SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. Expenditure by businesses on plant and equipment and the change in business invention.
elastic demand
recession
investment expenditures
hyperinflation
2. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
price ceiling
trade surplus
money multiplier
oligopoly
3. The effort of workers.
unemployed
command economy
Labor
market equilibrium
4. 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).
expansionary monetary policy
simple money multiplier
A decrease in TR following an increase in price = elastic demand
market demand curve
5. 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.
expansion
change in quantity demanded
expansionary monetary policy
consumption expenditures
6. The dollar value of production by a country's citizens.
price floor
frictional unemployment
trough
Gross National Product
7. Significantly responsive to a change in price.
inelastic demand
business cycles
elastic
cyclical unemployment
8. The dollar value of goods and services sold to governments.
interest
government expenditures
structural unemployment
land
9. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
expenditure approach
depression
economics
10. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
resource
movement along a demand curve
consumption expenditures
11. A bad depressingly prolonged recession in economic activity.
depression
changes in consumer expectations
import quotas
trade deficit
12. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
quantity exchanged
fiscal policy
inferior good
13. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
inelastic
scarce
changes in consumer expectations
nominal GDP
14. 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.
command economy
stagflation
A decrease in TR following an increase in price = elastic demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
15. 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.
inverse relationship
demand
demand-pull inflation
inelastic
16. The income of households after taxes have been paid
disposable personal income
inferior good
law of supply
expansionary fiscal policy
17. 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
rule of 70
perfectly elastic
marginal propensity to consume (MPC)
microeconomics
18. An industry structure in which there is only one seller for a product.
purchasing power
monopoly
simple money multiplier
susbtitute goods
19. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
demand schedule
scarcity
nominal GDP
peak
20. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
inferior good
money multiplier
susbtitute goods
demand curve
21. 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.
consumer surplus
monetary policy
trade surplus
structural unemployment
22. 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.
individual choice
expansionary monetary policy
number of composition of consumers
perfectly elastic
23. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
required reserve ratio (RRR)
hyperinflation
law of supply
business cycles
24. A curve defining the relationship between real production and price level.
aggregate supply curve
cost-push inflation
demand schedule
demand
25. A measure of the price level - or the average level of prices.
peak
scarcity
price index
consumption expenditures
26. Restrictions on the quantity of a good that can be imported
aggregate supply curve
diminishing marginal utility
marginal revenue
import quotas
27. The addition to total revenue created by selling one additional unit of ouput.
law of supply
quantity exchanged
national economic accounts
marginal revenue
28. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
consumer income rise
number of composition of consumers
expansion
consumer good
29. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
national income (NI)
marginal propensity to consume (MPC)
total revenue
demand elasticity
30. Consumer income rise - demand will rise.
neutral good
direct relationship
entrepreneurship
depression
31. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.
A decrease in TR following an increase in price = elastic demand
depression
law of demand
elastic demand
32. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
neutral good
total revenue
business cycle
33. The transition point between economic recession and recovery.
inflation
demand curve shifts
price ceiling
trough
34. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
trough
price ceiling
national income (NI)
35. The lowest point of a business cycle
Gross National Product
entrepreneurship
trough
economics
36. 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.
land
inelastic demand
recession
Gross National Product
37. The sum of all the quantities of a good supplies by all producers at each price.
market equilibrium
market economy
market supply curve
unit elastic
38. The payment that capital receives in the factor market.
scarce
trough
neutral good
interest
39. An increase in the price level
inflation
investment expenditures
macroeconomics
Labor
40. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
marginal propensity to consume (MPC)
complimentary goods
change in quantity demanded
41. 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.
demand schedule
entrepreneurship
trade surplus
diminishing marginal utility
42. The amount of money available to consumers to purchase goods and services.
purchasing power
investment expenditures
expansionary monetary policy
nominal GDP
43. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
normal good
consumption expenditures
change in quantity demanded
macroeconomics
44. 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.
susbtitute goods
unemployment rate
simple money multiplier
national economic accounts
45. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
marginal propensity to consume (MPC)
demand-pull inflation
required reserve ratio (RRR)
46. A Latin phrase meaning 'all things constant.'
peak
elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
fiscal policy
47. The long-run pattern of growth and recession.
direct relationship
movement along a demand curve
business cycle
A decrease in TR following an increase in price = elastic demand
48. Government officials make decisions about economy.
command economy
inelastic demand
demand curve
money multiplier
49. Short-run aggregate supply curve
inflation
SRAS curve
demand-pull inflation
economics
50. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
stagflation
oligopoly
demand schedule
trade surplus