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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. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
microeconomics
elastic demand
consumer income rise
substitution effect
2. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
monetary policy
market economy
rule of 70
3. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
cyclical unemployment
trough
complimentary goods
4. 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.
monopoly
demand curve shifts
resource
cyclical unemployment
5. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
expansionary monetary policy
interest
demand schedule
total revenue
6. A bad depressingly prolonged recession in economic activity.
oligopoly
complimentary goods
demand curve shifts
depression
7. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
economic aggregates
opportunity cost
neutral good
movement along a demand curve
8. The cost of something in terms of what one must give up to get it.
opportunity cost
changes in consumer expectations
inverse relationship
entrepreneurship
9. 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.
business cycle
disposable personal income
A decrease in TR following an increase in price = elastic demand
stagflation
10. The price of a domestic currency in terms of a foreign currency.
trough
exchange rate
trade surplus
susbtitute goods
11. A relationship between two factors in which the factors move in the same direction.
direct relationship
complimentary goods
entrepreneurship
hyperinflation
12. 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.
fiscal policy
complimentary goods
demand schedule
neutral good
13. Rising prices - across the board.
rule of 70
inflation
tariff
consumption expenditures
14. The payment that capital receives in the factor market.
inferior good
market supply curve
interest
depression
15. When the percent of change in the quantity demanded equals the percent of change in price.
marginal revenue
demand curve shifts
unit elastic
cost-push inflation
16. The deliberate control of the money supply by the Federal government.
inverse relationship
demand-pull inflation
monetary policy
trade surplus
17. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
susbtitute goods
expenditure approach
trade deficit
expansion
18. A special tax imposed on imported goods.
inelastic
marginal propensity to consume (MPC)
tariff
simple money multiplier
19. 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.
law of supply
inflation
consumer surplus
required reserve ratio (RRR)
20. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
money multiplier
required reserve ratio (RRR)
perfectly elastic
simple money multiplier
21. 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.
labor force
economic aggregates
demand
cyclical unemployment
22. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
frictional unemployment
Gross Domestic Product
Phillips curve
demand curve
23. Significantly responsive to a change in price.
hidden unemployment
elastic
trough
elastic demand
24. The amount of a good actually sold.
elastic
quantity exchanged
perfectly elastic
consumer good
25. 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
demand elasticity
opportunity cost
recession
26. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
demand curve
law of demand
direct relationship
27. Long- run aggregate supply curve
LRAS curv
resource
government expenditures
consumer income rise
28. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
depression
trade surplus
Marginal Propensity to Save (MPS)
structural unemployment
29. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
peak
disposable personal income
scarce
fiscal policy
30. A shift of the demand curve resulting from a change in consumer taste and preferences.
recession
consumer taste and preferences
demand-pull inflation
inferior good
31. The willingness and ability of buyers to purchase a good or service.
demand
investment expenditures
inelastic
expansion
32. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
SRAS curve
diminishing marginal utility
depreciation
tariff
33. 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
movement along a demand curve
marginal propensity to consume (MPC)
consumer surplus
unemployed
34. The study of scarcity and choice.
business cycles
unemployment rate
economics
required reserve ratio (RRR)
35. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
Gross National Product
land
price ceiling
depression
36. 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.
oligopoly
recession
government expenditures
Marginal Propensity to Save (MPS)
37. Anything that shows the economy as a whole.
depression
economic aggregates
labor force
economics
38. The effort of workers.
A decrease in TR following an increase in price = elastic demand
cost-push inflation
Labor
frictional unemployment
39. The highest point of a business cycle.
peak
government expenditures
complimentary goods
susbtitute goods
40. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
rule of 70
inelastic demand
expansionary monetary policy
national economic accounts
41. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount
expansionary monetary policy
business cycles
command economy
purchasing power
42. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
demand
consumer good
monetary policy
changes in consumer expectations
43. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
exchange rate
number of composition of consumers
business cycle
scarcity
44. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
diminishing marginal utility
aggregate demand curve
total revenue
45. 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.
quantity exchanged
money multiplier
hyperinflation
demand
46. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
depreciation
demand curve
economic aggregates
47. Real cost of an item is its opportunity cost.
marginal revenue
opportunity cost
price index
market demand curve
48. Restrictions on the quantity of a good that can be imported
quantity exchanged
import quotas
government expenditures
demand elasticity
49. 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
real GDP
market supply curve
unemployed
50. (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.
scarce
expansion
fiscal policy
number of composition of consumers