Save (MPS)
35. Significantly responsive to a change in price.
trade surplus
fiscal policy
total revenue
elastic
36. The cost of something in terms of what one must give up to get it.
Labor
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
recession
37. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
business cycles
trade deficit
individual choice
38. (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.
demand-pull inflation
simple money multiplier
number of composition of consumers
change in quantity demanded
39. Government officials make decisions about economy.
cyclical unemployment
command economy
movement along a demand curve
change in quantity demanded
40. 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?
demand elasticity
unemployed
trade surplus
consumer surplus
41. 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.
business cycles
simple money multiplier
money multiplier
cyclical unemployment
42. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
depression
monetary policy
cyclical unemployment
market economy
43. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
demand
depression
consumer income rise
market demand curve
44. 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
exchange rate
structural unemployment
land
45. The dollar value of production within a nation's border.
Gross Domestic Product
required reserve ratio (RRR)
inflation
purchasing power
46. Price control set when the market price is believed to be too high.
price floor
demand
inferior good
price ceiling
47. Short-run aggregate supply curve
command economy
inelastic demand
peak
SRAS curve
48. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
susbtitute goods
law of supply
required reserve ratio (RRR)
cyclical unemployment
49. 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.
depreciation
consumer good
frictional unemployment
market supply curve
50. Fluctuations in real GDP around the trend value; also called economic fluctuations.
resource
recession
nominal GDP
business cycles