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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. Not significantly responsive to changes in price.
inelastic
recession
market demand curve
investment expenditures
2. Price control set when the market price is believed to be too low.
Gross Domestic Product
law of supply
price floor
LRAS curv
3. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
number of composition of consumers
aggregate supply curve
depression
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.
government expenditures
inferior good
labor force
movement along a demand curve
5. 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
market economy
demand schedule
Gross Domestic Product
6. An industry structure in which there is only one seller for a product.
opportunity cost
price ceiling
frictional unemployment
monopoly
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.
investment expenditures
direct relationship
labor force
national income (NI)
8. Long- run aggregate supply curve
demand curve
market supply curve
Gross Domestic Product
LRAS curv
9. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
consumption expenditures
cyclical unemployment
expansion
10. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
total revenue
resource
fiscal policy
number of composition of consumers
11. 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
fiscal policy
consumer surplus
marginal revenue
12. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand curve
individual choice
economic aggregates
unit elastic
13. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
tariff
susbtitute goods
expenditure approach
structural unemployment
14. Fluctuations in real GDP around the trend value; also called economic fluctuations.
aggregate supply curve
scarce
business cycles
SRAS curve
15. Anything that shows the economy as a whole.
economic aggregates
trade deficit
unit elastic
national income (NI)
16. The long-run pattern of growth and recession.
business cycle
business cycles
economic aggregates
law of demand
17. 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 good
demand-pull inflation
economic aggregates
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
18. An increase or decrease in consumer income will cause a shift in the Demand Curve.
structural unemployment
consumer good
demand elasticity
total revenue
19. Government officials make decisions about economy.
required reserve ratio (RRR)
inelastic demand
Gross Domestic Product
command economy
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
price ceiling
cyclical unemployment
complimentary goods
national economic accounts
21. A shift of the demand curve resulting from a change in consumer taste and preferences.
opportunity cost
demand curve shifts
consumer taste and preferences
susbtitute goods
22. An increase in the price level
market demand curve
market economy
inflation
price floor
23. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
LRAS curv
opportunity cost
cyclical unemployment
movement along a demand curve
24. When the percent of change in the quantity demanded equals the percent of change in price.
scarce
inelastic demand
unit elastic
demand curve
25. 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.
inflation
diminishing marginal utility
demand curve shifts
oligopoly
26. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
movement along a demand curve
fiscal policy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
27. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
depression
recession
stagflation
market equilibrium
28. 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).
unit elastic
consumer income rise
economics
cost-push inflation
29. 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.
land
labor force
inflation
perfectly elastic
30. A measure of the price level - or the average level of prices.
marginal revenue
price index
demand elasticity
demand curve shifts
31. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
demand curve shifts
demand curve
depreciation
rule of 70
32. Anything that can be used to produce something else
opportunity cost
depression
exchange rate
resource
33. 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.
elastic demand
tariff
law of supply
aggregate demand curve
34. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
money multiplier
government expenditures
substitution effect
trade surplus
35. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
consumer good
movement along a demand curve
law of demand
recession
36. The dollar value of goods and services sold to governments.
government expenditures
expansionary monetary policy
business cycles
demand
37. 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
price ceiling
diminishing marginal utility
unemployed
investment expenditures
38. The lowest point of a business cycle
economics
investment expenditures
law of supply
trough
39. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
government expenditures
required reserve ratio (RRR)
consumer taste and preferences
scarcity
40. 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.
normal good
Gross National Product
aggregate demand curve
changes in consumer expectations
41. The transition point between economic recession and recovery.
investment expenditures
trough
Gross National Product
complimentary goods
42. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
opportunity cost
number of composition of consumers
price ceiling
money multiplier
43. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
land
perfectly elastic
market equilibrium
changes in consumer expectations
44. Price control set when the market price is believed to be too high.
SRAS curve
price ceiling
disposable personal income
demand elasticity
45. The dollar value of production by a country's citizens.
Gross National Product
cyclical unemployment
complimentary goods
individual choice
46. A relationship between two factors in which the factors move in the same direction.
marginal propensity to consume (MPC)
direct relationship
economic aggregates
monopoly
47. 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.
entrepreneurship
Marginal Propensity to Save (MPS)
simple money multiplier
inflation
48. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
consumer surplus
marginal propensity to consume (MPC)
consumer taste and preferences
A decrease in TR following an increase in price = elastic demand
49. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
marginal revenue
depression
required reserve ratio (RRR)
market supply curve
50. 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.
normal good
frictional unemployment
command economy
consumer surplus