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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. 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
macroeconomics
monopoly
demand curve shifts
real GDP
2. The effort of workers.
Labor
movement along a demand curve
changes in consumer expectations
Gross Domestic Product
3. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
demand
unemployed
scarce
Gross Domestic Product
4. The study of scarcity and choice.
economics
depreciation
national economic accounts
recession
5. 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
law of supply
inferior good
nominal GDP
diminishing marginal utility
6. 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.
elastic demand
changes in consumer expectations
diminishing marginal utility
Gross National Product
7. Restrictions on the quantity of a good that can be imported
expenditure approach
diminishing marginal utility
perfectly elastic
import quotas
8. 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.
market equilibrium
trough
hyperinflation
consumer taste and preferences
9. 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.
change in quantity demanded
A decrease in TR following an increase in price = elastic demand
command economy
structural unemployment
10. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
Marginal Propensity to Save (MPS)
frictional unemployment
consumption expenditures
11. A measure of the price level - or the average level of prices.
labor force
price index
economic aggregates
demand elasticity
12. 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.
import quotas
number of composition of consumers
simple money multiplier
hidden unemployment
13. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
demand
aggregate supply curve
macroeconomics
expenditure approach
14. 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).
perfectly elastic
SRAS curve
unemployment rate
quantity exchanged
15. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
total revenue
trade surplus
land
monopoly
16. Not significantly responsive to changes in price.
economic aggregates
perfectly elastic
inelastic
monetary policy
17. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
expansionary fiscal policy
land
demand
number of composition of consumers
18. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
number of composition of consumers
required reserve ratio (RRR)
inelastic
cyclical unemployment
19. 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
interest
Marginal Propensity to Save (MPS)
marginal revenue
20. The proportion of each additional dollar of income that will go toward consumption expenditures.
trade surplus
Phillips curve
marginal propensity to consume (MPC)
national economic accounts
21. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
exchange rate
business cycle
expenditure approach
aggregate demand curve
22. 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
real GDP
expansionary monetary policy
diminishing marginal utility
Gross Domestic Product
23. A special tax imposed on imported goods.
trough
structural unemployment
tariff
price index
24. Period in which a recession becomes prolonged and deep - involving high unemployment.
trade deficit
depression
labor force
trough
25. The dollar value of goods and services sold to governments.
monopoly
government expenditures
total revenue
inverse relationship
26. Expenditure by businesses on plant and equipment and the change in business invention.
LRAS curv
national income (NI)
market demand curve
investment expenditures
27. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
diminishing marginal utility
depreciation
consumer income rise
market supply curve
28. The transition point between economic recession and recovery.
demand schedule
Marginal Propensity to Save (MPS)
depression
trough
29. A Latin phrase meaning 'all things constant.'
diminishing marginal utility
law of demand
hyperinflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
30. Rising prices - across the board.
Gross National Product
inflation
nominal GDP
neutral good
31. 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
consumer income rise
unemployed
depression
32. 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.
perfectly elastic
simple money multiplier
law of supply
recession
33. The willingness and ability of buyers to purchase a good or service.
price ceiling
demand
inferior good
aggregate demand curve
34. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
land
unemployment rate
national economic accounts
35. The amount of money available to consumers to purchase goods and services.
purchasing power
Gross Domestic Product
inelastic demand
Marginal Propensity to Save (MPS)
36. Real cost of an item is its opportunity cost.
fiscal policy
opportunity cost
expansionary fiscal policy
economic aggregates
37. 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
price floor
depreciation
38. Anything that shows the economy as a whole.
economic aggregates
macroeconomics
demand curve
elastic
39. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
disposable personal income
individual choice
peak
demand curve
40. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
command economy
depreciation
microeconomics
41. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
change in quantity demanded
complimentary goods
simple money multiplier
inverse relationship
42. 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?
marginal revenue
frictional unemployment
quantity exchanged
demand elasticity
43. An industry structure in which there is only one seller for a product.
inelastic demand
individual choice
peak
monopoly
44. The sum of all the quantities of a good supplies by all producers at each price.
inflation
market supply curve
expansionary monetary policy
disposable personal income
45. Goods that go together - if price ? the demand for both that good and complimentary good ?.
expansion
quantity exchanged
susbtitute goods
complimentary goods
46. 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.
neutral good
monopoly
tariff
demand curve shifts
47. Long- run aggregate supply curve
LRAS curv
expansionary monetary policy
resource
aggregate supply curve
48. 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.
LRAS curv
microeconomics
market economy
consumer taste and preferences
49. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
change in quantity demanded
depreciation
depression
trade deficit
50. 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.
depreciation
Marginal Propensity to Save (MPS)
disposable personal income
inferior good