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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 special tax imposed on imported goods.
tariff
resource
aggregate demand curve
law of demand
2. Restrictions on the quantity of a good that can be imported
demand curve
SRAS curve
import quotas
microeconomics
3. 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.
labor force
microeconomics
peak
trade deficit
4. 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
change in quantity demanded
labor force
disposable personal income
5. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand-pull inflation
stagflation
demand curve
monopoly
6. 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.
elastic
structural unemployment
entrepreneurship
quantity exchanged
7. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
expansionary fiscal policy
movement along a demand curve
price index
macroeconomics
8. Price control set when the market price is believed to be too high.
trough
changes in consumer expectations
economics
price ceiling
9. An increase in the price level
complimentary goods
cost-push inflation
inflation
market supply curve
10. Consumer income rise - demand will rise.
unemployment rate
marginal propensity to consume (MPC)
neutral good
Gross National Product
11. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
price floor
opportunity cost
inverse relationship
SRAS curve
12. The study of scarcity and choice.
direct relationship
cyclical unemployment
entrepreneurship
economics
13. Not significantly responsive to changes in price.
inelastic
price index
diminishing marginal utility
recession
14. A Latin phrase meaning 'all things constant.'
direct relationship
real GDP
susbtitute goods
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
15. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
elastic demand
scarce
business cycle
elastic
16. Fluctuations in real GDP around the trend value; also called economic fluctuations.
consumer income rise
business cycles
susbtitute goods
price index
17. 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.
demand curve shifts
inelastic
trade deficit
aggregate demand curve
18. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
investment expenditures
business cycle
trade surplus
law of demand
19. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc
import quotas
perfectly elastic
nominal GDP
unemployed
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
import quotas
Marginal Propensity to Save (MPS)
market supply curve
21. An industry structure in which there is only one seller for a product.
A decrease in TR following an increase in price = elastic demand
marginal revenue
monopoly
movement along a demand curve
22. When the percent of change in the quantity demanded equals the percent of change in price.
direct relationship
unit elastic
price ceiling
nominal GDP
23. 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.
consumer taste and preferences
LRAS curv
oligopoly
perfectly elastic
24. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
national income (NI)
expansion
substitution effect
Phillips curve
25. A measure of the price level - or the average level of prices.
inflation
trade deficit
consumer income rise
price index
26. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
real GDP
marginal propensity to consume (MPC)
law of supply
27. The effort of workers.
Marginal Propensity to Save (MPS)
Labor
expansionary fiscal policy
expenditure approach
28. Anything that shows the economy as a whole.
economic aggregates
A decrease in TR following an increase in price = elastic demand
land
elastic
29. 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.
inferior good
Marginal Propensity to Save (MPS)
hidden unemployment
opportunity cost
30. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
depression
monopoly
diminishing marginal utility
31. A bad depressingly prolonged recession in economic activity.
microeconomics
depression
market supply curve
demand elasticity
32. The proportion of each additional dollar of income that will go toward consumption expenditures.
movement along a demand curve
hidden unemployment
SRAS curve
marginal propensity to consume (MPC)
33. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
cyclical unemployment
market economy
demand-pull inflation
investment expenditures
34. The lowest point of a business cycle
import quotas
trough
oligopoly
demand elasticity
35. The income of households after taxes have been paid
disposable personal income
neutral good
scarcity
expansionary monetary policy
36. Short-run aggregate supply curve
economics
changes in consumer expectations
movement along a demand curve
SRAS curve
37. The transition point between economic recession and recovery.
consumer taste and preferences
oligopoly
depression
trough
38. An increase or decrease in consumer income will cause a shift in the Demand Curve.
unit elastic
business cycle
trough
consumer good
39. 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
marginal propensity to consume (MPC)
neutral good
expenditure approach
nominal GDP
40. The dollar value of production by a country's citizens.
law of supply
Marginal Propensity to Save (MPS)
Gross National Product
consumer surplus
41. The price of a domestic currency in terms of a foreign currency.
command economy
exchange rate
Gross Domestic Product
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
42. 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?
rule of 70
import quotas
diminishing marginal utility
demand elasticity
43. 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.
inferior good
stagflation
inflation
hyperinflation
44. The sum of all the quantities of a good supplies by all producers at each price.
peak
law of demand
national economic accounts
market supply curve
45. A shift of the demand curve resulting from a change in consumer taste and preferences.
hyperinflation
marginal propensity to consume (MPC)
cost-push inflation
consumer taste and preferences
46. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
demand elasticity
interest
number of composition of consumers
47. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
simple money multiplier
tariff
inelastic demand
48. 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.
law of supply
labor force
complimentary goods
disposable personal income
49. Period in which a recession becomes prolonged and deep - involving high unemployment.
labor force
depression
investment expenditures
interest
50. 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.
structural unemployment
demand-pull inflation
aggregate supply curve
law of supply