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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 measure of the price level - or the average level of prices.
number of composition of consumers
demand elasticity
inelastic
price index
2. The lowest point of a business cycle
neutral good
law of demand
depression
trough
3. Significantly responsive to a change in price.
consumer good
elastic
investment expenditures
inferior good
4. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
opportunity cost
marginal propensity to consume (MPC)
tariff
5. 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.
elastic demand
LRAS curv
demand
demand curve
6. When the percent of change in the quantity demanded equals the percent of change in price.
inverse relationship
opportunity cost
investment expenditures
unit elastic
7. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
elastic
Phillips curve
market supply curve
Gross Domestic Product
8. 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
recession
peak
consumer surplus
9. The price of a domestic currency in terms of a foreign currency.
consumption expenditures
exchange rate
market economy
price floor
10. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
law of demand
market equilibrium
inverse relationship
opportunity cost
11. 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
hyperinflation
quantity exchanged
rule of 70
12. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
trough
elastic
susbtitute goods
movement along a demand curve
13. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
expansionary monetary policy
neutral good
recession
elastic demand
14. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
perfectly elastic
Phillips curve
disposable personal income
15. Decisions by individuals about what to do and what not to do.
number of composition of consumers
Phillips curve
purchasing power
individual choice
16. The income of households after taxes have been paid
law of demand
cyclical unemployment
disposable personal income
frictional unemployment
17. Price control set when the market price is believed to be too high.
law of supply
price ceiling
aggregate demand curve
tariff
18. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
nominal GDP
stagflation
A decrease in TR following an increase in price = elastic demand
expansionary fiscal policy
19. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
marginal revenue
aggregate supply curve
complimentary goods
20. 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.
movement along a demand curve
demand curve shifts
economics
national economic accounts
21. 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).
market demand curve
inverse relationship
trade surplus
substitution effect
22. A relationship between two factors in which the factors move in the same direction.
trade deficit
law of supply
resource
direct relationship
23. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
nominal GDP
changes in consumer expectations
price index
expansion
24. 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.
Phillips curve
labor force
cyclical unemployment
microeconomics
25. The cost of something in terms of what one must give up to get it.
opportunity cost
quantity exchanged
economics
expansion
26. The amount of money available to consumers to purchase goods and services.
purchasing power
A decrease in TR following an increase in price = elastic demand
expansionary fiscal policy
marginal propensity to consume (MPC)
27. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
expenditure approach
consumer income rise
real GDP
market economy
28. 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.
trough
purchasing power
simple money multiplier
consumption expenditures
29. Short-run aggregate supply curve
simple money multiplier
elastic
opportunity cost
SRAS curve
30. 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.
opportunity cost
demand schedule
inflation
demand-pull inflation
31. The dollar value of production by a country's citizens.
interest
monetary policy
movement along a demand curve
Gross National Product
32. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
expansionary fiscal policy
changes in consumer expectations
exchange rate
required reserve ratio (RRR)
33. 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.
frictional unemployment
inelastic
consumer taste and preferences
Labor
34. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
macroeconomics
elastic
entrepreneurship
national economic accounts
35. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
demand schedule
inflation
business cycles
36. 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).
expansionary fiscal policy
market supply curve
LRAS curv
consumer good
37. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
purchasing power
national economic accounts
inflation
hidden unemployment
38. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
cost-push inflation
changes in consumer expectations
land
39. The effort of workers.
scarce
susbtitute goods
fiscal policy
Labor
40. 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.
interest
entrepreneurship
inferior good
Labor
41. The willingness and ability of buyers to purchase a good or service.
scarcity
LRAS curv
demand
consumer taste and preferences
42. The highest point of a business cycle.
consumer income rise
peak
demand-pull inflation
consumer good
43. 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.
business cycle
Phillips curve
aggregate demand curve
A decrease in TR following an increase in price = elastic demand
44. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
normal good
cyclical unemployment
fiscal policy
expenditure approach
45. An increase in the price level
inflation
entrepreneurship
depression
national income (NI)
46. 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).
unemployment rate
monopoly
hyperinflation
elastic demand
47. 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.
oligopoly
inelastic demand
required reserve ratio (RRR)
command economy
48. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
cost-push inflation
money multiplier
trade deficit
inverse relationship
49. Not significantly responsive to changes in price.
depreciation
inelastic
trade deficit
rule of 70
50. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
unit elastic
market equilibrium
real GDP