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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 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.
government expenditures
oligopoly
trade surplus
resource
2. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
real GDP
diminishing marginal utility
macroeconomics
individual choice
3. Rising prices - across the board.
consumer good
law of demand
A decrease in TR following an increase in price = elastic demand
inflation
4. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
macroeconomics
cyclical unemployment
entrepreneurship
Marginal Propensity to Save (MPS)
5. The effort of workers.
Labor
trade surplus
Phillips curve
diminishing marginal utility
6. The price of a domestic currency in terms of a foreign currency.
elastic
exchange rate
substitution effect
diminishing marginal utility
7. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
price floor
command economy
susbtitute goods
SRAS curve
8. Significantly responsive to a change in price.
consumption expenditures
elastic
Phillips curve
hyperinflation
9. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
peak
consumer income rise
frictional unemployment
10. The income earned by households and profits earned by firms after subtracting.
aggregate supply curve
national income (NI)
economic aggregates
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
11. Decisions by individuals about what to do and what not to do.
individual choice
economic aggregates
perfectly elastic
command economy
12. 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
unemployment rate
national economic accounts
trough
expansionary monetary policy
13. The payment that capital receives in the factor market.
peak
susbtitute goods
depression
interest
14. Period in which a recession becomes prolonged and deep - involving high unemployment.
demand
Marginal Propensity to Save (MPS)
depression
law of demand
15. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
susbtitute goods
marginal revenue
fiscal policy
national economic accounts
16. A special tax imposed on imported goods.
elastic demand
tariff
macroeconomics
inverse relationship
17. 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.
depreciation
national income (NI)
real GDP
change in quantity demanded
18. Anything that can be used to produce something else
demand elasticity
resource
normal good
labor force
19. The lowest point of a business cycle
movement along a demand curve
real GDP
law of demand
trough
20. 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
trade deficit
unemployed
nominal GDP
21. Government officials make decisions about economy.
command economy
unit elastic
monopoly
inverse relationship
22. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
recession
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
money multiplier
market economy
23. Expenditure by businesses on plant and equipment and the change in business invention.
direct relationship
investment expenditures
unit elastic
monetary policy
24. 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.
individual choice
law of demand
hyperinflation
number of composition of consumers
25. 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
unemployed
government expenditures
macroeconomics
stagflation
26. The sum of all the quantities of a good supplies by all producers at each price.
movement along a demand curve
total revenue
scarcity
market supply curve
27. 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?
demand elasticity
consumer taste and preferences
cyclical unemployment
structural unemployment
28. 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.
law of demand
trade surplus
expansion
aggregate demand curve
29. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
aggregate supply curve
import quotas
recession
30. The study of scarcity and choice.
economics
movement along a demand curve
law of demand
inelastic demand
31. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
economic aggregates
inverse relationship
import quotas
business cycles
32. Consumer income rise - demand will rise.
scarce
Gross National Product
economic aggregates
neutral good
33. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
inflation
law of demand
cyclical unemployment
34. A bad depressingly prolonged recession in economic activity.
depression
law of supply
trade surplus
market economy
35. 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).
labor force
trough
market demand curve
resource
36. Short-run aggregate supply curve
consumer taste and preferences
market demand curve
SRAS curve
tariff
37. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
macroeconomics
demand
elastic demand
38. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
depression
land
complimentary goods
diminishing marginal utility
39. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
opportunity cost
economics
change in quantity demanded
40. Anything that shows the economy as a whole.
substitution effect
land
inflation
economic aggregates
41. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
import quotas
entrepreneurship
expansionary monetary policy
unit elastic
42. When the percent of change in the quantity demanded equals the percent of change in price.
direct relationship
unit elastic
unemployment rate
perfectly elastic
43. (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.
labor force
unemployment rate
depreciation
number of composition of consumers
44. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
unemployment rate
opportunity cost
microeconomics
45. A measure of the price level - or the average level of prices.
market demand curve
elastic demand
price index
exchange rate
46. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
inferior good
individual choice
substitution effect
expansion
47. 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).
monopoly
unit elastic
price ceiling
unemployment rate
48. The dollar value of all the goods and services sold to house holds.
consumption expenditures
opportunity cost
consumer taste and preferences
macroeconomics
49. 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.
demand curve
fiscal policy
demand-pull inflation
LRAS curv
50. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
demand
Phillips curve
market equilibrium
microeconomics