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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. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
hidden unemployment
hyperinflation
inverse relationship
2. A bad depressingly prolonged recession in economic activity.
SRAS curve
consumer good
depression
Gross National Product
3. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
business cycles
neutral good
microeconomics
4. Decisions by individuals about what to do and what not to do.
inflation
disposable personal income
individual choice
market economy
5. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
labor force
changes in consumer expectations
monetary policy
elastic demand
6. The transition point between economic recession and recovery.
trough
interest
depression
law of demand
7. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.
demand curve shifts
scarcity
opportunity cost
inelastic demand
8. A Latin phrase meaning 'all things constant.'
diminishing marginal utility
nominal GDP
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
land
9. A measure of the price level - or the average level of prices.
labor force
microeconomics
price index
demand curve
10. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
depreciation
price index
macroeconomics
Phillips curve
11. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
elastic demand
cyclical unemployment
price index
12. 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.
neutral good
LRAS curv
demand schedule
change in quantity demanded
13. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
real GDP
labor force
market economy
fiscal policy
14. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand
depression
stagflation
demand curve
15. The payment that capital receives in the factor market.
inelastic
cyclical unemployment
real GDP
interest
16. The dollar value of goods and services sold to governments.
demand curve shifts
expansion
government expenditures
national income (NI)
17. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
nominal GDP
depression
monetary policy
18. 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
market demand curve
depression
scarce
19. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
scarce
expansion
stagflation
inflation
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
real GDP
consumer income rise
aggregate demand curve
demand-pull inflation
21. An increase in the price level
interest
law of demand
change in quantity demanded
inflation
22. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
normal good
opportunity cost
unit elastic
23. 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).
price ceiling
susbtitute goods
trough
cost-push inflation
24. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
import quotas
inverse relationship
monopoly
consumption expenditures
25. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
Phillips curve
interest
scarce
national economic accounts
26. 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.
neutral good
inverse relationship
inferior good
economics
27. Restrictions on the quantity of a good that can be imported
import quotas
inelastic demand
demand curve shifts
land
28. 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.
oligopoly
economics
macroeconomics
expansionary fiscal policy
29. The income earned by households and profits earned by firms after subtracting.
government expenditures
market equilibrium
elastic
national income (NI)
30. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
market supply curve
trade deficit
Phillips curve
31. Anything that shows the economy as a whole.
money multiplier
structural unemployment
expenditure approach
economic aggregates
32. The lowest point of a business cycle
fiscal policy
Labor
monopoly
trough
33. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
inflation
Gross National Product
market demand curve
trade deficit
34. Long- run aggregate supply curve
expansionary fiscal policy
unemployed
LRAS curv
peak
35. Anything that can be used to produce something else
resource
cost-push inflation
expenditure approach
trough
36. 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).
direct relationship
market demand curve
resource
national income (NI)
37. The dollar value of all the goods and services sold to house holds.
depreciation
economics
inflation
consumption expenditures
38. 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.
fiscal policy
scarcity
aggregate demand curve
trade surplus
39. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
aggregate demand curve
price ceiling
entrepreneurship
40. Government officials make decisions about economy.
entrepreneurship
command economy
price ceiling
market equilibrium
41. 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
inelastic
trade surplus
rule of 70
investment expenditures
42. The long-run pattern of growth and recession.
trough
required reserve ratio (RRR)
business cycle
consumer taste and preferences
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.
microeconomics
demand-pull inflation
real GDP
LRAS curv
44. The study of scarcity and choice.
frictional unemployment
national economic accounts
perfectly elastic
economics
45. 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.
expenditure approach
hidden unemployment
required reserve ratio (RRR)
perfectly elastic
46. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
resource
required reserve ratio (RRR)
scarce
consumer income rise
47. 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.
aggregate supply curve
frictional unemployment
hyperinflation
expansionary fiscal policy
48. The price of a domestic currency in terms of a foreign currency.
expansionary fiscal policy
marginal propensity to consume (MPC)
exchange rate
diminishing marginal utility
49. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
total revenue
law of demand
inferior good
import quotas
50. Rising prices - across the board.
fiscal policy
inflation
movement along a demand curve
diminishing marginal utility