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. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
business cycles
Gross Domestic Product
demand-pull inflation
cyclical unemployment
2. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
market supply curve
money multiplier
government expenditures
elastic
3. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
marginal propensity to consume (MPC)
inflation
demand curve shifts
4. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
Gross National Product
scarcity
recession
national income (NI)
5. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
command economy
Phillips curve
government expenditures
exchange rate
6. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
entrepreneurship
demand curve
aggregate supply curve
inflation
7. 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.
government expenditures
A decrease in TR following an increase in price = elastic demand
price ceiling
elastic demand
8. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
required reserve ratio (RRR)
law of supply
scarcity
macroeconomics
9. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer taste and preferences
neutral good
Phillips curve
10. Price control set when the market price is believed to be too high.
changes in consumer expectations
diminishing marginal utility
economics
price ceiling
11. An increase in the price level
tariff
money multiplier
elastic demand
inflation
12. The payment that capital receives in the factor market.
quantity exchanged
market demand curve
cyclical unemployment
interest
13. The amount of a good actually sold.
quantity exchanged
expenditure approach
normal good
real GDP
14. The lowest point of a business cycle
trough
demand curve shifts
money multiplier
depression
15. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
law of supply
marginal revenue
hyperinflation
movement along a demand curve
16. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
labor force
normal good
changes in consumer expectations
A decrease in TR following an increase in price = elastic demand
17. 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.
government expenditures
microeconomics
interest
inferior good
18. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
structural unemployment
aggregate supply curve
Labor
19. Long- run aggregate supply curve
LRAS curv
consumer taste and preferences
structural unemployment
elastic demand
20. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
consumption expenditures
market equilibrium
required reserve ratio (RRR)
cyclical unemployment
21. (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 elasticity
Gross National Product
number of composition of consumers
monetary policy
22. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
import quotas
neutral good
scarcity
demand curve
23. The dollar value of goods and services sold to governments.
business cycles
government expenditures
unemployed
susbtitute goods
24. The income of households after taxes have been paid
disposable personal income
inflation
business cycle
movement along a demand curve
25. The sum of all the quantities of a good supplies by all producers at each price.
cost-push inflation
interest
movement along a demand curve
market supply curve
26. Fluctuations in real GDP around the trend value; also called economic fluctuations.
opportunity cost
demand
consumer income rise
business cycles
27. 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.
unemployed
required reserve ratio (RRR)
tariff
labor force
28. 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.
labor force
macroeconomics
change in quantity demanded
scarcity
29. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
trough
normal good
national economic accounts
demand curve shifts
30. Price control set when the market price is believed to be too low.
number of composition of consumers
individual choice
unit elastic
price floor
31. The income earned by households and profits earned by firms after subtracting.
demand elasticity
national income (NI)
simple money multiplier
market equilibrium
32. The dollar value of production by a country's citizens.
Gross National Product
number of composition of consumers
inflation
unit elastic
33. Not significantly responsive to changes in price.
inelastic
depression
entrepreneurship
inferior good
34. 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).
inelastic demand
depression
demand curve shifts
unemployment rate
35. A relationship between two factors in which the factors move in the same direction.
direct relationship
Gross Domestic Product
demand-pull inflation
frictional unemployment
36. A special tax imposed on imported goods.
expenditure approach
tariff
oligopoly
number of composition of consumers
37. Rising prices - across the board.
inflation
SRAS curve
microeconomics
price ceiling
38. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
Gross National Product
market economy
inverse relationship
law of demand
39. Short-run aggregate supply curve
expansion
simple money multiplier
SRAS curve
diminishing marginal utility
40. The highest point of a business cycle.
inelastic
opportunity cost
peak
price floor
41. Expenditure by businesses on plant and equipment and the change in business invention.
unemployment rate
investment expenditures
economics
required reserve ratio (RRR)
42. 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)
demand curve shifts
import quotas
investment expenditures
43. 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.
Gross Domestic Product
demand schedule
consumer surplus
A decrease in TR following an increase in price = elastic demand
44. 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
individual choice
consumer surplus
nominal GDP
opportunity cost
45. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
expenditure approach
frictional unemployment
fiscal policy
46. Anything that can be used to produce something else
unemployed
consumer income rise
LRAS curv
resource
47. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
Gross Domestic Product
A decrease in TR following an increase in price = elastic demand
price floor
fiscal policy
48. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
money multiplier
depreciation
recession
unit elastic
49. Government officials make decisions about economy.
monetary policy
command economy
import quotas
price index
50. An industry structure in which there is only one seller for a product.
simple money multiplier
consumer surplus
monopoly
trough