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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. 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.
quantity exchanged
market equilibrium
structural unemployment
scarcity
2. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
economic aggregates
national income (NI)
depression
susbtitute goods
3. The cost of something in terms of what one must give up to get it.
national economic accounts
hyperinflation
opportunity cost
trough
4. The highest point of a business cycle.
recession
demand elasticity
Phillips curve
peak
5. When the percent of change in the quantity demanded equals the percent of change in price.
aggregate demand curve
unemployed
unit elastic
resource
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.
inferior good
frictional unemployment
Gross National Product
simple money multiplier
7. An industry structure in which there is only one seller for a product.
demand-pull inflation
inelastic
monetary policy
monopoly
8. The dollar value of all the goods and services sold to house holds.
money multiplier
consumption expenditures
resource
demand curve
9. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
price index
import quotas
susbtitute goods
Phillips curve
10. A curve defining the relationship between real production and price level.
trough
aggregate supply curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
trade deficit
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.
perfectly elastic
money multiplier
Phillips curve
law of supply
12. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
recession
nominal GDP
substitution effect
price index
13. Fluctuations in real GDP around the trend value; also called economic fluctuations.
command economy
business cycles
consumption expenditures
law of demand
14. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
rule of 70
normal good
macroeconomics
law of demand
15. Restrictions on the quantity of a good that can be imported
disposable personal income
command economy
import quotas
recession
16. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.
microeconomics
number of composition of consumers
price floor
real GDP
17. The lowest point of a business cycle
required reserve ratio (RRR)
trough
demand
opportunity cost
18. A special tax imposed on imported goods.
cyclical unemployment
tariff
Labor
diminishing marginal utility
19. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarce
number of composition of consumers
hidden unemployment
scarcity
20. 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
normal good
demand schedule
real GDP
macroeconomics
21. A shift of the demand curve resulting from a change in consumer taste and preferences.
expansionary monetary policy
consumer taste and preferences
demand elasticity
LRAS curv
22. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
Marginal Propensity to Save (MPS)
consumption expenditures
diminishing marginal utility
demand schedule
23. The effort of workers.
Labor
land
A decrease in TR following an increase in price = elastic demand
price floor
24. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
changes in consumer expectations
direct relationship
stagflation
25. 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.
command economy
scarcity
demand-pull inflation
price ceiling
26. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
aggregate supply curve
disposable personal income
fiscal policy
money multiplier
27. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
monopoly
changes in consumer expectations
susbtitute goods
microeconomics
28. Price control set when the market price is believed to be too low.
consumer taste and preferences
real GDP
price floor
number of composition of consumers
29. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
demand curve shifts
price floor
changes in consumer expectations
30. 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
exchange rate
law of demand
demand curve shifts
depreciation
31. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
law of demand
recession
consumer income rise
labor force
32. Anything that can be used to produce something else
hyperinflation
resource
market demand curve
labor force
33. Price control set when the market price is believed to be too high.
labor force
demand elasticity
peak
price ceiling
34. 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
Phillips curve
unemployed
expansionary monetary policy
consumption expenditures
35. The dollar value of goods and services sold to governments.
government expenditures
consumer taste and preferences
unemployment rate
inverse relationship
36. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
price ceiling
law of demand
national economic accounts
expenditure approach
37. The price of a domestic currency in terms of a foreign currency.
exchange rate
inverse relationship
inflation
monetary policy
38. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
SRAS curve
complimentary goods
peak
expansion
39. Short-run aggregate supply curve
substitution effect
consumer taste and preferences
SRAS curve
demand curve
40. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
unemployed
expansionary monetary policy
interest
recession
41. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
monetary policy
government expenditures
SRAS curve
42. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
demand-pull inflation
monopoly
exchange rate
43. 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.
monetary policy
price index
A decrease in TR following an increase in price = elastic demand
microeconomics
44. A relationship between two factors in which the factors move in the same direction.
unemployed
direct relationship
quantity exchanged
trough
45. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
law of demand
government expenditures
elastic
46. 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.
consumption expenditures
scarce
purchasing power
simple money multiplier
47. The amount of a good actually sold.
quantity exchanged
diminishing marginal utility
changes in consumer expectations
frictional unemployment
48. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).
cost-push inflation
neutral good
structural unemployment
demand-pull inflation
49. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
money multiplier
monopoly
Gross Domestic Product
land
50. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
expenditure approach
macroeconomics
oligopoly
resource