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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 shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
inverse relationship
market equilibrium
SRAS curve
changes in consumer expectations
2. The income earned by households and profits earned by firms after subtracting.
unemployed
trade surplus
inelastic
national income (NI)
3. 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).
unemployment rate
number of composition of consumers
consumer good
marginal propensity to consume (MPC)
4. 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).
inelastic
expansionary fiscal policy
demand
SRAS curve
5. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
unit elastic
scarce
elastic demand
expansionary fiscal policy
6. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
monetary policy
expansion
number of composition of consumers
import quotas
7. Consumer income rise - demand will rise.
trough
depression
neutral good
total revenue
8. 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
expansion
normal good
depression
9. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
inelastic
scarcity
depreciation
quantity exchanged
10. Expenditure by businesses on plant and equipment and the change in business invention.
interest
investment expenditures
neutral good
real GDP
11. 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.
stagflation
command economy
elastic
perfectly elastic
12. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
neutral good
susbtitute goods
trade deficit
business cycle
13. The dollar value of all the goods and services sold to house holds.
entrepreneurship
consumption expenditures
national income (NI)
individual choice
14. Rising prices - across the board.
inflation
demand schedule
consumer good
price ceiling
15. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
complimentary goods
demand schedule
unemployment rate
16. The dollar value of goods and services sold to governments.
inelastic
neutral good
government expenditures
resource
17. The transition point between economic recession and recovery.
business cycle
consumer good
trough
microeconomics
18. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
monopoly
consumer surplus
inflation
trade surplus
19. 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.
Phillips curve
consumer good
monetary policy
hyperinflation
20. A relationship between two factors in which the factors move in the same direction.
market demand curve
direct relationship
structural unemployment
command economy
21. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
hidden unemployment
normal good
expansionary monetary policy
consumer income rise
22. Period in which a recession becomes prolonged and deep - involving high unemployment.
Gross National Product
monetary policy
depression
economic aggregates
23. Restrictions on the quantity of a good that can be imported
import quotas
price floor
unit elastic
inflation
24. Government officials make decisions about economy.
consumption expenditures
inelastic demand
substitution effect
command economy
25. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
business cycles
depreciation
unit elastic
market equilibrium
26. Price control set when the market price is believed to be too high.
nominal GDP
price ceiling
diminishing marginal utility
national economic accounts
27. A curve defining the relationship between real production and price level.
demand curve shifts
LRAS curv
aggregate supply curve
Marginal Propensity to Save (MPS)
28. An increase or decrease in consumer income will cause a shift in the Demand Curve.
microeconomics
direct relationship
demand-pull inflation
consumer good
29. 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
macroeconomics
monopoly
30. 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.
national economic accounts
structural unemployment
stagflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
31. The deliberate control of the money supply by the Federal government.
scarce
demand curve
substitution effect
monetary policy
32. Long- run aggregate supply curve
rule of 70
movement along a demand curve
LRAS curv
market economy
33. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
aggregate demand curve
market economy
trade surplus
34. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
marginal propensity to consume (MPC)
A decrease in TR following an increase in price = elastic demand
LRAS curv
unemployed
35. 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
depression
government expenditures
entrepreneurship
real GDP
36. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
inelastic
demand-pull inflation
depression
37. 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.
microeconomics
demand curve shifts
depression
change in quantity demanded
38. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumption expenditures
consumer taste and preferences
tariff
investment expenditures
39. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
opportunity cost
A decrease in TR following an increase in price = elastic demand
trade deficit
inelastic demand
40. 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
elastic demand
Gross Domestic Product
microeconomics
41. 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
market economy
unemployed
expansionary fiscal policy
stagflation
42. Decisions by individuals about what to do and what not to do.
individual choice
susbtitute goods
monopoly
peak
43. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
Gross National Product
LRAS curv
inferior good
44. 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.
unemployment rate
required reserve ratio (RRR)
nominal GDP
law of supply
45. 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.
expansionary monetary policy
change in quantity demanded
aggregate demand curve
disposable personal income
46. Fluctuations in real GDP around the trend value; also called economic fluctuations.
substitution effect
business cycles
Gross National Product
economic aggregates
47. 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.
stagflation
demand-pull inflation
monetary policy
LRAS curv
48. 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
opportunity cost
nominal GDP
Labor
inferior good
49. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
exchange rate
labor force
movement along a demand curve
change in quantity demanded
50. The sum of all the quantities of a good supplies by all producers at each price.
demand curve shifts
market supply curve
unemployment rate
simple money multiplier