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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 way of measuring the GDP by adding up all spending on final goods and services during a given year.
consumer income rise
expansionary fiscal policy
unemployment rate
expenditure approach
2. 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.
market equilibrium
command economy
hidden unemployment
law of demand
3. 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?
consumption expenditures
demand elasticity
investment expenditures
consumer income rise
4. 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
exchange rate
expansion
market demand curve
nominal GDP
5. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
A decrease in TR following an increase in price = elastic demand
structural unemployment
inverse relationship
money multiplier
6. 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.
monetary policy
labor force
market supply curve
interest
7. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
neutral good
demand
elastic demand
8. The dollar value of production by a country's citizens.
structural unemployment
entrepreneurship
Gross National Product
price floor
9. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
unemployed
consumer income rise
complimentary goods
Gross Domestic Product
10. 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.
import quotas
market economy
aggregate demand curve
purchasing power
11. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
normal good
trade deficit
structural unemployment
demand-pull inflation
12. The proportion of each additional dollar of income that is saved.
government expenditures
expansionary fiscal policy
demand curve shifts
Marginal Propensity to Save (MPS)
13. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
SRAS curve
recession
money multiplier
14. Goods that go together - if price ? the demand for both that good and complimentary good ?.
elastic demand
stagflation
complimentary goods
resource
15. The effort of workers.
trough
trough
complimentary goods
Labor
16. The lowest point of a business cycle
marginal revenue
cost-push inflation
entrepreneurship
trough
17. 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.
market economy
consumption expenditures
Phillips curve
demand-pull inflation
18. The sum of all the quantities of a good supplies by all producers at each price.
inverse relationship
nominal GDP
market supply curve
depression
19. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
scarcity
demand-pull inflation
Gross Domestic Product
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).
opportunity cost
macroeconomics
unemployment rate
market demand curve
21. 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
susbtitute goods
government expenditures
rule of 70
trough
22. When the percent of change in the quantity demanded equals the percent of change in price.
consumer surplus
price floor
unit elastic
investment expenditures
23. 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.
complimentary goods
expenditure approach
inferior good
opportunity cost
24. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
expansionary monetary policy
neutral good
changes in consumer expectations
direct relationship
25. The payment that capital receives in the factor market.
entrepreneurship
interest
hidden unemployment
recession
26. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
market equilibrium
scarcity
national income (NI)
market economy
27. A Latin phrase meaning 'all things constant.'
consumer income rise
expenditure approach
economic aggregates
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
nominal GDP
movement along a demand curve
inflation
consumption expenditures
29. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
resource
normal good
command economy
neutral good
30. A relationship between two factors in which the factors move in the same direction.
aggregate supply curve
inflation
direct relationship
unit elastic
31. A curve defining the relationship between real production and price level.
land
consumption expenditures
aggregate supply curve
entrepreneurship
32. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
consumer taste and preferences
total revenue
business cycle
law of supply
33. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
opportunity cost
required reserve ratio (RRR)
monetary policy
land
34. The deliberate control of the money supply by the Federal government.
movement along a demand curve
individual choice
Gross National Product
monetary policy
35. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
change in quantity demanded
recession
perfectly elastic
hidden unemployment
36. Government officials make decisions about economy.
demand curve shifts
diminishing marginal utility
recession
command economy
37. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
opportunity cost
microeconomics
trade surplus
expansion
38. 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.
consumer good
business cycles
economics
change in quantity demanded
39. The long-run pattern of growth and recession.
Labor
change in quantity demanded
business cycle
law of demand
40. Not significantly responsive to changes in price.
law of demand
inelastic
consumer good
SRAS curve
41. 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.
number of composition of consumers
monetary policy
hyperinflation
depreciation
42. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
business cycles
marginal propensity to consume (MPC)
price index
law of demand
43. Rising prices - across the board.
microeconomics
macroeconomics
inflation
demand curve shifts
44. Significantly responsive to a change in price.
elastic
frictional unemployment
disposable personal income
consumer taste and preferences
45. 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
expansion
market demand curve
elastic
46. Decisions by individuals about what to do and what not to do.
individual choice
normal good
unemployment rate
movement along a demand curve
47. 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.
simple money multiplier
demand-pull inflation
inverse relationship
hidden unemployment
48. Short-run aggregate supply curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
aggregate demand curve
number of composition of consumers
SRAS curve
49. Period in which a recession becomes prolonged and deep - involving high unemployment.
economics
business cycles
entrepreneurship
depression
50. Long- run aggregate supply curve
LRAS curv
structural unemployment
market equilibrium
expenditure approach