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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 table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.
resource
substitution effect
demand schedule
scarcity
2. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
neutral good
perfectly elastic
economics
expenditure approach
3. (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.
hyperinflation
number of composition of consumers
entrepreneurship
unit elastic
4. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
demand curve shifts
price floor
marginal propensity to consume (MPC)
5. 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.
demand curve shifts
oligopoly
exchange rate
monetary policy
6. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
economic aggregates
price floor
Phillips curve
business cycle
7. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
demand-pull inflation
scarce
complimentary goods
economics
8. 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.
inelastic demand
diminishing marginal utility
complimentary goods
substitution effect
9. 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.
hidden unemployment
microeconomics
national economic accounts
consumer taste and preferences
10. Period in which a recession becomes prolonged and deep - involving high unemployment.
marginal propensity to consume (MPC)
depression
macroeconomics
consumer taste and preferences
11. 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.
investment expenditures
demand-pull inflation
government expenditures
marginal revenue
12. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
total revenue
disposable personal income
unemployment rate
13. 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.
demand elasticity
structural unemployment
simple money multiplier
business cycle
14. 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
trough
complimentary goods
resource
15. The cost of something in terms of what one must give up to get it.
opportunity cost
consumption expenditures
changes in consumer expectations
expenditure approach
16. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
quantity exchanged
national economic accounts
depression
demand curve shifts
17. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
national income (NI)
marginal propensity to consume (MPC)
land
scarcity
18. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inferior good
business cycles
inelastic
inverse relationship
19. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
change in quantity demanded
LRAS curv
consumer surplus
20. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
purchasing power
expenditure approach
A decrease in TR following an increase in price = elastic demand
structural unemployment
21. 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).
law of demand
expansionary fiscal policy
expansion
market demand curve
22. An industry structure in which there is only one seller for a product.
monopoly
simple money multiplier
susbtitute goods
demand curve
23. 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.
expansion
demand curve
hyperinflation
scarcity
24. The willingness and ability of buyers to purchase a good or service.
law of demand
demand
aggregate supply curve
demand schedule
25. A measure of the price level - or the average level of prices.
price index
resource
interest
business cycle
26. Government officials make decisions about economy.
inelastic
change in quantity demanded
import quotas
command economy
27. The proportion of each additional dollar of income that is saved.
number of composition of consumers
structural unemployment
Marginal Propensity to Save (MPS)
trough
28. Decisions by individuals about what to do and what not to do.
individual choice
demand curve
trade deficit
demand curve shifts
29. The addition to total revenue created by selling one additional unit of ouput.
perfectly elastic
marginal revenue
national income (NI)
expenditure approach
30. The amount of a good actually sold.
consumer good
quantity exchanged
law of supply
price floor
31. The amount of money available to consumers to purchase goods and services.
aggregate demand curve
opportunity cost
purchasing power
inferior good
32. Expenditure by businesses on plant and equipment and the change in business invention.
macroeconomics
economics
investment expenditures
quantity exchanged
33. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
purchasing power
movement along a demand curve
monetary policy
34. 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
aggregate demand curve
hyperinflation
business cycle
nominal GDP
35. 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
law of demand
trade surplus
aggregate demand curve
changes in consumer expectations
36. Anything that can be used to produce something else
resource
aggregate supply curve
business cycles
command economy
37. The dollar value of goods and services sold to governments.
government expenditures
market demand curve
consumer taste and preferences
money multiplier
38. 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.
business cycle
structural unemployment
government expenditures
microeconomics
39. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
unit elastic
unemployed
investment expenditures
trade deficit
40. 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.
business cycle
stagflation
inflation
depreciation
41. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
substitution effect
exchange rate
expansion
macroeconomics
42. 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
macroeconomics
consumer good
Labor
43. The income earned by households and profits earned by firms after subtracting.
hyperinflation
national income (NI)
real GDP
scarce
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.
complimentary goods
inferior good
economic aggregates
elastic demand
45. Significantly responsive to a change in price.
consumption expenditures
elastic
peak
cost-push inflation
46. The long-run pattern of growth and recession.
business cycle
depreciation
consumption expenditures
resource
47. 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.
price index
recession
aggregate demand curve
tariff
48. The highest point of a business cycle.
peak
consumer income rise
perfectly elastic
trade surplus
49. Goods that go together - if price ? the demand for both that good and complimentary good ?.
purchasing power
complimentary goods
Phillips curve
interest
50. 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
trade deficit
demand elasticity
demand curve shifts