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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. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
tariff
depreciation
susbtitute goods
trough
2. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
trade surplus
diminishing marginal utility
expansionary fiscal policy
cost-push inflation
3. 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.
hidden unemployment
trough
labor force
elastic
4. The deliberate control of the money supply by the Federal government.
command economy
LRAS curv
monetary policy
law of demand
5. The dollar value of goods and services sold to governments.
inflation
oligopoly
price ceiling
government expenditures
6. Period in which a recession becomes prolonged and deep - involving high unemployment.
inferior good
depression
perfectly elastic
business cycle
7. Rising prices - across the board.
inflation
trade deficit
LRAS curv
required reserve ratio (RRR)
8. 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.
market economy
demand curve shifts
expansionary fiscal policy
recession
9. A bad depressingly prolonged recession in economic activity.
complimentary goods
economic aggregates
depression
Marginal Propensity to Save (MPS)
10. 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
recession
peak
interest
nominal GDP
11. The willingness and ability of buyers to purchase a good or service.
investment expenditures
demand
labor force
demand-pull inflation
12. Restrictions on the quantity of a good that can be imported
import quotas
complimentary goods
demand curve
price index
13. The amount of a good actually sold.
quantity exchanged
movement along a demand curve
demand elasticity
elastic demand
14. Short-run aggregate supply curve
trough
A decrease in TR following an increase in price = elastic demand
SRAS curve
inelastic
15. 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
investment expenditures
rule of 70
fiscal policy
perfectly elastic
16. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
Marginal Propensity to Save (MPS)
susbtitute goods
opportunity cost
inverse relationship
17. 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.
perfectly elastic
nominal GDP
expansionary fiscal policy
change in quantity demanded
18. 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.
law of demand
cost-push inflation
inelastic demand
import quotas
19. The dollar value of all the goods and services sold to house holds.
import quotas
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumption expenditures
scarce
20. 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.
labor force
structural unemployment
recession
expansionary monetary policy
21. The sum of all the quantities of a good supplies by all producers at each price.
changes in consumer expectations
market supply curve
disposable personal income
elastic demand
22. The highest point of a business cycle.
peak
depreciation
expansionary fiscal policy
market demand curve
23. The effort of workers.
expenditure approach
business cycles
Marginal Propensity to Save (MPS)
Labor
24. Not significantly responsive to changes in price.
disposable personal income
inelastic
oligopoly
Marginal Propensity to Save (MPS)
25. Goods that go together - if price ? the demand for both that good and complimentary good ?.
trade surplus
opportunity cost
complimentary goods
depreciation
26. The long-run pattern of growth and recession.
market equilibrium
unemployment rate
business cycle
monetary policy
27. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
scarcity
money multiplier
cyclical unemployment
tariff
28. 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.
LRAS curv
demand elasticity
structural unemployment
number of composition of consumers
29. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
substitution effect
real GDP
market demand curve
law of demand
30. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
frictional unemployment
hyperinflation
trade surplus
diminishing marginal utility
31. The study of scarcity and choice.
economics
peak
interest
real GDP
32. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
purchasing power
tariff
changes in consumer expectations
price floor
33. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
opportunity cost
movement along a demand curve
interest
demand elasticity
34. The transition point between economic recession and recovery.
import quotas
SRAS curve
trough
demand
35. 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?
interest
demand elasticity
SRAS curve
hyperinflation
36. When the percent of change in the quantity demanded equals the percent of change in price.
required reserve ratio (RRR)
movement along a demand curve
elastic
unit elastic
37. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
aggregate supply curve
business cycles
aggregate demand curve
A decrease in TR following an increase in price = elastic demand
38. 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.
marginal revenue
change in quantity demanded
import quotas
recession
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.
total revenue
aggregate supply curve
required reserve ratio (RRR)
depreciation
40. Consumer income rise - demand will rise.
market equilibrium
demand curve shifts
price index
neutral good
41. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
Gross National Product
diminishing marginal utility
expenditure approach
hyperinflation
42. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
hidden unemployment
Phillips curve
unemployment rate
entrepreneurship
43. 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
national economic accounts
expansionary monetary policy
expansionary fiscal policy
nominal GDP
44. Price control set when the market price is believed to be too high.
stagflation
A decrease in TR following an increase in price = elastic demand
price ceiling
complimentary goods
45. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
Gross Domestic Product
LRAS curv
purchasing power
consumer surplus
46. 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.
inelastic
hyperinflation
law of demand
consumer surplus
47. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarcity
land
market demand curve
monopoly
48. A curve defining the relationship between real production and price level.
unemployment rate
elastic
opportunity cost
aggregate supply curve
49. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
depression
demand curve
disposable personal income
50. Real cost of an item is its opportunity cost.
demand schedule
opportunity cost
susbtitute goods
entrepreneurship