SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 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.
aggregate demand curve
law of supply
peak
purchasing power
2. The proportion of each additional dollar of income that will go toward consumption expenditures.
market supply curve
government expenditures
opportunity cost
marginal propensity to consume (MPC)
3. 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.
trade deficit
perfectly elastic
demand curve shifts
money multiplier
4. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
susbtitute goods
exchange rate
interest
land
5. The amount of a good actually sold.
monetary policy
individual choice
quantity exchanged
frictional unemployment
6. The effort of workers.
cyclical unemployment
Labor
disposable personal income
cost-push inflation
7. The long-run pattern of growth and recession.
peak
business cycle
Gross Domestic Product
Marginal Propensity to Save (MPS)
8. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
changes in consumer expectations
fiscal policy
market demand curve
trough
9. 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.
business cycles
entrepreneurship
market economy
frictional unemployment
10. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
national income (NI)
nominal GDP
consumer surplus
expenditure approach
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.
demand-pull inflation
aggregate demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
substitution effect
12. Fluctuations in real GDP around the trend value; also called economic fluctuations.
inflation
business cycles
monetary policy
resource
13. Price control set when the market price is believed to be too low.
market demand curve
price floor
command economy
inflation
14. 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.
frictional unemployment
national income (NI)
business cycle
microeconomics
15. Real cost of an item is its opportunity cost.
command economy
opportunity cost
changes in consumer expectations
labor force
16. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
unit elastic
depression
demand schedule
17. The dollar value of production within a nation's border.
A decrease in TR following an increase in price = elastic demand
Gross Domestic Product
normal good
depression
18. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
cyclical unemployment
normal good
demand
market economy
19. The dollar value of goods and services sold to governments.
government expenditures
national economic accounts
nominal GDP
peak
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
inverse relationship
frictional unemployment
labor force
trade surplus
21. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
law of demand
depreciation
required reserve ratio (RRR)
marginal propensity to consume (MPC)
22. 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.
inelastic
complimentary goods
direct relationship
structural unemployment
23. Significantly responsive to a change in price.
interest
macroeconomics
elastic
consumption expenditures
24. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
labor force
law of demand
market supply curve
hyperinflation
25. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
number of composition of consumers
expansionary fiscal policy
demand
26. The study of scarcity and choice.
price floor
aggregate supply curve
economics
price ceiling
27. 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
required reserve ratio (RRR)
economics
demand-pull inflation
28. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
Labor
trough
consumer income rise
cost-push inflation
29. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
business cycles
scarcity
Gross National Product
30. 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
law of demand
law of demand
investment expenditures
31. 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.
inflation
SRAS curve
stagflation
labor force
32. 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
labor force
nominal GDP
aggregate supply curve
inelastic demand
33. 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).
expenditure approach
depreciation
market supply curve
expansionary fiscal policy
34. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
Gross National Product
market economy
cyclical unemployment
substitution effect
35. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
direct relationship
demand
Labor
consumer surplus
36. 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.
Phillips curve
elastic demand
resource
purchasing power
37. The price of a domestic currency in terms of a foreign currency.
business cycle
exchange rate
monetary policy
entrepreneurship
38. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
Labor
hidden unemployment
demand schedule
total revenue
39. An increase or decrease in consumer income will cause a shift in the Demand Curve.
inferior good
consumer good
command economy
monetary policy
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.
money multiplier
stagflation
consumer good
trade deficit
41. The highest point of a business cycle.
peak
inelastic demand
movement along a demand curve
entrepreneurship
42. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
substitution effect
movement along a demand curve
nominal GDP
business cycle
43. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
trough
elastic demand
price ceiling
44. 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.
expansionary fiscal policy
fiscal policy
recession
hyperinflation
45. 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.
microeconomics
perfectly elastic
law of supply
import quotas
46. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
quantity exchanged
elastic
stagflation
47. The willingness and ability of buyers to purchase a good or service.
law of demand
market demand curve
neutral good
demand
48. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
movement along a demand curve
money multiplier
inverse relationship
Phillips curve
49. The dollar value of all the goods and services sold to house holds.
quantity exchanged
marginal revenue
consumption expenditures
economic aggregates
50. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
purchasing power
trough
macroeconomics
diminishing marginal utility