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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. 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
cost-push inflation
market economy
susbtitute goods
2. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
entrepreneurship
national income (NI)
market equilibrium
macroeconomics
3. Anything that can be used to produce something else
resource
law of supply
demand elasticity
elastic demand
4. Rising prices - across the board.
inflation
national economic accounts
monetary policy
change in quantity demanded
5. Consumer income rise - demand will rise.
labor force
money multiplier
neutral good
government expenditures
6. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
changes in consumer expectations
law of demand
stagflation
7. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
Marginal Propensity to Save (MPS)
consumer income rise
unemployment rate
A decrease in TR following an increase in price = elastic demand
8. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
structural unemployment
trade deficit
changes in consumer expectations
individual choice
9. 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.
simple money multiplier
changes in consumer expectations
required reserve ratio (RRR)
demand-pull inflation
10. 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).
consumption expenditures
interest
trough
market demand curve
11. 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.
demand
government expenditures
demand schedule
depreciation
12. 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.
trade surplus
perfectly elastic
depression
structural unemployment
13. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
peak
Labor
consumer surplus
aggregate demand curve
14. Price control set when the market price is believed to be too high.
stagflation
economic aggregates
consumer taste and preferences
price ceiling
15. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
change in quantity demanded
Phillips curve
required reserve ratio (RRR)
price floor
16. An increase in the price level
tariff
trough
inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
17. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
individual choice
demand curve
unemployed
demand elasticity
18. 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.
inelastic demand
neutral good
law of supply
government expenditures
19. 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.
required reserve ratio (RRR)
money multiplier
consumer surplus
hidden unemployment
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
real GDP
aggregate supply curve
inflation
21. 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
susbtitute goods
expansionary monetary policy
inflation
22. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
hidden unemployment
market economy
nominal GDP
expansionary monetary policy
23. An industry structure in which there is only one seller for a product.
monopoly
unit elastic
market demand curve
expansion
24. A curve defining the relationship between real production and price level.
aggregate supply curve
scarcity
consumer surplus
demand schedule
25. The cost of something in terms of what one must give up to get it.
substitution effect
law of demand
Phillips curve
opportunity cost
26. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
elastic demand
trough
monetary policy
27. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
investment expenditures
entrepreneurship
price index
28. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
hyperinflation
recession
unemployed
expansionary fiscal policy
29. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
rule of 70
trade surplus
marginal revenue
macroeconomics
30. 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.
quantity exchanged
frictional unemployment
economics
aggregate supply curve
31. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
tariff
number of composition of consumers
demand-pull inflation
inverse relationship
32. The income of households after taxes have been paid
import quotas
disposable personal income
cost-push inflation
marginal revenue
33. The long-run pattern of growth and recession.
law of demand
normal good
business cycle
demand schedule
34. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
nominal GDP
marginal propensity to consume (MPC)
simple money multiplier
35. Restrictions on the quantity of a good that can be imported
peak
monopoly
expansionary monetary policy
import quotas
36. The dollar value of production within a nation's border.
consumer income rise
structural unemployment
trough
Gross Domestic Product
37. Expenditure by businesses on plant and equipment and the change in business invention.
consumer surplus
Labor
number of composition of consumers
investment expenditures
38. 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
neutral good
Labor
direct relationship
39. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
inelastic
business cycles
fiscal policy
simple money multiplier
40. The amount of money available to consumers to purchase goods and services.
real GDP
import quotas
purchasing power
inelastic
41. A relationship between two factors in which the factors move in the same direction.
law of demand
direct relationship
trough
opportunity cost
42. 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.
hyperinflation
rule of 70
market demand curve
demand elasticity
43. A special tax imposed on imported goods.
tariff
money multiplier
changes in consumer expectations
law of demand
44. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.
A decrease in TR following an increase in price = elastic demand
demand curve
elastic demand
depression
45. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
monopoly
demand curve shifts
monetary policy
46. Long- run aggregate supply curve
market economy
LRAS curv
perfectly elastic
law of demand
47. 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
Marginal Propensity to Save (MPS)
nominal GDP
consumer good
price ceiling
48. 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.
demand curve shifts
marginal revenue
labor force
aggregate demand curve
49. The willingness and ability of buyers to purchase a good or service.
price ceiling
expansionary fiscal policy
demand
Labor
50. 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
monetary policy
Phillips curve
microeconomics