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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. 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)
opportunity cost
market economy
monetary policy
2. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
command economy
land
law of demand
change in quantity demanded
3. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
susbtitute goods
neutral good
exchange rate
4. Rising prices - across the board.
national economic accounts
law of demand
opportunity cost
inflation
5. 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.
trough
land
complimentary goods
demand-pull inflation
6. The income earned by households and profits earned by firms after subtracting.
labor force
expansion
monetary policy
national income (NI)
7. Significantly responsive to a change in price.
elastic
interest
susbtitute goods
rule of 70
8. 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
trough
elastic
import quotas
9. 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.
price ceiling
changes in consumer expectations
command economy
inferior good
10. The dollar value of production within a nation's border.
unemployed
quantity exchanged
Gross Domestic Product
entrepreneurship
11. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expansion
market supply curve
rule of 70
12. (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.
number of composition of consumers
depreciation
microeconomics
rule of 70
13. Restrictions on the quantity of a good that can be imported
import quotas
stagflation
peak
exchange rate
14. The amount of money available to consumers to purchase goods and services.
inflation
purchasing power
market supply curve
normal good
15. 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.
investment expenditures
inelastic demand
changes in consumer expectations
Marginal Propensity to Save (MPS)
16. The dollar value of goods and services sold to governments.
economics
disposable personal income
microeconomics
government expenditures
17. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
labor force
monetary policy
market demand curve
18. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
consumer surplus
cyclical unemployment
interest
19. 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.
susbtitute goods
complimentary goods
market demand curve
oligopoly
20. The cost of something in terms of what one must give up to get it.
fiscal policy
diminishing marginal utility
economic aggregates
opportunity cost
21. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
demand
unemployed
consumer taste and preferences
22. 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
oligopoly
unemployment rate
depression
real GDP
23. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
susbtitute goods
trade surplus
substitution effect
unit elastic
24. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc
rule of 70
frictional unemployment
law of demand
inflation
25. 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.
trade deficit
scarcity
demand schedule
changes in consumer expectations
26. 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?
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unemployment rate
demand elasticity
trade surplus
27. 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.
scarce
structural unemployment
Gross Domestic Product
LRAS curv
28. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
rule of 70
marginal propensity to consume (MPC)
consumption expenditures
changes in consumer expectations
29. Goods that go together - if price ? the demand for both that good and complimentary good ?.
expansionary fiscal policy
complimentary goods
nominal GDP
inflation
30. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
interest
resource
trade deficit
scarcity
31. The deliberate control of the money supply by the Federal government.
inverse relationship
fiscal policy
susbtitute goods
monetary policy
32. 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.
hyperinflation
investment expenditures
tariff
hidden unemployment
33. A special tax imposed on imported goods.
Gross National Product
interest
individual choice
tariff
34. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
cost-push inflation
business cycle
market equilibrium
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.
demand schedule
expenditure approach
tariff
stagflation
36. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
changes in consumer expectations
demand schedule
expansion
national economic accounts
37. 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
susbtitute goods
resource
unemployment rate
38. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
scarce
trough
depreciation
demand curve
39. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
resource
expansionary fiscal policy
change in quantity demanded
land
40. Fluctuations in real GDP around the trend value; also called economic fluctuations.
opportunity cost
business cycles
susbtitute goods
unemployment rate
41. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
unit elastic
simple money multiplier
consumer surplus
law of demand
42. The willingness and ability of buyers to purchase a good or service.
macroeconomics
depreciation
real GDP
demand
43. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
Marginal Propensity to Save (MPS)
susbtitute goods
recession
law of supply
44. The amount of a good actually sold.
quantity exchanged
economics
price index
recession
45. Long- run aggregate supply curve
land
market equilibrium
LRAS curv
demand elasticity
46. Anything that shows the economy as a whole.
law of demand
resource
depression
economic aggregates
47. The highest point of a business cycle.
trough
inelastic
peak
inferior good
48. Short-run aggregate supply curve
aggregate supply curve
SRAS curve
Gross National Product
macroeconomics
49. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
Marginal Propensity to Save (MPS)
demand
law of demand
50. 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
LRAS curv
market demand curve
unit elastic