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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. Anything that can be used to produce something else
national income (NI)
market supply curve
resource
marginal revenue
2. Consumer income rise - demand will rise.
trough
neutral good
expansion
price ceiling
3. A special tax imposed on imported goods.
tariff
A decrease in TR following an increase in price = elastic demand
susbtitute goods
unemployed
4. The dollar value of goods and services sold to governments.
government expenditures
demand curve
business cycle
frictional unemployment
5. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
demand curve shifts
consumer surplus
trade deficit
inelastic
6. The highest point of a business cycle.
changes in consumer expectations
inelastic demand
peak
cost-push inflation
7. 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).
inverse relationship
market equilibrium
trade surplus
expansionary fiscal policy
8. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
disposable personal income
Marginal Propensity to Save (MPS)
individual choice
9. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
unit elastic
cyclical unemployment
demand schedule
scarce
10. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
land
A decrease in TR following an increase in price = elastic demand
total revenue
national income (NI)
11. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
unemployed
consumer surplus
microeconomics
money multiplier
12. The amount of a good actually sold.
quantity exchanged
monetary policy
substitution effect
government expenditures
13. 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
exchange rate
consumer taste and preferences
depreciation
14. 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.
real GDP
national economic accounts
change in quantity demanded
demand schedule
15. 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
price floor
market supply curve
direct relationship
16. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
market demand curve
complimentary goods
hyperinflation
perfectly elastic
17. 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.
depreciation
inflation
consumer good
frictional unemployment
18. The sum of all the quantities of a good supplies by all producers at each price.
inflation
demand schedule
microeconomics
market supply curve
19. The amount of money available to consumers to purchase goods and services.
government expenditures
law of demand
inelastic
purchasing power
20. 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.
perfectly elastic
labor force
trade deficit
Gross National Product
21. When the percent of change in the quantity demanded equals the percent of change in price.
opportunity cost
market demand curve
economics
unit elastic
22. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
tariff
land
labor force
law of demand
23. 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
marginal revenue
consumer income rise
unemployed
business cycle
24. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
demand
economic aggregates
trade surplus
stagflation
25. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.
diminishing marginal utility
demand curve shifts
entrepreneurship
nominal GDP
26. Expenditure by businesses on plant and equipment and the change in business invention.
demand elasticity
market supply curve
investment expenditures
purchasing power
27. 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.
hidden unemployment
structural unemployment
cost-push inflation
labor force
28. 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.
diminishing marginal utility
trough
inelastic demand
opportunity cost
29. Price control set when the market price is believed to be too low.
elastic demand
price floor
nominal GDP
quantity exchanged
30. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
demand-pull inflation
money multiplier
total revenue
scarce
31. A bad depressingly prolonged recession in economic activity.
depression
business cycles
opportunity cost
inverse relationship
32. (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
business cycle
normal good
command economy
33. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
money multiplier
diminishing marginal utility
total revenue
expansionary fiscal policy
34. Restrictions on the quantity of a good that can be imported
inflation
resource
Phillips curve
import quotas
35. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
demand-pull inflation
national income (NI)
entrepreneurship
command economy
36. 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.
hyperinflation
macroeconomics
trough
economics
37. 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.
stagflation
LRAS curv
inelastic demand
Marginal Propensity to Save (MPS)
38. The proportion of each additional dollar of income that will go toward consumption expenditures.
Labor
marginal propensity to consume (MPC)
consumer income rise
unemployed
39. A relationship between two factors in which the factors move in the same direction.
labor force
unemployed
unit elastic
direct relationship
40. The study of scarcity and choice.
expansionary monetary policy
elastic
market equilibrium
economics
41. 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
market supply curve
expansionary monetary policy
LRAS curv
business cycles
42. Period in which a recession becomes prolonged and deep - involving high unemployment.
frictional unemployment
Marginal Propensity to Save (MPS)
marginal propensity to consume (MPC)
depression
43. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
inflation
interest
demand elasticity
macroeconomics
44. Price control set when the market price is believed to be too high.
price ceiling
import quotas
business cycles
demand-pull inflation
45. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
national economic accounts
market supply curve
law of demand
demand curve shifts
46. 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.
neutral good
simple money multiplier
consumer taste and preferences
expansion
47. 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.
consumption expenditures
structural unemployment
substitution effect
money multiplier
48. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
monopoly
scarcity
business cycle
Gross National Product
49. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expansionary monetary policy
expenditure approach
depression
direct relationship
50. 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.
aggregate demand curve
unemployed
quantity exchanged
national economic accounts