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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 shift of the demand curve resulting from a change in consumer taste and preferences.
expansionary fiscal policy
trough
consumer taste and preferences
demand schedule
2. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
opportunity cost
perfectly elastic
A decrease in TR following an increase in price = elastic demand
normal good
3. 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
elastic demand
consumer taste and preferences
nominal GDP
structural unemployment
4. 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
law of demand
oligopoly
nominal GDP
Gross National Product
5. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
SRAS curve
economic aggregates
consumer surplus
expenditure approach
6. (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.
labor force
law of demand
number of composition of consumers
Gross National Product
7. 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.
money multiplier
microeconomics
opportunity cost
consumer income rise
8. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
inelastic demand
changes in consumer expectations
national income (NI)
inelastic
9. The proportion of each additional dollar of income that is saved.
money multiplier
Marginal Propensity to Save (MPS)
market equilibrium
government expenditures
10. 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
national economic accounts
substitution effect
market equilibrium
real GDP
11. The income earned by households and profits earned by firms after subtracting.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
national income (NI)
Phillips curve
trough
12. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc
trade deficit
unemployed
hyperinflation
inelastic demand
13. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
recession
susbtitute goods
trade deficit
interest
14. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
opportunity cost
trade surplus
depression
frictional unemployment
15. 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.
oligopoly
stagflation
law of demand
consumption expenditures
16. Rising prices - across the board.
Gross National Product
money multiplier
monopoly
inflation
17. The highest point of a business cycle.
price index
law of demand
peak
import quotas
18. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
cyclical unemployment
consumer good
money multiplier
national economic accounts
19. The deliberate control of the money supply by the Federal government.
command economy
monetary policy
scarce
change in quantity demanded
20. The dollar value of production within a nation's border.
aggregate demand curve
marginal revenue
monopoly
Gross Domestic Product
21. 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).
exchange rate
diminishing marginal utility
aggregate supply curve
cost-push inflation
22. 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.
demand-pull inflation
stagflation
demand schedule
A decrease in TR following an increase in price = elastic demand
23. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
complimentary goods
tariff
entrepreneurship
scarce
24. The dollar value of goods and services sold to governments.
government expenditures
consumption expenditures
consumer taste and preferences
quantity exchanged
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.
demand schedule
labor force
opportunity cost
consumer income rise
26. Anything that shows the economy as a whole.
economic aggregates
demand schedule
structural unemployment
hidden unemployment
27. 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.
trade surplus
individual choice
oligopoly
law of demand
28. An increase or decrease in consumer income will cause a shift in the Demand Curve.
labor force
law of demand
market demand curve
consumer good
29. 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.
law of demand
depression
A decrease in TR following an increase in price = elastic demand
labor force
30. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
complimentary goods
stagflation
business cycles
31. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
substitution effect
consumer taste and preferences
consumer income rise
demand elasticity
32. The price of a domestic currency in terms of a foreign currency.
exchange rate
consumer surplus
law of demand
demand schedule
33. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
market equilibrium
elastic
recession
Marginal Propensity to Save (MPS)
34. Not significantly responsive to changes in price.
inelastic
aggregate demand curve
trough
national economic accounts
35. Anything that can be used to produce something else
resource
price index
demand
neutral good
36. Restrictions on the quantity of a good that can be imported
land
simple money multiplier
expansion
import quotas
37. An industry structure in which there is only one seller for a product.
hyperinflation
elastic
monopoly
inferior good
38. A special tax imposed on imported goods.
LRAS curv
demand curve shifts
price ceiling
tariff
39. Expenditure by businesses on plant and equipment and the change in business invention.
movement along a demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
change in quantity demanded
investment expenditures
40. 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.
inelastic
recession
structural unemployment
scarcity
41. 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
structural unemployment
law of demand
consumer taste and preferences
42. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
Gross National Product
hidden unemployment
inelastic demand
43. The amount of money available to consumers to purchase goods and services.
purchasing power
trough
law of supply
consumption expenditures
44. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
demand curve
rule of 70
fiscal policy
scarcity
45. When the percent of change in the quantity demanded equals the percent of change in price.
scarcity
unit elastic
perfectly elastic
unemployed
46. An increase in the price level
inflation
national income (NI)
government expenditures
substitution effect
47. 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.
required reserve ratio (RRR)
inelastic demand
hidden unemployment
microeconomics
48. Short-run aggregate supply curve
inelastic
SRAS curve
inferior good
depression
49. Decisions by individuals about what to do and what not to do.
unemployment rate
individual choice
unemployed
monetary policy
50. The transition point between economic recession and recovery.
trough
trade surplus
national income (NI)
demand curve