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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. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr
real GDP
scarcity
change in quantity demanded
economics
2. 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.
national economic accounts
perfectly elastic
inelastic demand
trough
3. A Latin phrase meaning 'all things constant.'
entrepreneurship
scarcity
microeconomics
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
4. 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.
price ceiling
elastic
Gross Domestic Product
aggregate demand curve
5. A shift of the demand curve resulting from a change in consumer taste and preferences.
perfectly elastic
money multiplier
aggregate supply curve
consumer taste and preferences
6. A special tax imposed on imported goods.
law of demand
national income (NI)
tariff
interest
7. 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
demand schedule
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of demand
Gross Domestic Product
8. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
trade deficit
money multiplier
substitution effect
rule of 70
9. The income earned by households and profits earned by firms after subtracting.
entrepreneurship
national income (NI)
individual choice
complimentary goods
10. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
macroeconomics
market supply curve
labor force
expansion
11. The dollar value of goods and services sold to governments.
price floor
marginal revenue
government expenditures
neutral good
12. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
purchasing power
Gross Domestic Product
substitution effect
13. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
marginal propensity to consume (MPC)
peak
consumer surplus
14. The study of scarcity and choice.
economics
structural unemployment
consumer good
expenditure approach
15. The effort of workers.
Labor
marginal revenue
fiscal policy
number of composition of consumers
16. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
inverse relationship
fiscal policy
neutral good
change in quantity demanded
17. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
SRAS curve
inelastic
microeconomics
market economy
18. The cost of something in terms of what one must give up to get it.
entrepreneurship
opportunity cost
microeconomics
elastic
19. 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.
demand curve
labor force
peak
entrepreneurship
20. Consumer income rise - demand will rise.
neutral good
hyperinflation
microeconomics
expansionary fiscal policy
21. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
number of composition of consumers
opportunity cost
changes in consumer expectations
exchange rate
22. The dollar value of all the goods and services sold to house holds.
consumption expenditures
hidden unemployment
trade deficit
neutral good
23. The transition point between economic recession and recovery.
trough
Gross Domestic Product
economic aggregates
scarcity
24. Short-run aggregate supply curve
consumer income rise
marginal revenue
structural unemployment
SRAS curve
25. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
Gross Domestic Product
consumer income rise
complimentary goods
trough
26. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
fiscal policy
A decrease in TR following an increase in price = elastic demand
demand elasticity
number of composition of consumers
27. The price of a domestic currency in terms of a foreign currency.
import quotas
exchange rate
unemployment rate
frictional unemployment
28. The willingness and ability of buyers to purchase a good or service.
demand
demand-pull inflation
labor force
simple money multiplier
29. Long- run aggregate supply curve
trade deficit
law of demand
investment expenditures
LRAS curv
30. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
national economic accounts
law of demand
scarce
marginal revenue
31. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
depreciation
Gross National Product
hyperinflation
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 curve shifts
consumer good
aggregate demand curve
Labor
33. A bad depressingly prolonged recession in economic activity.
exchange rate
recession
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
depression
34. 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).
cost-push inflation
command economy
business cycles
recession
35. The income of households after taxes have been paid
trade deficit
demand-pull inflation
law of demand
disposable personal income
36. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
rule of 70
Gross Domestic Product
normal good
37. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
complimentary goods
entrepreneurship
demand schedule
marginal propensity to consume (MPC)
38. 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
marginal propensity to consume (MPC)
complimentary goods
demand-pull inflation
39. Significantly responsive to a change in price.
demand-pull inflation
elastic
command economy
required reserve ratio (RRR)
40. Price control set when the market price is believed to be too high.
marginal propensity to consume (MPC)
demand-pull inflation
price ceiling
diminishing marginal utility
41. Real cost of an item is its opportunity cost.
diminishing marginal utility
opportunity cost
depression
nominal GDP
42. 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
expenditure approach
aggregate supply curve
trough
expansionary monetary policy
43. A relationship between two factors in which the factors move in the same direction.
normal good
elastic demand
direct relationship
rule of 70
44. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
purchasing power
diminishing marginal utility
tariff
trade surplus
45. A curve defining the relationship between real production and price level.
structural unemployment
aggregate supply curve
trade surplus
aggregate demand curve
46. The highest point of a business cycle.
peak
Gross National Product
oligopoly
frictional unemployment
47. A measure of the price level - or the average level of prices.
inferior good
price index
trough
individual choice
48. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
rule of 70
stagflation
opportunity cost
scarcity
49. 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
unemployed
tariff
Labor
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
50. Expenditure by businesses on plant and equipment and the change in business invention.
land
inverse relationship
marginal propensity to consume (MPC)
investment expenditures