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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. Decisions by individuals about what to do and what not to do.
individual choice
tariff
consumer taste and preferences
opportunity cost
2. Fluctuations in real GDP around the trend value; also called economic fluctuations.
total revenue
business cycle
unit elastic
business cycles
3. 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?
complimentary goods
demand elasticity
A decrease in TR following an increase in price = elastic demand
economic aggregates
4. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
SRAS curve
economic aggregates
price ceiling
5. (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.
movement along a demand curve
Gross National Product
number of composition of consumers
Gross Domestic Product
6. Anything that can be used to produce something else
expenditure approach
inflation
resource
fiscal policy
7. 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.
simple money multiplier
demand schedule
demand elasticity
scarce
8. A special tax imposed on imported goods.
consumer surplus
expansion
hidden unemployment
tariff
9. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
peak
government expenditures
demand schedule
Phillips curve
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.
law of demand
frictional unemployment
trough
simple money multiplier
11. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
unemployed
expenditure approach
unit elastic
national income (NI)
12. The income of households after taxes have been paid
cost-push inflation
quantity exchanged
microeconomics
disposable personal income
13. Goods that go together - if price ? the demand for both that good and complimentary good ?.
government expenditures
market demand curve
unemployed
complimentary goods
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).
number of composition of consumers
cost-push inflation
money multiplier
disposable personal income
15. Not significantly responsive to changes in price.
peak
investment expenditures
inelastic
change in quantity demanded
16. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
perfectly elastic
fiscal policy
Marginal Propensity to Save (MPS)
17. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
nominal GDP
demand curve shifts
number of composition of consumers
money multiplier
18. The study of scarcity and choice.
consumer good
consumer surplus
economics
normal good
19. 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.
consumer income rise
unemployed
expenditure approach
perfectly elastic
20. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
money multiplier
LRAS curv
cost-push inflation
21. 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.
nominal GDP
fiscal policy
aggregate demand curve
oligopoly
22. The lowest point of a business cycle
labor force
trough
recession
demand curve
23. 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.
hyperinflation
oligopoly
perfectly elastic
neutral good
24. Government officials make decisions about economy.
opportunity cost
command economy
Phillips curve
monetary policy
25. 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
land
expansionary fiscal policy
economic aggregates
26. 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.
hidden unemployment
demand-pull inflation
depreciation
elastic demand
27. 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.
SRAS curve
labor force
price ceiling
land
28. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
macroeconomics
trough
depreciation
law of supply
29. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
Gross Domestic Product
inverse relationship
inflation
government expenditures
30. A measure of the price level - or the average level of prices.
marginal revenue
number of composition of consumers
price index
microeconomics
31. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
labor force
market supply curve
inelastic
32. Rising prices - across the board.
cyclical unemployment
inflation
changes in consumer expectations
elastic
33. 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
individual choice
elastic
law of supply
law of demand
34. 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.
interest
expenditure approach
stagflation
import quotas
35. The payment that capital receives in the factor market.
market demand curve
opportunity cost
interest
business cycles
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.
microeconomics
import quotas
individual choice
simple money multiplier
37. The effort of workers.
market supply curve
substitution effect
Labor
interest
38. The proportion of each additional dollar of income that is saved.
depression
expenditure approach
Marginal Propensity to Save (MPS)
law of demand
39. The transition point between economic recession and recovery.
disposable personal income
inelastic demand
price floor
trough
40. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
purchasing power
disposable personal income
required reserve ratio (RRR)
cost-push inflation
41. Anything that shows the economy as a whole.
price ceiling
unit elastic
economic aggregates
consumer surplus
42. When the percent of change in the quantity demanded equals the percent of change in price.
trough
unit elastic
macroeconomics
consumption expenditures
43. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
demand curve
movement along a demand curve
recession
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
44. 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).
total revenue
expansionary fiscal policy
monopoly
inelastic demand
45. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
Labor
interest
demand curve
trough
46. Real cost of an item is its opportunity cost.
depression
disposable personal income
opportunity cost
business cycle
47. An industry structure in which there is only one seller for a product.
monopoly
recession
Gross Domestic Product
elastic
48. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
business cycles
law of demand
unemployed
Phillips curve
49. 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).
unemployment rate
tariff
normal good
fiscal policy
50. Expenditure by businesses on plant and equipment and the change in business invention.
inelastic
elastic
investment expenditures
aggregate demand curve