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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 period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
demand curve
real GDP
recession
national income (NI)
2. 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 supply curve
economic aggregates
aggregate demand curve
trade surplus
3. The amount of a good actually sold.
expansion
economic aggregates
quantity exchanged
neutral good
4. The study of scarcity and choice.
economics
market demand curve
changes in consumer expectations
inelastic demand
5. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
monopoly
SRAS curve
economics
6. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
trough
perfectly elastic
A decrease in TR following an increase in price = elastic demand
demand curve shifts
7. An increase in the price level
demand
Gross Domestic Product
simple money multiplier
inflation
8. A shift of the demand curve resulting from a change in consumer taste and preferences.
demand schedule
demand elasticity
unit elastic
consumer taste and preferences
9. 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
labor force
law of demand
monopoly
interest
10. 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
quantity exchanged
peak
command economy
11. Restrictions on the quantity of a good that can be imported
Phillips curve
cost-push inflation
import quotas
consumer good
12. 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
real GDP
depreciation
entrepreneurship
money multiplier
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.
demand curve
perfectly elastic
changes in consumer expectations
cost-push inflation
14. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
movement along a demand curve
quantity exchanged
fiscal policy
national economic accounts
15. A curve defining the relationship between real production and price level.
changes in consumer expectations
demand curve shifts
aggregate supply curve
marginal revenue
16. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
frictional unemployment
substitution effect
individual choice
economics
17. The amount of money available to consumers to purchase goods and services.
purchasing power
microeconomics
required reserve ratio (RRR)
peak
18. Period in which a recession becomes prolonged and deep - involving high unemployment.
money multiplier
purchasing power
number of composition of consumers
depression
19. An industry structure in which there is only one seller for a product.
monopoly
monetary policy
exchange rate
expansionary monetary policy
20. The dollar value of all the goods and services sold to house holds.
entrepreneurship
SRAS curve
hyperinflation
consumption expenditures
21. The highest point of a business cycle.
peak
Marginal Propensity to Save (MPS)
national income (NI)
labor force
22. 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).
simple money multiplier
business cycles
unemployment rate
investment expenditures
23. A measure of the price level - or the average level of prices.
movement along a demand curve
price index
national income (NI)
LRAS curv
24. 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.
Phillips curve
unit elastic
oligopoly
government expenditures
25. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
national income (NI)
consumer surplus
Phillips curve
price floor
26. The dollar value of production by a country's citizens.
inelastic
depression
Gross National Product
disposable personal income
27. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
command economy
complimentary goods
total revenue
rule of 70
28. 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
command economy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
substitution effect
29. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
market demand curve
changes in consumer expectations
expansionary fiscal policy
market equilibrium
30. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
total revenue
movement along a demand curve
consumer good
expansion
31. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
market equilibrium
diminishing marginal utility
nominal GDP
law of supply
32. A bad depressingly prolonged recession in economic activity.
marginal revenue
depression
hyperinflation
LRAS curv
33. 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.
frictional unemployment
market supply curve
Gross National Product
movement along a demand curve
34. 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
individual choice
market supply curve
resource
35. Rising prices - across the board.
inflation
peak
neutral good
demand-pull inflation
36. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
consumption expenditures
required reserve ratio (RRR)
consumer surplus
demand curve
37. 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).
required reserve ratio (RRR)
demand curve shifts
expansionary fiscal policy
expansion
38. The effort of workers.
quantity exchanged
scarce
total revenue
Labor
39. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
microeconomics
peak
marginal revenue
land
40. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
perfectly elastic
demand schedule
rule of 70
depreciation
41. The lowest point of a business cycle
opportunity cost
expenditure approach
trough
demand-pull inflation
42. The dollar value of goods and services sold to governments.
consumption expenditures
exchange rate
frictional unemployment
government expenditures
43. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
demand-pull inflation
trade deficit
market supply curve
consumer surplus
44. Government officials make decisions about economy.
trade surplus
neutral good
inflation
command economy
45. Price control set when the market price is believed to be too high.
price ceiling
import quotas
market equilibrium
consumer surplus
46. Significantly responsive to a change in price.
expansionary fiscal policy
elastic
investment expenditures
demand elasticity
47. A special tax imposed on imported goods.
tariff
Phillips curve
opportunity cost
expenditure approach
48. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
unemployment rate
scarcity
opportunity cost
Marginal Propensity to Save (MPS)
49. Anything that shows the economy as a whole.
economic aggregates
fiscal policy
movement along a demand curve
elastic
50. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
inelastic
trough
complimentary goods