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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.
price floor
inelastic demand
demand-pull inflation
tariff
2. The effort of workers.
Gross Domestic Product
unemployment rate
simple money multiplier
Labor
3. Significantly responsive to a change in price.
economic aggregates
elastic
scarce
Labor
4. An increase or decrease in consumer income will cause a shift in the Demand Curve.
law of supply
trough
consumer good
cost-push inflation
5. An increase in the price level
interest
changes in consumer expectations
inflation
depreciation
6. 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
Gross National Product
price floor
inflation
7. 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
macroeconomics
consumer income rise
monopoly
8. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
investment expenditures
government expenditures
consumer income rise
9. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
opportunity cost
opportunity cost
market supply curve
10. A bad depressingly prolonged recession in economic activity.
opportunity cost
depression
changes in consumer expectations
elastic demand
11. 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.
Gross National Product
law of supply
unemployment rate
oligopoly
12. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
elastic
consumer income rise
changes in consumer expectations
entrepreneurship
13. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
complimentary goods
unemployment rate
depreciation
money multiplier
14. The transition point between economic recession and recovery.
inverse relationship
trough
import quotas
monopoly
15. 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.
recession
hyperinflation
price ceiling
inelastic demand
16. 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).
economics
number of composition of consumers
trough
cost-push inflation
17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
national economic accounts
depression
expansionary fiscal policy
18. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
expansionary monetary policy
exchange rate
diminishing marginal utility
consumer income rise
19. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
monopoly
cost-push inflation
structural unemployment
20. Expenditure by businesses on plant and equipment and the change in business invention.
demand schedule
investment expenditures
changes in consumer expectations
tariff
21. Not significantly responsive to changes in price.
economics
inelastic demand
inelastic
expansionary fiscal policy
22. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
consumer taste and preferences
Phillips curve
demand schedule
unemployment rate
23. The addition to total revenue created by selling one additional unit of ouput.
national income (NI)
marginal revenue
expenditure approach
LRAS curv
24. Long- run aggregate supply curve
substitution effect
demand curve shifts
LRAS curv
required reserve ratio (RRR)
25. 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.
land
demand-pull inflation
aggregate supply curve
monopoly
26. 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.
demand elasticity
labor force
substitution effect
business cycle
27. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
scarce
demand curve
demand elasticity
business cycles
28. 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
peak
SRAS curve
government expenditures
29. An industry structure in which there is only one seller for a product.
monopoly
demand
elastic demand
total revenue
30. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
demand
depression
expenditure approach
law of demand
31. Restrictions on the quantity of a good that can be imported
import quotas
market economy
market equilibrium
cost-push inflation
32. 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
required reserve ratio (RRR)
demand schedule
import quotas
33. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
marginal propensity to consume (MPC)
depression
trade surplus
34. Rising prices - across the board.
rule of 70
LRAS curv
inflation
fiscal policy
35. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
marginal propensity to consume (MPC)
trade deficit
normal good
microeconomics
36. 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
law of supply
total revenue
37. 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.
structural unemployment
market equilibrium
exchange rate
national economic accounts
38. 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
scarce
exchange rate
trade deficit
39. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
depression
diminishing marginal utility
hyperinflation
changes in consumer expectations
40. The dollar value of goods and services sold to governments.
trough
government expenditures
expansion
substitution effect
41. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
price index
land
opportunity cost
Gross National Product
42. The cost of something in terms of what one must give up to get it.
demand curve shifts
real GDP
opportunity cost
demand curve
43. 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.
simple money multiplier
business cycle
demand
law of demand
44. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
business cycles
expansion
SRAS curve
45. The payment that capital receives in the factor market.
change in quantity demanded
land
price floor
interest
46. The willingness and ability of buyers to purchase a good or service.
depreciation
interest
consumer good
demand
47. Anything that shows the economy as a whole.
trough
SRAS curve
Gross Domestic Product
economic aggregates
48. Period in which a recession becomes prolonged and deep - involving high unemployment.
inelastic demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
structural unemployment
depression
49. Real cost of an item is its opportunity cost.
consumer taste and preferences
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
peak
50. Goods that go together - if price ? the demand for both that good and complimentary good ?.
nominal GDP
simple money multiplier
complimentary goods
national economic accounts