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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. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
change in quantity demanded
consumer surplus
depression
scarcity
2. 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.
exchange rate
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
import quotas
labor force
3. 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.
frictional unemployment
aggregate demand curve
marginal propensity to consume (MPC)
market supply curve
4. Price control set when the market price is believed to be too low.
price floor
hidden unemployment
land
peak
5. The dollar value of production within a nation's border.
changes in consumer expectations
Gross Domestic Product
fiscal policy
rule of 70
6. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
Gross National Product
demand curve
monetary policy
7. A relationship between two factors in which the factors move in the same direction.
change in quantity demanded
oligopoly
marginal propensity to consume (MPC)
direct relationship
8. 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
nominal GDP
rule of 70
national economic accounts
total revenue
9. Government officials make decisions about economy.
command economy
aggregate supply curve
consumption expenditures
changes in consumer expectations
10. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
depreciation
inelastic demand
demand curve
A decrease in TR following an increase in price = elastic demand
11. A curve defining the relationship between real production and price level.
aggregate supply curve
expansionary monetary policy
demand elasticity
depression
12. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
national economic accounts
Phillips curve
substitution effect
consumer taste and preferences
13. A Latin phrase meaning 'all things constant.'
trough
interest
expansionary monetary policy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
14. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarcity
Labor
scarce
resource
15. 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
exchange rate
trough
consumer taste and preferences
16. The dollar value of all the goods and services sold to house holds.
recession
monopoly
consumption expenditures
individual choice
17. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.
unemployment rate
normal good
simple money multiplier
scarce
18. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
market economy
trade deficit
expansionary monetary policy
19. The dollar value of production by a country's citizens.
trough
required reserve ratio (RRR)
demand curve shifts
Gross National Product
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
exchange rate
opportunity cost
command economy
trade surplus
21. An increase or decrease in consumer income will cause a shift in the Demand Curve.
hidden unemployment
consumer good
market supply curve
unemployment rate
22. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
cost-push inflation
direct relationship
SRAS curve
substitution effect
23. Real cost of an item is its opportunity cost.
fiscal policy
demand schedule
LRAS curv
opportunity cost
24. 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.
demand schedule
consumer surplus
scarce
marginal revenue
25. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
law of demand
expansionary fiscal policy
depreciation
trough
26. 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
LRAS curv
price floor
simple money multiplier
unemployed
27. Price control set when the market price is believed to be too high.
command economy
hidden unemployment
price ceiling
unemployment rate
28. Not significantly responsive to changes in price.
scarcity
national economic accounts
LRAS curv
inelastic
29. Rising prices - across the board.
law of supply
resource
depression
inflation
30. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
total revenue
opportunity cost
trade deficit
cost-push inflation
31. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
economics
demand
SRAS curve
total revenue
32. The deliberate control of the money supply by the Federal government.
expansionary monetary policy
monetary policy
stagflation
demand elasticity
33. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
elastic demand
trade surplus
expenditure approach
scarcity
34. The long-run pattern of growth and recession.
business cycle
scarcity
LRAS curv
demand curve
35. 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
fiscal policy
Labor
law of demand
trough
36. 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.
consumption expenditures
market supply curve
demand schedule
stagflation
37. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
price ceiling
entrepreneurship
LRAS curv
inverse relationship
38. 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.
aggregate demand curve
frictional unemployment
land
normal good
39. 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
labor force
macroeconomics
fiscal policy
40. Expenditure by businesses on plant and equipment and the change in business invention.
SRAS curve
number of composition of consumers
investment expenditures
market demand curve
41. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
trade deficit
direct relationship
fiscal policy
Phillips 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.
Gross National Product
unemployment rate
required reserve ratio (RRR)
opportunity cost
43. The dollar value of goods and services sold to governments.
Marginal Propensity to Save (MPS)
unemployed
government expenditures
money multiplier
44. Fluctuations in real GDP around the trend value; also called economic fluctuations.
direct relationship
oligopoly
hidden unemployment
business cycles
45. 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.
expansionary fiscal policy
marginal propensity to consume (MPC)
demand curve shifts
Gross National Product
46. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
Gross Domestic Product
complimentary goods
diminishing marginal utility
aggregate demand curve
47. Anything that can be used to produce something else
frictional unemployment
resource
marginal revenue
demand
48. (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 taste and preferences
demand schedule
number of composition of consumers
Gross Domestic Product
49. The amount of a good actually sold.
quantity exchanged
money multiplier
demand curve
hidden unemployment
50. Decisions by individuals about what to do and what not to do.
neutral good
elastic
recession
individual choice