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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. 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 curve
structural unemployment
law of demand
demand-pull inflation
2. 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.
expansionary fiscal policy
hidden unemployment
law of supply
inverse relationship
3. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
market economy
hyperinflation
scarce
Phillips curve
4. 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
quantity exchanged
individual choice
nominal GDP
Gross National Product
5. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
marginal propensity to consume (MPC)
Phillips curve
inverse relationship
national economic accounts
6. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
demand curve
monopoly
national economic accounts
consumer income rise
7. Long- run aggregate supply curve
LRAS curv
trade surplus
change in quantity demanded
economics
8. Anything that shows the economy as a whole.
monetary policy
oligopoly
economic aggregates
exchange rate
9. 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
consumer taste and preferences
national economic accounts
hyperinflation
10. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
diminishing marginal utility
labor force
expenditure approach
required reserve ratio (RRR)
11. 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
normal good
complimentary goods
price ceiling
12. The payment that capital receives in the factor market.
aggregate supply curve
national income (NI)
interest
normal good
13. The sum of all the quantities of a good supplies by all producers at each price.
recession
changes in consumer expectations
consumer good
market supply curve
14. 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).
scarce
cost-push inflation
monopoly
diminishing marginal utility
15. A shift of the demand curve resulting from a change in consumer taste and preferences.
trough
price index
consumption expenditures
consumer taste and preferences
16. Significantly responsive to a change in price.
rule of 70
tariff
trade surplus
elastic
17. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
movement along a demand curve
scarcity
government expenditures
total revenue
18. 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.
expansionary fiscal policy
direct relationship
consumption expenditures
structural unemployment
19. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount
import quotas
unemployment rate
expansionary monetary policy
direct relationship
20. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
cyclical unemployment
stagflation
normal good
demand curve shifts
21. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
command economy
LRAS curv
entrepreneurship
aggregate demand curve
22. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
opportunity cost
frictional unemployment
diminishing marginal utility
expansion
23. The amount of money available to consumers to purchase goods and services.
consumption expenditures
inelastic
law of demand
purchasing power
24. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
investment expenditures
marginal revenue
tariff
25. The cost of something in terms of what one must give up to get it.
required reserve ratio (RRR)
perfectly elastic
opportunity cost
price floor
26. 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).
cyclical unemployment
unemployment rate
rule of 70
elastic
27. 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?
demand elasticity
individual choice
law of demand
opportunity cost
28. The willingness and ability of buyers to purchase a good or service.
demand
recession
expansionary monetary policy
national economic accounts
29. 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
elastic demand
Gross Domestic Product
demand curve shifts
30. 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.
substitution effect
oligopoly
trade surplus
demand
31. A curve defining the relationship between real production and price level.
labor force
aggregate supply curve
national income (NI)
demand curve
32. 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.
monetary policy
change in quantity demanded
national economic accounts
interest
33. 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
unemployment rate
depression
required reserve ratio (RRR)
34. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
law of demand
complimentary goods
demand elasticity
national economic accounts
35. 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.
purchasing power
cyclical unemployment
simple money multiplier
expansion
36. The dollar value of production by a country's citizens.
trough
Gross National Product
national economic accounts
law of demand
37. The highest point of a business cycle.
perfectly elastic
fiscal policy
Gross Domestic Product
peak
38. 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
scarce
trough
quantity exchanged
39. 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.
demand curve shifts
aggregate demand curve
diminishing marginal utility
Marginal Propensity to Save (MPS)
40. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
unit elastic
market economy
land
SRAS curve
41. Anything that can be used to produce something else
SRAS curve
marginal propensity to consume (MPC)
resource
demand schedule
42. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
consumer taste and preferences
disposable personal income
peak
43. 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.
peak
microeconomics
rule of 70
government expenditures
44. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
investment expenditures
unemployment rate
expansionary fiscal policy
depreciation
45. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
diminishing marginal utility
disposable personal income
susbtitute goods
46. 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
Labor
movement along a demand curve
opportunity cost
47. 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
market economy
law of demand
opportunity cost
demand curve
48. The transition point between economic recession and recovery.
money multiplier
trough
market equilibrium
real GDP
49. Consumer income rise - demand will rise.
consumer surplus
hyperinflation
required reserve ratio (RRR)
neutral good
50. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
number of composition of consumers
macroeconomics
trade surplus