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AP Macroeconomics
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Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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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. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
change in quantity demanded
consumer taste and preferences
scarcity
2. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
trough
exchange rate
consumer income rise
3. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trough
recession
consumer surplus
trade deficit
4. 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.
neutral good
Gross Domestic Product
price ceiling
inferior good
5. 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
land
opportunity cost
rule of 70
market supply curve
6. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand
A decrease in TR following an increase in price = elastic demand
opportunity cost
diminishing marginal utility
7. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
total revenue
law of demand
entrepreneurship
inverse relationship
8. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
inferior good
recession
macroeconomics
movement along a demand curve
9. 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
stagflation
monetary policy
rule of 70
nominal GDP
10. The income of households after taxes have been paid
business cycles
disposable personal income
perfectly elastic
fiscal policy
11. 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.
oligopoly
structural unemployment
microeconomics
inelastic demand
12. An industry structure in which there is only one seller for a product.
monopoly
neutral good
change in quantity demanded
number of composition of consumers
13. 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
expansionary monetary policy
market demand curve
monopoly
depreciation
14. 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.
consumer surplus
demand-pull inflation
price floor
entrepreneurship
15. The addition to total revenue created by selling one additional unit of ouput.
opportunity cost
trough
trough
marginal revenue
16. Short-run aggregate supply curve
expansionary monetary policy
SRAS curve
consumption expenditures
substitution effect
17. The lowest point of a business cycle
unemployed
inferior good
individual choice
trough
18. A bad depressingly prolonged recession in economic activity.
inflation
economics
depression
consumer surplus
19. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
inelastic
depression
expenditure approach
microeconomics
20. Rising prices - across the board.
cost-push inflation
scarcity
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inflation
21. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
economics
depression
complimentary goods
22. 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
demand
number of composition of consumers
disposable personal income
23. Price control set when the market price is believed to be too high.
price ceiling
frictional unemployment
unit elastic
trade surplus
24. The effort of workers.
tariff
exchange rate
Labor
demand-pull inflation
25. 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.
unemployment rate
oligopoly
A decrease in TR following an increase in price = elastic demand
government expenditures
26. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
Gross National Product
market supply curve
depression
macroeconomics
27. The long-run pattern of growth and recession.
import quotas
unemployment rate
monetary policy
business cycle
28. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
business cycle
substitution effect
hyperinflation
government expenditures
29. Price control set when the market price is believed to be too low.
price floor
consumer taste and preferences
demand curve shifts
oligopoly
30. The price of a domestic currency in terms of a foreign currency.
market economy
elastic demand
exchange rate
frictional unemployment
31. The dollar value of all the goods and services sold to house holds.
Labor
consumer income rise
nominal GDP
consumption expenditures
32. 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?
demand elasticity
consumption expenditures
import quotas
resource
33. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
money multiplier
changes in consumer expectations
economics
import quotas
34. The dollar value of production within a nation's border.
diminishing marginal utility
Gross Domestic Product
import quotas
number of composition of consumers
35. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
land
price floor
cyclical unemployment
consumer income rise
36. 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
elastic demand
law of demand
total revenue
price index
37. 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
demand-pull inflation
real GDP
Labor
trough
38. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
hyperinflation
market economy
inelastic demand
39. When the percent of change in the quantity demanded equals the percent of change in price.
demand
oligopoly
unit elastic
inflation
40. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
price ceiling
inflation
law of supply
recession
41. The dollar value of production by a country's citizens.
recession
demand curve shifts
labor force
Gross National Product
42. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
government expenditures
consumer taste and preferences
expenditure approach
demand curve
43. The willingness and ability of buyers to purchase a good or service.
demand
complimentary goods
expansion
exchange rate
44. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
tariff
opportunity cost
consumer surplus
market economy
45. Real cost of an item is its opportunity cost.
national economic accounts
market demand curve
demand schedule
opportunity cost
46. A Latin phrase meaning 'all things constant.'
money multiplier
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of demand
demand curve
47. Restrictions on the quantity of a good that can be imported
import quotas
A decrease in TR following an increase in price = elastic demand
nominal GDP
entrepreneurship
48. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
expansionary fiscal policy
tariff
national income (NI)
49. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
exchange rate
opportunity cost
price ceiling
law of demand
50. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
elastic
monopoly
expansion
expenditure approach
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