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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. 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
purchasing power
microeconomics
2. Anything that can be used to produce something else
fiscal policy
economics
Labor
resource
3. A special tax imposed on imported goods.
change in quantity demanded
SRAS curve
microeconomics
tariff
4. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
depression
consumer taste and preferences
labor force
5. The transition point between economic recession and recovery.
hidden unemployment
trough
inverse relationship
consumption expenditures
6. 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.
substitution effect
unit elastic
inferior good
hidden unemployment
7. Expenditure by businesses on plant and equipment and the change in business invention.
scarcity
law of demand
frictional unemployment
investment expenditures
8. An increase in the price level
cost-push inflation
inflation
total revenue
neutral good
9. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
demand schedule
trade surplus
rule of 70
10. The effort of workers.
Labor
depression
A decrease in TR following an increase in price = elastic demand
unemployment rate
11. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
price index
changes in consumer expectations
inverse relationship
expansion
12. Government officials make decisions about economy.
demand curve
inelastic
monopoly
command economy
13. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
trade deficit
diminishing marginal utility
movement along a demand curve
14. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
simple money multiplier
real GDP
structural unemployment
required reserve ratio (RRR)
15. Price control set when the market price is believed to be too low.
inelastic demand
opportunity cost
demand curve shifts
price floor
16. Price control set when the market price is believed to be too high.
national economic accounts
price ceiling
price floor
expenditure approach
17. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
demand curve
inflation
direct relationship
market economy
18. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
law of demand
total revenue
depreciation
marginal propensity to consume (MPC)
19. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
command economy
Phillips curve
substitution effect
cyclical unemployment
20. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
fiscal policy
economics
inflation
21. A measure of the price level - or the average level of prices.
marginal revenue
SRAS curve
susbtitute goods
price index
22. The payment that capital receives in the factor market.
macroeconomics
nominal GDP
interest
investment expenditures
23. Decisions by individuals about what to do and what not to do.
expansionary monetary policy
recession
individual choice
Phillips curve
24. Long- run aggregate supply curve
LRAS curv
national income (NI)
scarcity
rule of 70
25. 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.
hyperinflation
structural unemployment
money multiplier
law of demand
26. Restrictions on the quantity of a good that can be imported
normal good
price floor
import quotas
change in quantity demanded
27. The amount of a good actually sold.
quantity exchanged
Phillips curve
import quotas
trough
28. 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
Marginal Propensity to Save (MPS)
neutral good
normal good
29. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
national income (NI)
consumer taste and preferences
susbtitute goods
law of demand
30. 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?
fiscal policy
macroeconomics
market demand curve
demand elasticity
31. The income of households after taxes have been paid
changes in consumer expectations
national income (NI)
land
disposable personal income
32. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
economic aggregates
investment expenditures
hidden unemployment
33. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
cost-push inflation
recession
diminishing marginal utility
Phillips curve
34. A bad depressingly prolonged recession in economic activity.
depression
normal good
monopoly
simple money multiplier
35. The dollar value of production within a nation's border.
nominal GDP
Gross Domestic Product
scarcity
government expenditures
36. Significantly responsive to a change in price.
price ceiling
elastic
trough
depression
37. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
aggregate supply curve
consumer income rise
required reserve ratio (RRR)
change in quantity demanded
38. Fluctuations in real GDP around the trend value; also called economic fluctuations.
expenditure approach
national income (NI)
business cycles
cost-push inflation
39. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
real GDP
expenditure approach
trade deficit
market supply curve
40. 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.
tariff
frictional unemployment
unit elastic
peak
41. 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.
market equilibrium
inverse relationship
Labor
perfectly elastic
42. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
scarce
trade surplus
market supply curve
consumer taste and preferences
43. 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
money multiplier
unemployment rate
market supply curve
44. The lowest point of a business cycle
trough
substitution effect
command economy
frictional unemployment
45. The amount of money available to consumers to purchase goods and services.
unit elastic
price floor
purchasing power
microeconomics
46. 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.
price ceiling
demand curve shifts
oligopoly
consumption expenditures
47. 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
A decrease in TR following an increase in price = elastic demand
demand curve shifts
scarcity
expansionary monetary policy
48. 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.
purchasing power
elastic demand
law of supply
economics
49. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
labor force
monopoly
diminishing marginal utility
stagflation
50. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
market economy
demand schedule
law of demand