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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.
scarce
inflation
Marginal Propensity to Save (MPS)
Phillips curve
2. Short-run aggregate supply curve
total revenue
Labor
SRAS curve
demand
3. Significantly responsive to a change in price.
nominal GDP
law of demand
elastic
disposable personal income
4. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
consumer good
price ceiling
unemployed
5. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
consumption expenditures
market economy
macroeconomics
6. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
price ceiling
cyclical unemployment
consumer income rise
A decrease in TR following an increase in price = elastic demand
7. 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.
direct relationship
investment expenditures
economic aggregates
labor force
8. Decisions by individuals about what to do and what not to do.
individual choice
change in quantity demanded
law of demand
demand-pull inflation
9. 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
exchange rate
microeconomics
real GDP
expansionary fiscal policy
10. 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).
recession
expansionary fiscal policy
real GDP
expenditure approach
11. The dollar value of all the goods and services sold to house holds.
Labor
interest
consumption expenditures
unemployed
12. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
required reserve ratio (RRR)
market demand curve
expansion
price floor
13. The transition point between economic recession and recovery.
normal good
diminishing marginal utility
consumption expenditures
trough
14. A relationship between two factors in which the factors move in the same direction.
hyperinflation
neutral good
direct relationship
market demand curve
15. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
price ceiling
market equilibrium
simple money multiplier
scarce
16. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
stagflation
A decrease in TR following an increase in price = elastic demand
national income (NI)
price floor
17. The sum of all the quantities of a good supplies by all producers at each price.
Phillips curve
interest
market supply curve
consumption expenditures
18. A bad depressingly prolonged recession in economic activity.
oligopoly
depression
demand curve
unemployment rate
19. Not significantly responsive to changes in price.
national income (NI)
stagflation
inelastic
frictional unemployment
20. 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.
demand curve
law of supply
inflation
LRAS curv
21. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
number of composition of consumers
trade deficit
money multiplier
investment expenditures
22. 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.
aggregate supply curve
complimentary goods
Labor
elastic demand
23. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
price index
A decrease in TR following an increase in price = elastic demand
changes in consumer expectations
market demand curve
24. The payment that capital receives in the factor market.
disposable personal income
A decrease in TR following an increase in price = elastic demand
demand-pull inflation
interest
25. 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.
hidden unemployment
change in quantity demanded
depression
cost-push inflation
26. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
LRAS curv
frictional unemployment
depreciation
27. Fluctuations in real GDP around the trend value; also called economic fluctuations.
trough
marginal revenue
direct relationship
business cycles
28. 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 schedule
unit elastic
demand curve shifts
interest
29. The proportion of each additional dollar of income that is saved.
neutral good
inverse relationship
fiscal policy
Marginal Propensity to Save (MPS)
30. Real cost of an item is its opportunity cost.
real GDP
trough
expansion
opportunity cost
31. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
demand-pull inflation
law of supply
susbtitute goods
depression
32. Anything that can be used to produce something else
demand-pull inflation
resource
aggregate supply curve
depression
33. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
law of demand
marginal revenue
expenditure approach
land
34. 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.
perfectly elastic
consumption expenditures
investment expenditures
hyperinflation
35. 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.
aggregate demand curve
substitution effect
oligopoly
business cycles
36. An increase in the price level
entrepreneurship
hyperinflation
scarcity
inflation
37. (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.
consumer surplus
exchange rate
number of composition of consumers
Phillips curve
38. The amount of a good actually sold.
quantity exchanged
scarce
Phillips curve
expansionary fiscal policy
39. The deliberate control of the money supply by the Federal government.
monetary policy
national economic accounts
inverse relationship
simple money multiplier
40. 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
hyperinflation
trade deficit
nominal GDP
rule of 70
41. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
microeconomics
hyperinflation
import quotas
demand curve
42. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
inelastic demand
required reserve ratio (RRR)
consumption expenditures
complimentary goods
43. 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?
trough
market supply curve
tariff
demand elasticity
44. 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.
SRAS curve
demand schedule
direct relationship
inflation
45. Goods that go together - if price ? the demand for both that good and complimentary good ?.
consumer taste and preferences
complimentary goods
depreciation
depression
46. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
consumer taste and preferences
market demand curve
trade deficit
demand-pull inflation
47. A curve defining the relationship between real production and price level.
interest
marginal revenue
command economy
aggregate supply curve
48. 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.
A decrease in TR following an increase in price = elastic demand
elastic demand
economic aggregates
demand-pull inflation
49. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
trade deficit
market economy
hidden unemployment
normal good
50. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
number of composition of consumers
cyclical unemployment
changes in consumer expectations