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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. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
unemployed
direct relationship
A decrease in TR following an increase in price = elastic demand
2. 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.
national economic accounts
demand-pull inflation
movement along a demand curve
law of demand
3. 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
expansionary monetary policy
economic aggregates
number of composition of consumers
rule of 70
4. Price control set when the market price is believed to be too low.
real GDP
unit elastic
price floor
total revenue
5. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
law of demand
scarce
cyclical unemployment
nominal GDP
6. Short-run aggregate supply curve
SRAS curve
Phillips curve
law of demand
opportunity cost
7. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
inferior good
perfectly elastic
national economic accounts
change in quantity demanded
8. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
fiscal policy
consumer surplus
demand-pull inflation
market economy
9. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
macroeconomics
Phillips curve
consumption expenditures
command economy
10. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
trade surplus
entrepreneurship
recession
tariff
11. Real cost of an item is its opportunity cost.
consumer taste and preferences
neutral good
A decrease in TR following an increase in price = elastic demand
opportunity cost
12. Not significantly responsive to changes in price.
consumption expenditures
inelastic
inflation
investment expenditures
13. 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.
scarcity
perfectly elastic
number of composition of consumers
A decrease in TR following an increase in price = elastic demand
14. The income earned by households and profits earned by firms after subtracting.
trade surplus
national income (NI)
inelastic
tariff
15. 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.
entrepreneurship
oligopoly
national income (NI)
purchasing power
16. 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
SRAS curve
real GDP
depression
land
17. 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.
LRAS curv
demand schedule
economics
national economic accounts
18. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
inferior good
business cycle
market equilibrium
consumer income rise
19. The effort of workers.
Labor
trough
peak
aggregate supply curve
20. 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).
inverse relationship
purchasing power
unemployment rate
aggregate supply curve
21. Long- run aggregate supply curve
investment expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market demand curve
LRAS curv
22. Expenditure by businesses on plant and equipment and the change in business invention.
diminishing marginal utility
direct relationship
investment expenditures
depression
23. Anything that can be used to produce something else
market economy
economics
unit elastic
resource
24. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
economics
opportunity cost
direct relationship
fiscal policy
25. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
elastic demand
real GDP
inverse relationship
entrepreneurship
26. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
command economy
expenditure approach
demand elasticity
27. A special tax imposed on imported goods.
tariff
opportunity cost
stagflation
inelastic demand
28. Price control set when the market price is believed to be too high.
land
national income (NI)
Gross Domestic Product
price ceiling
29. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
inelastic
Marginal Propensity to Save (MPS)
monetary policy
30. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
trough
resource
demand elasticity
scarcity
31. Decisions by individuals about what to do and what not to do.
individual choice
movement along a demand curve
law of supply
interest
32. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
market supply curve
price index
disposable personal income
law of demand
33. The lowest point of a business cycle
trough
economics
money multiplier
aggregate supply curve
34. 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
trade surplus
inflation
oligopoly
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.
money multiplier
trade surplus
trough
stagflation
36. A bad depressingly prolonged recession in economic activity.
depression
demand curve
Gross Domestic Product
macroeconomics
37. A relationship between two factors in which the factors move in the same direction.
SRAS curve
perfectly elastic
movement along a demand curve
direct relationship
38. Restrictions on the quantity of a good that can be imported
labor force
opportunity cost
import quotas
expansion
39. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
direct relationship
business cycle
normal good
trade deficit
40. Significantly responsive to a change in price.
demand elasticity
elastic
movement along a demand curve
nominal GDP
41. The transition point between economic recession and recovery.
peak
SRAS curve
trough
Phillips curve
42. 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).
consumer good
demand curve
Gross Domestic Product
market demand curve
43. 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.
demand curve shifts
required reserve ratio (RRR)
money multiplier
national economic accounts
44. Rising prices - across the board.
hyperinflation
inflation
market economy
depression
45. The proportion of each additional dollar of income that is saved.
unemployment rate
interest
Marginal Propensity to Save (MPS)
land
46. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
demand
rule of 70
demand schedule
required reserve ratio (RRR)
47. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
individual choice
law of supply
national economic accounts
Gross Domestic Product
48. The dollar value of all the goods and services sold to house holds.
economic aggregates
law of demand
consumption expenditures
opportunity cost
49. 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.
number of composition of consumers
interest
Labor
frictional unemployment
50. The dollar value of production by a country's citizens.
Gross National Product
import quotas
susbtitute goods
demand-pull inflation