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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 amount of a good actually sold.
structural unemployment
quantity exchanged
Labor
market demand curve
2. The price of a domestic currency in terms of a foreign currency.
economics
stagflation
exchange rate
expansionary fiscal policy
3. 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.
Marginal Propensity to Save (MPS)
susbtitute goods
law of demand
perfectly elastic
4. Government officials make decisions about economy.
stagflation
command economy
aggregate supply curve
demand elasticity
5. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
complimentary goods
cost-push inflation
business cycles
scarce
6. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
fiscal policy
trough
inelastic demand
depreciation
7. Anything that can be used to produce something else
Gross Domestic Product
resource
inelastic demand
Gross National Product
8. Price control set when the market price is believed to be too low.
price floor
import quotas
business cycle
inelastic
9. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
hidden unemployment
law of demand
expansionary monetary policy
macroeconomics
10. Price control set when the market price is believed to be too high.
SRAS curve
peak
import quotas
price ceiling
11. 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.
inelastic demand
simple money multiplier
investment expenditures
depression
12. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer good
macroeconomics
Phillips curve
consumer income rise
13. 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).
inflation
unemployment rate
normal good
law of demand
14. A curve defining the relationship between real production and price level.
perfectly elastic
tariff
Phillips curve
aggregate supply curve
15. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inverse relationship
national economic accounts
fiscal policy
16. The highest point of a business cycle.
expansion
demand curve
peak
price ceiling
17. 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).
recession
cost-push inflation
command economy
law of supply
18. 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
neutral good
diminishing marginal utility
unemployed
demand elasticity
19. Long- run aggregate supply curve
LRAS curv
depreciation
consumer income rise
inflation
20. 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
elastic
purchasing power
law of demand
rule of 70
21. A shift of the demand curve resulting from a change in consumer taste and preferences.
price ceiling
elastic demand
consumer taste and preferences
demand curve shifts
22. An increase in the price level
inflation
import quotas
trough
consumer surplus
23. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
complimentary goods
unit elastic
opportunity cost
24. A measure of the price level - or the average level of prices.
trough
business cycles
changes in consumer expectations
price index
25. 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
expansionary monetary policy
frictional unemployment
demand schedule
scarcity
26. The study of scarcity and choice.
market supply curve
law of supply
economics
law of demand
27. The payment that capital receives in the factor market.
interest
price index
law of demand
hyperinflation
28. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
normal good
money multiplier
aggregate supply curve
national economic accounts
29. 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.
microeconomics
Labor
inferior good
opportunity cost
30. The lowest point of a business cycle
trough
oligopoly
price floor
peak
31. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
economic aggregates
recession
trade surplus
monetary policy
32. The effort of workers.
stagflation
depression
Labor
economics
33. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
command economy
national economic accounts
elastic demand
perfectly elastic
34. The long-run pattern of growth and recession.
SRAS curve
movement along a demand curve
price floor
business cycle
35. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
trade surplus
change in quantity demanded
cyclical unemployment
36. 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.
national economic accounts
market equilibrium
microeconomics
peak
37. 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
unemployed
inflation
demand schedule
nominal GDP
38. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.
price ceiling
Labor
law of demand
demand schedule
39. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
demand
inflation
national economic accounts
required reserve ratio (RRR)
40. 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)
Marginal Propensity to Save (MPS)
aggregate demand curve
41. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
price index
market economy
elastic
demand curve
42. The addition to total revenue created by selling one additional unit of ouput.
inelastic
marginal revenue
economics
price index
43. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
national income (NI)
business cycles
demand curve
consumer surplus
44. 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
hidden unemployment
cost-push inflation
market economy
45. Consumer income rise - demand will rise.
macroeconomics
market economy
neutral good
frictional unemployment
46. The income earned by households and profits earned by firms after subtracting.
national income (NI)
macroeconomics
complimentary goods
market equilibrium
47. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
unit elastic
exchange rate
real GDP
substitution effect
48. Restrictions on the quantity of a good that can be imported
import quotas
inflation
interest
diminishing marginal utility
49. The proportion of each additional dollar of income that is saved.
demand schedule
Marginal Propensity to Save (MPS)
perfectly elastic
import quotas
50. 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.
economics
demand-pull inflation
economic aggregates
aggregate demand curve