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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 transition point between economic recession and recovery.
peak
expansionary fiscal policy
trough
LRAS curv
2. A relationship between two factors in which the factors move in the same direction.
demand
LRAS curv
price index
direct relationship
3. 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.
stagflation
expansionary fiscal policy
demand-pull inflation
structural unemployment
4. Real cost of an item is its opportunity cost.
opportunity cost
direct relationship
expansion
expansionary monetary policy
5. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.
consumer surplus
A decrease in TR following an increase in price = elastic demand
hidden unemployment
price ceiling
6. A special tax imposed on imported goods.
unemployed
interest
economics
tariff
7. 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
susbtitute goods
cost-push inflation
trough
8. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
substitution effect
consumer income rise
trough
Phillips curve
9. 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.
economic aggregates
expansionary fiscal policy
labor force
monopoly
10. A measure of the price level - or the average level of prices.
stagflation
price index
opportunity cost
labor force
11. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
tariff
substitution effect
unit elastic
scarce
12. 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
marginal revenue
microeconomics
unemployed
13. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
national income (NI)
consumer taste and preferences
market equilibrium
land
14. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
microeconomics
demand curve shifts
frictional unemployment
15. Period in which a recession becomes prolonged and deep - involving high unemployment.
demand-pull inflation
depression
expansion
direct relationship
16. Consumer income rise - demand will rise.
rule of 70
neutral good
demand schedule
purchasing power
17. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
import quotas
structural unemployment
market economy
trade surplus
18. Expenditure by businesses on plant and equipment and the change in business invention.
inelastic
investment expenditures
stagflation
resource
19. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
marginal propensity to consume (MPC)
expansion
market equilibrium
price index
20. A Latin phrase meaning 'all things constant.'
monetary policy
entrepreneurship
substitution effect
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
21. 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.
perfectly elastic
demand
substitution effect
change in quantity demanded
22. 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
law of demand
structural unemployment
LRAS curv
law of supply
23. Restrictions on the quantity of a good that can be imported
unemployment rate
susbtitute goods
import quotas
Phillips curve
24. Significantly responsive to a change in price.
monopoly
market demand curve
elastic
scarcity
25. When the percent of change in the quantity demanded equals the percent of change in price.
demand
unit elastic
SRAS curve
law of supply
26. The amount of a good actually sold.
interest
demand elasticity
command economy
quantity exchanged
27. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
LRAS curv
national economic accounts
oligopoly
cyclical unemployment
28. A bad depressingly prolonged recession in economic activity.
elastic
microeconomics
depression
hidden unemployment
29. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
inflation
depreciation
monopoly
recession
30. The long-run pattern of growth and recession.
business cycle
recession
complimentary goods
elastic demand
31. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
aggregate demand curve
price floor
fiscal policy
real GDP
32. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
required reserve ratio (RRR)
hidden unemployment
A decrease in TR following an increase in price = elastic demand
scarce
33. 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.
opportunity cost
inverse relationship
inelastic demand
import quotas
34. An industry structure in which there is only one seller for a product.
monopoly
economics
consumer surplus
consumer income rise
35. The dollar value of production within a nation's border.
command economy
normal good
Gross Domestic Product
price floor
36. 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.
national economic accounts
inferior good
consumer good
simple money multiplier
37. 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 economy
required reserve ratio (RRR)
number of composition of consumers
market demand curve
38. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
rule of 70
opportunity cost
changes in consumer expectations
total revenue
39. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
hyperinflation
quantity exchanged
economic aggregates
40. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
changes in consumer expectations
economics
law of supply
law of demand
41. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
national income (NI)
depression
cyclical unemployment
trade surplus
42. Goods that go together - if price ? the demand for both that good and complimentary good ?.
demand-pull inflation
complimentary goods
monetary policy
elastic demand
43. 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
rule of 70
resource
Phillips curve
oligopoly
44. The proportion of each additional dollar of income that is saved.
government expenditures
microeconomics
Marginal Propensity to Save (MPS)
consumption expenditures
45. 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
national income (NI)
A decrease in TR following an increase in price = elastic demand
unemployed
consumer taste and preferences
46. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
import quotas
consumption expenditures
structural unemployment
unit elastic
47. 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).
depreciation
expansionary fiscal policy
trade surplus
money multiplier
48. 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
import quotas
law of supply
number of composition of consumers
49. 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.
inelastic demand
frictional unemployment
exchange rate
demand curve shifts
50. The study of scarcity and choice.
market supply curve
economics
expansionary monetary policy
cyclical unemployment