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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. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
perfectly elastic
movement along a demand curve
consumer good
monopoly
2. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
Marginal Propensity to Save (MPS)
resource
A decrease in TR following an increase in price = elastic demand
monopoly
3. 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.
hyperinflation
monetary policy
peak
purchasing power
4. 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
quantity exchanged
demand-pull inflation
monetary policy
5. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
consumption expenditures
consumer income rise
Gross Domestic Product
6. Rising prices - across the board.
structural unemployment
opportunity cost
simple money multiplier
inflation
7. The payment that capital receives in the factor market.
changes in consumer expectations
depression
disposable personal income
interest
8. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
price ceiling
consumer good
market economy
aggregate supply curve
9. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
inverse relationship
microeconomics
consumer surplus
market equilibrium
10. 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.
consumer taste and preferences
inferior good
demand
microeconomics
11. Long- run aggregate supply curve
resource
substitution effect
LRAS curv
A decrease in TR following an increase in price = elastic demand
12. 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
resource
structural unemployment
trough
13. A bad depressingly prolonged recession in economic activity.
quantity exchanged
consumer income rise
hidden unemployment
depression
14. 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.
consumer surplus
economic aggregates
structural unemployment
import quotas
15. 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.
recession
demand curve shifts
LRAS curv
complimentary goods
16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
scarce
required reserve ratio (RRR)
perfectly elastic
susbtitute goods
17. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
expansion
substitution effect
neutral good
demand curve
18. Short-run aggregate supply curve
consumer surplus
scarce
SRAS curve
marginal revenue
19. The cost of something in terms of what one must give up to get it.
tariff
rule of 70
opportunity cost
unemployment rate
20. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
depression
law of demand
recession
susbtitute goods
21. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
consumption expenditures
quantity exchanged
real GDP
total revenue
22. 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.
law of supply
nominal GDP
Gross Domestic Product
demand schedule
23. 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
business cycle
simple money multiplier
normal good
real GDP
24. The dollar value of production by a country's citizens.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
nominal GDP
LRAS curv
Gross National Product
25. Expenditure by businesses on plant and equipment and the change in business invention.
opportunity cost
Phillips curve
investment expenditures
inelastic
26. The long-run pattern of growth and recession.
susbtitute goods
business cycle
opportunity cost
trough
27. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
hidden unemployment
susbtitute goods
Marginal Propensity to Save (MPS)
28. Real cost of an item is its opportunity cost.
nominal GDP
scarce
import quotas
opportunity cost
29. The price of a domestic currency in terms of a foreign currency.
exchange rate
elastic
inverse relationship
inelastic demand
30. 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
oligopoly
law of demand
simple money multiplier
nominal GDP
31. 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
market demand curve
market economy
32. 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
scarcity
aggregate demand curve
rule of 70
stagflation
33. The study of scarcity and choice.
economics
price floor
fiscal policy
law of supply
34. Anything that shows the economy as a whole.
macroeconomics
tariff
economic aggregates
structural unemployment
35. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarcity
labor force
opportunity cost
unemployed
36. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
consumer taste and preferences
price ceiling
land
normal good
37. The dollar value of production within a nation's border.
Gross Domestic Product
frictional unemployment
substitution effect
consumer taste and preferences
38. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
demand schedule
trade surplus
unit elastic
market equilibrium
39. When the percent of change in the quantity demanded equals the percent of change in price.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
diminishing marginal utility
unit elastic
40. 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
nominal GDP
Gross National Product
land
consumption expenditures
41. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
diminishing marginal utility
microeconomics
price floor
42. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
exchange rate
cost-push inflation
required reserve ratio (RRR)
tariff
43. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
complimentary goods
trade surplus
land
perfectly elastic
44. The income earned by households and profits earned by firms after subtracting.
scarce
command economy
national income (NI)
demand elasticity
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.
perfectly elastic
consumer income rise
purchasing power
depreciation
46. A curve defining the relationship between real production and price level.
structural unemployment
national economic accounts
aggregate supply curve
market supply curve
47. Consumer income rise - demand will rise.
consumer taste and preferences
Phillips curve
neutral good
depreciation
48. 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.
demand curve
market demand curve
frictional unemployment
required reserve ratio (RRR)
49. 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.
A decrease in TR following an increase in price = elastic demand
quantity exchanged
macroeconomics
elastic demand
50. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
law of demand
substitution effect
elastic
expenditure approach