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Test your basic knowledge |
AP Macroeconomics
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Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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.
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 graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
simple money multiplier
real GDP
nominal GDP
demand curve
2. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
hyperinflation
depreciation
normal good
trade surplus
3. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
nominal GDP
total revenue
required reserve ratio (RRR)
Gross Domestic Product
4. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
investment expenditures
consumer taste and preferences
inelastic demand
5. Price control set when the market price is believed to be too low.
business cycle
price floor
neutral good
perfectly elastic
6. 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.
trough
price floor
microeconomics
market equilibrium
7. Decisions by individuals about what to do and what not to do.
individual choice
Gross National Product
fiscal policy
simple money multiplier
8. 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.
law of demand
national economic accounts
hidden unemployment
investment expenditures
9. The addition to total revenue created by selling one additional unit of ouput.
interest
marginal revenue
oligopoly
inelastic
10. 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.
price index
unit elastic
susbtitute goods
aggregate demand curve
11. A special tax imposed on imported goods.
demand-pull inflation
LRAS curv
economic aggregates
tariff
12. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
inferior good
consumer good
Phillips curve
purchasing power
13. Restrictions on the quantity of a good that can be imported
market supply curve
import quotas
scarcity
perfectly elastic
14. The proportion of each additional dollar of income that will go toward consumption expenditures.
Gross National Product
complimentary goods
marginal propensity to consume (MPC)
hyperinflation
15. 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.
disposable personal income
direct relationship
hyperinflation
scarcity
16. 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.
inflation
simple money multiplier
elastic demand
command economy
17. Consumer income rise - demand will rise.
entrepreneurship
simple money multiplier
neutral good
diminishing marginal utility
18. Goods that go together - if price ? the demand for both that good and complimentary good ?.
market economy
aggregate demand curve
complimentary goods
marginal revenue
19. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
depression
macroeconomics
marginal revenue
20. 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?
direct relationship
demand elasticity
import quotas
depreciation
21. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
business cycle
inflation
money multiplier
movement along a demand curve
22. 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.
demand curve
inelastic demand
Gross Domestic Product
scarcity
23. 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.
rule of 70
macroeconomics
changes in consumer expectations
simple money multiplier
24. Not significantly responsive to changes in price.
peak
inelastic
expansion
land
25. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
direct relationship
consumer taste and preferences
normal good
demand-pull inflation
26. 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
oligopoly
aggregate demand curve
individual choice
27. The payment that capital receives in the factor market.
peak
Labor
inferior good
interest
28. A shift of the demand curve resulting from a change in consumer taste and preferences.
LRAS curv
tariff
inverse relationship
consumer taste and preferences
29. A relationship between two factors in which the factors move in the same direction.
direct relationship
change in quantity demanded
hidden unemployment
interest
30. 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
demand
expansionary monetary policy
command economy
economic aggregates
31. 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.
expansion
trough
demand-pull inflation
depreciation
32. Price control set when the market price is believed to be too high.
price ceiling
changes in consumer expectations
opportunity cost
consumer surplus
33. The lowest point of a business cycle
unemployment rate
purchasing power
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
trough
34. Fluctuations in real GDP around the trend value; also called economic fluctuations.
rule of 70
substitution effect
market equilibrium
business cycles
35. 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.
real GDP
trough
stagflation
marginal propensity to consume (MPC)
36. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
hyperinflation
substitution effect
price index
required reserve ratio (RRR)
37. The effort of workers.
stagflation
business cycle
demand elasticity
Labor
38. A curve defining the relationship between real production and price level.
cyclical unemployment
unemployment rate
expansionary fiscal policy
aggregate supply curve
39. Long- run aggregate supply curve
LRAS curv
elastic demand
elastic
consumption expenditures
40. 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.
frictional unemployment
unemployed
demand schedule
unit elastic
41. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
purchasing power
changes in consumer expectations
movement along a demand curve
depreciation
42. A Latin phrase meaning 'all things constant.'
hyperinflation
disposable personal income
demand elasticity
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
43. A bad depressingly prolonged recession in economic activity.
law of demand
depression
A decrease in TR following an increase in price = elastic demand
nominal GDP
44. The cost of something in terms of what one must give up to get it.
SRAS curve
recession
depression
opportunity cost
45. The long-run pattern of growth and recession.
consumer taste and preferences
business cycle
opportunity cost
frictional unemployment
46. A measure of the price level - or the average level of prices.
monopoly
price index
change in quantity demanded
business cycle
47. The dollar value of all the goods and services sold to house holds.
demand-pull inflation
consumption expenditures
market economy
consumer surplus
48. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
scarcity
Marginal Propensity to Save (MPS)
law of demand
49. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
rule of 70
law of supply
cyclical unemployment
nominal GDP
50. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
purchasing power
elastic
expansion
demand-pull inflation
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