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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 relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
oligopoly
investment expenditures
inverse relationship
consumer surplus
2. Long- run aggregate supply curve
nominal GDP
cost-push inflation
depression
LRAS curv
3. 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
rule of 70
interest
law of demand
4. The dollar value of production within a nation's border.
Gross Domestic Product
macroeconomics
changes in consumer expectations
law of supply
5. When the percent of change in the quantity demanded equals the percent of change in price.
SRAS curve
interest
import quotas
unit elastic
6. Anything that shows the economy as a whole.
business cycles
unit elastic
peak
economic aggregates
7. The payment that capital receives in the factor market.
interest
national economic accounts
A decrease in TR following an increase in price = elastic demand
Labor
8. Not significantly responsive to changes in price.
national economic accounts
inelastic
substitution effect
rule of 70
9. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
tariff
market economy
scarcity
aggregate demand curve
10. 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.
change in quantity demanded
national income (NI)
rule of 70
inverse relationship
11. A bad depressingly prolonged recession in economic activity.
demand schedule
consumer income rise
expansionary fiscal policy
depression
12. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
LRAS curv
scarce
Labor
complimentary goods
13. A curve defining the relationship between real production and price level.
Gross Domestic Product
aggregate supply curve
scarce
individual choice
14. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
trade surplus
fiscal policy
inelastic
recession
15. 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.
aggregate demand curve
diminishing marginal utility
monopoly
perfectly elastic
16. Price control set when the market price is believed to be too low.
consumption expenditures
unemployment rate
SRAS curve
price floor
17. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
depression
market equilibrium
quantity exchanged
inflation
18. 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
price floor
consumer taste and preferences
microeconomics
nominal GDP
19. The lowest point of a business cycle
scarce
LRAS curv
recession
trough
20. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
entrepreneurship
recession
hidden unemployment
scarcity
21. Government officials make decisions about economy.
susbtitute goods
stagflation
Gross Domestic Product
command economy
22. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
opportunity cost
changes in consumer expectations
marginal propensity to consume (MPC)
structural unemployment
23. 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 demand
market demand curve
entrepreneurship
law of supply
24. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).
inflation
cost-push inflation
consumer surplus
unemployment rate
25. 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.
elastic demand
peak
demand curve shifts
change in quantity demanded
26. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
complimentary goods
trade surplus
fiscal policy
27. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
market equilibrium
inflation
Labor
law of demand
28. Restrictions on the quantity of a good that can be imported
hyperinflation
nominal GDP
scarce
import quotas
29. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
fiscal policy
trough
quantity exchanged
susbtitute goods
30. 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.
consumer surplus
labor force
stagflation
depression
31. 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).
market equilibrium
price floor
simple money multiplier
unemployment rate
32. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
disposable personal income
cyclical unemployment
Gross National Product
market economy
33. (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.
purchasing power
number of composition of consumers
neutral good
trade surplus
34. 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.
inflation
simple money multiplier
import quotas
diminishing marginal utility
35. 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.
national economic accounts
recession
frictional unemployment
market supply curve
36. The income of households after taxes have been paid
disposable personal income
market demand curve
number of composition of consumers
demand
37. A measure of the price level - or the average level of prices.
law of supply
market economy
price index
trade deficit
38. The cost of something in terms of what one must give up to get it.
business cycle
opportunity cost
frictional unemployment
substitution effect
39. 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?
direct relationship
demand elasticity
LRAS curv
unemployed
40. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
frictional unemployment
consumer taste and preferences
movement along a demand curve
opportunity cost
41. A special tax imposed on imported goods.
business cycle
change in quantity demanded
tariff
aggregate supply curve
42. 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).
unemployment rate
monopoly
expansionary fiscal policy
consumer surplus
43. A Latin phrase meaning 'all things constant.'
economics
nominal GDP
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
demand curve shifts
44. The dollar value of production by a country's citizens.
A decrease in TR following an increase in price = elastic demand
inflation
trough
Gross National Product
45. 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.
unemployed
change in quantity demanded
inelastic demand
peak
46. 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
inflation
market economy
demand curve
47. 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
law of demand
oligopoly
economic aggregates
48. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
real GDP
inferior good
disposable personal income
recession
49. Period in which a recession becomes prolonged and deep - involving high unemployment.
unemployed
direct relationship
cost-push inflation
depression
50. A relationship between two factors in which the factors move in the same direction.
direct relationship
interest
unit elastic
opportunity cost