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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. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
disposable personal income
price index
direct relationship
2. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
individual choice
price ceiling
total revenue
changes in consumer expectations
3. (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
land
price ceiling
import quotas
4. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
entrepreneurship
fiscal policy
business cycles
aggregate supply curve
5. A shift of the demand curve resulting from a change in consumer taste and preferences.
required reserve ratio (RRR)
national economic accounts
inverse relationship
consumer taste and preferences
6. Government officials make decisions about economy.
command economy
resource
trough
inelastic demand
7. The highest point of a business cycle.
depression
law of demand
peak
fiscal policy
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.
elastic demand
monopoly
national economic accounts
resource
9. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
demand-pull inflation
business cycle
entrepreneurship
money multiplier
10. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
resource
purchasing power
law of demand
market economy
11. Period in which a recession becomes prolonged and deep - involving high unemployment.
expansion
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
depression
trough
12. 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.
consumer good
total revenue
aggregate demand curve
susbtitute goods
13. A bad depressingly prolonged recession in economic activity.
structural unemployment
depression
consumer income rise
expansion
14. 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.
law of supply
A decrease in TR following an increase in price = elastic demand
simple money multiplier
cyclical unemployment
15. A relationship between two factors in which the factors move in the same direction.
peak
expansion
inelastic
direct relationship
16. The amount of a good actually sold.
cost-push inflation
quantity exchanged
complimentary goods
real GDP
17. Long- run aggregate supply curve
LRAS curv
microeconomics
simple money multiplier
demand curve
18. 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.
inflation
scarce
normal good
microeconomics
19. The dollar value of goods and services sold to governments.
government expenditures
unit elastic
microeconomics
price ceiling
20. 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
aggregate supply curve
interest
number of composition of consumers
expansionary monetary policy
21. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
depreciation
A decrease in TR following an increase in price = elastic demand
aggregate supply curve
direct relationship
22. An increase in the price level
inflation
expenditure approach
simple money multiplier
Labor
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.
rule of 70
interest
market supply curve
oligopoly
24. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.
Phillips curve
inelastic demand
inelastic
elastic demand
25. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
law of demand
LRAS curv
law of supply
26. The long-run pattern of growth and recession.
depression
business cycle
peak
direct relationship
27. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
inflation
consumer income rise
law of demand
money multiplier
28. 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.
inverse relationship
frictional unemployment
elastic demand
opportunity cost
29. Price control set when the market price is believed to be too low.
aggregate supply curve
market demand curve
price floor
number of composition of consumers
30. 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
A decrease in TR following an increase in price = elastic demand
demand-pull inflation
monopoly
rule of 70
31. The amount of money available to consumers to purchase goods and services.
purchasing power
import quotas
unit elastic
scarce
32. 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).
market demand curve
opportunity cost
hyperinflation
expansionary monetary policy
33. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
diminishing marginal utility
entrepreneurship
scarce
trade deficit
34. The addition to total revenue created by selling one additional unit of ouput.
trough
marginal revenue
stagflation
nominal GDP
35. The proportion of each additional dollar of income that will go toward consumption expenditures.
depreciation
purchasing power
microeconomics
marginal propensity to consume (MPC)
36. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
opportunity cost
entrepreneurship
expansion
depreciation
37. The dollar value of production by a country's citizens.
elastic demand
Gross National Product
investment expenditures
expenditure approach
38. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
tariff
land
expenditure approach
interest
39. The price of a domestic currency in terms of a foreign currency.
tariff
price index
exchange rate
business cycle
40. The income of households after taxes have been paid
disposable personal income
cost-push inflation
opportunity cost
real GDP
41. An industry structure in which there is only one seller for a product.
required reserve ratio (RRR)
national income (NI)
monopoly
opportunity cost
42. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
hyperinflation
neutral good
interest
movement along a demand curve
43. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
depression
business cycle
money multiplier
44. 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.
change in quantity demanded
scarcity
nominal GDP
monetary policy
45. The income earned by households and profits earned by firms after subtracting.
national income (NI)
entrepreneurship
number of composition of consumers
individual choice
46. Goods that go together - if price ? the demand for both that good and complimentary good ?.
perfectly elastic
depression
complimentary goods
marginal propensity to consume (MPC)
47. Price control set when the market price is believed to be too high.
real GDP
consumer surplus
total revenue
price ceiling
48. The willingness and ability of buyers to purchase a good or service.
national income (NI)
interest
price ceiling
demand
49. 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.
trade deficit
aggregate demand curve
inferior good
diminishing marginal utility
50. 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.
Labor
unemployment rate
demand-pull inflation
hyperinflation