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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. Rising prices - across the board.
economics
neutral good
individual choice
inflation
2. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
depression
scarce
expansionary fiscal policy
inverse relationship
3. Significantly responsive to a change in price.
marginal revenue
purchasing power
movement along a demand curve
elastic
4. The long-run pattern of growth and recession.
oligopoly
law of demand
business cycle
inverse relationship
5. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
cost-push inflation
opportunity cost
inflation
demand curve
6. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
rule of 70
changes in consumer expectations
price floor
fiscal policy
7. The deliberate control of the money supply by the Federal government.
normal good
monetary policy
business cycle
cyclical unemployment
8. 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.
inflation
expansionary fiscal policy
trough
elastic demand
9. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
Gross National Product
structural unemployment
trade deficit
purchasing power
10. 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
real GDP
economic aggregates
macroeconomics
11. 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.
aggregate demand curve
price index
inelastic demand
oligopoly
12. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
aggregate demand curve
entrepreneurship
monopoly
depression
13. Real cost of an item is its opportunity cost.
consumer surplus
opportunity cost
changes in consumer expectations
nominal GDP
14. The dollar value of goods and services sold to governments.
recession
government expenditures
law of demand
monetary policy
15. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
national economic accounts
demand curve
direct relationship
16. Price control set when the market price is believed to be too high.
unemployment rate
substitution effect
oligopoly
price ceiling
17. 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.
economics
diminishing marginal utility
change in quantity demanded
marginal propensity to consume (MPC)
18. 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.
Marginal Propensity to Save (MPS)
disposable personal income
aggregate demand curve
stagflation
19. 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.
government expenditures
microeconomics
demand curve shifts
hidden unemployment
20. The highest point of a business cycle.
SRAS curve
total revenue
trough
peak
21. A bad depressingly prolonged recession in economic activity.
individual choice
depression
demand schedule
opportunity cost
22. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
frictional unemployment
scarcity
total revenue
money multiplier
23. 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.
price ceiling
Labor
demand-pull inflation
microeconomics
24. The payment that capital receives in the factor market.
consumer surplus
Marginal Propensity to Save (MPS)
depression
interest
25. 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.
price ceiling
law of supply
Gross Domestic Product
inferior good
26. 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.
hyperinflation
market demand curve
simple money multiplier
law of demand
27. 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.
law of supply
neutral good
perfectly elastic
monopoly
28. The dollar value of all the goods and services sold to house holds.
consumption expenditures
national economic accounts
changes in consumer expectations
depreciation
29. The willingness and ability of buyers to purchase a good or service.
scarce
peak
demand
import quotas
30. The cost of something in terms of what one must give up to get it.
opportunity cost
marginal propensity to consume (MPC)
cyclical unemployment
scarcity
31. The amount of a good actually sold.
quantity exchanged
land
demand
market supply curve
32. 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-pull inflation
inelastic
nominal GDP
demand curve shifts
33. Restrictions on the quantity of a good that can be imported
nominal GDP
command economy
demand-pull inflation
import quotas
34. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
demand-pull inflation
expansionary monetary policy
business cycle
35. Price control set when the market price is believed to be too low.
real GDP
change in quantity demanded
disposable personal income
price floor
36. A special tax imposed on imported goods.
inelastic
LRAS curv
macroeconomics
tariff
37. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
investment expenditures
recession
A decrease in TR following an increase in price = elastic demand
consumer taste and preferences
38. A relationship between two factors in which the factors move in the same direction.
direct relationship
economics
quantity exchanged
import quotas
39. The dollar value of production within a nation's border.
hidden unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
opportunity cost
Gross Domestic Product
40. Long- run aggregate supply curve
simple money multiplier
LRAS curv
susbtitute goods
import quotas
41. Anything that shows the economy as a whole.
unemployed
expansionary fiscal policy
substitution effect
economic aggregates
42. The effort of workers.
Labor
aggregate supply curve
monopoly
government expenditures
43. Expenditure by businesses on plant and equipment and the change in business invention.
marginal propensity to consume (MPC)
demand
investment expenditures
Gross National Product
44. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
simple money multiplier
scarcity
Marginal Propensity to Save (MPS)
LRAS curv
45. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
demand
quantity exchanged
price index
trade surplus
46. Decisions by individuals about what to do and what not to do.
market demand curve
economics
inverse relationship
individual choice
47. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.
number of composition of consumers
hyperinflation
elastic demand
market economy
48. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
labor force
direct relationship
market economy
49. 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
oligopoly
diminishing marginal utility
demand elasticity
50. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
depression
business cycle
purchasing power
expansion