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. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
labor force
fiscal policy
trough
hyperinflation
2. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
inflation
demand elasticity
land
market supply curve
3. The dollar value of goods and services sold to governments.
government expenditures
individual choice
nominal GDP
oligopoly
4. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
Gross Domestic Product
expansion
business cycle
simple money multiplier
5. The proportion of each additional dollar of income that will go toward consumption expenditures.
stagflation
marginal propensity to consume (MPC)
change in quantity demanded
inferior good
6. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
interest
market economy
consumer taste and preferences
cyclical unemployment
7. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
tariff
inverse relationship
normal good
8. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
economics
perfectly elastic
market economy
scarcity
9. Long- run aggregate supply curve
LRAS curv
market equilibrium
hidden unemployment
inverse relationship
10. 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.
law of supply
frictional unemployment
elastic demand
cyclical unemployment
11. The sum of all the quantities of a good supplies by all producers at each price.
change in quantity demanded
investment expenditures
market supply curve
trough
12. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
expansionary fiscal policy
national economic accounts
import quotas
complimentary goods
13. A curve defining the relationship between real production and price level.
expansion
land
inverse relationship
aggregate supply curve
14. 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
Phillips curve
diminishing marginal utility
oligopoly
15. An increase in the price level
normal good
individual choice
inflation
hidden unemployment
16. (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.
tariff
monetary policy
rule of 70
number of composition of consumers
17. 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.
interest
demand-pull inflation
unemployed
fiscal policy
18. Anything that can be used to produce something else
market supply curve
elastic demand
resource
simple money multiplier
19. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
economics
consumer taste and preferences
movement along a demand curve
entrepreneurship
20. The dollar value of production by a country's citizens.
market demand curve
structural unemployment
expansionary monetary policy
Gross National Product
21. 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.
elastic demand
trough
simple money multiplier
opportunity cost
22. 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
direct relationship
monetary policy
nominal GDP
real GDP
23. The dollar value of production within a nation's border.
number of composition of consumers
substitution effect
Gross Domestic Product
elastic
24. The willingness and ability of buyers to purchase a good or service.
demand
perfectly elastic
law of demand
aggregate supply curve
25. 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).
unemployment rate
SRAS curve
demand elasticity
trade deficit
26. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
expansion
tariff
elastic demand
27. 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.
movement along a demand curve
SRAS curve
market economy
aggregate demand curve
28. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
national income (NI)
inflation
nominal GDP
29. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
tariff
aggregate supply curve
opportunity cost
30. The dollar value of all the goods and services sold to house holds.
SRAS curve
Labor
consumption expenditures
consumer taste and preferences
31. 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.
normal good
demand
hyperinflation
demand curve shifts
32. The payment that capital receives in the factor market.
market economy
direct relationship
labor force
interest
33. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
monetary policy
tariff
depreciation
34. A bad depressingly prolonged recession in economic activity.
depression
demand schedule
fiscal policy
cost-push inflation
35. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
inferior good
aggregate supply curve
Phillips curve
labor force
36. 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.
cost-push inflation
frictional unemployment
labor force
LRAS curv
37. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
price floor
depression
monopoly
expenditure approach
38. The price of a domestic currency in terms of a foreign currency.
SRAS curve
substitution effect
inferior good
exchange rate
39. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.
A decrease in TR following an increase in price = elastic demand
demand elasticity
perfectly elastic
consumption expenditures
40. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
inelastic
trough
expenditure approach
total revenue
41. 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.
normal good
oligopoly
unemployment rate
market economy
42. A shift of the demand curve resulting from a change in consumer taste and preferences.
structural unemployment
consumer taste and preferences
inelastic demand
rule of 70
43. Decisions by individuals about what to do and what not to do.
marginal propensity to consume (MPC)
inelastic
market demand curve
individual choice
44. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
inferior good
diminishing marginal utility
Labor
business cycles
45. 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).
trough
expansionary fiscal policy
demand curve
import quotas
46. The amount of a good actually sold.
interest
quantity exchanged
demand-pull inflation
marginal propensity to consume (MPC)
47. The income earned by households and profits earned by firms after subtracting.
national income (NI)
trough
oligopoly
land
48. The lowest point of a business cycle
demand schedule
quantity exchanged
trough
interest
49. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
opportunity cost
macroeconomics
monetary policy
inelastic demand
50. 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.
inferior good
disposable personal income
opportunity cost
demand schedule