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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
demand-pull inflation
inflation
trough
2. Restrictions on the quantity of a good that can be imported
consumer income rise
import quotas
unit elastic
diminishing marginal utility
3. 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.
inferior good
demand-pull inflation
opportunity cost
nominal GDP
4. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
inferior good
elastic demand
government expenditures
5. Rising prices - across the board.
Gross National Product
demand-pull inflation
investment expenditures
inflation
6. The cost of something in terms of what one must give up to get it.
market supply curve
neutral good
oligopoly
opportunity cost
7. Consumer income rise - demand will rise.
neutral good
law of supply
consumer good
elastic
8. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
cyclical unemployment
change in quantity demanded
trade surplus
complimentary goods
9. 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.
demand-pull inflation
consumer surplus
movement along a demand curve
oligopoly
10. A bad depressingly prolonged recession in economic activity.
price index
depression
inferior good
economics
11. A shift of the demand curve resulting from a change in consumer taste and preferences.
normal good
consumer taste and preferences
depression
resource
12. The dollar value of production within a nation's border.
Gross Domestic Product
economic aggregates
money multiplier
A decrease in TR following an increase in price = elastic demand
13. A special tax imposed on imported goods.
SRAS curve
depression
tariff
economics
14. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
demand curve
market economy
monetary policy
money multiplier
15. 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.
Marginal Propensity to Save (MPS)
expansionary fiscal policy
structural unemployment
opportunity cost
16. An increase in the price level
trade deficit
inflation
unit elastic
market demand curve
17. Significantly responsive to a change in price.
opportunity cost
marginal revenue
elastic
perfectly elastic
18. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
normal good
unemployed
change in quantity demanded
market equilibrium
19. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
neutral good
inflation
tariff
20. The long-run pattern of growth and recession.
demand schedule
individual choice
business cycle
inflation
21. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
demand
Phillips curve
law of demand
changes in consumer expectations
22. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
inelastic
Phillips curve
nominal GDP
trough
23. The addition to total revenue created by selling one additional unit of ouput.
Phillips curve
marginal revenue
depression
cost-push inflation
24. 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
money multiplier
resource
real GDP
elastic
25. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
resource
demand curve shifts
monetary policy
macroeconomics
26. The effort of workers.
law of supply
Labor
nominal GDP
changes in consumer expectations
27. The proportion of each additional dollar of income that is saved.
substitution effect
A decrease in TR following an increase in price = elastic demand
market equilibrium
Marginal Propensity to Save (MPS)
28. 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
inferior good
trade surplus
law of demand
Marginal Propensity to Save (MPS)
29. 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.
labor force
demand-pull inflation
opportunity cost
complimentary goods
30. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
real GDP
elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
trade deficit
31. Fluctuations in real GDP around the trend value; also called economic fluctuations.
real GDP
business cycles
monopoly
unemployed
32. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
monopoly
demand elasticity
substitution effect
opportunity cost
33. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
total revenue
command economy
price index
34. Decisions by individuals about what to do and what not to do.
land
inflation
individual choice
depression
35. 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.
frictional unemployment
simple money multiplier
entrepreneurship
monetary policy
36. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
national income (NI)
monopoly
scarcity
37. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
entrepreneurship
aggregate supply curve
macroeconomics
38. 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).
stagflation
market demand curve
cyclical unemployment
elastic
39. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
movement along a demand curve
resource
trough
40. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
trade deficit
national income (NI)
price index
41. The income of households after taxes have been paid
trough
consumer surplus
disposable personal income
trade deficit
42. 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.
aggregate supply curve
demand-pull inflation
hidden unemployment
hyperinflation
43. 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.
trade deficit
aggregate demand curve
labor force
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
44. 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
consumer surplus
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
direct relationship
nominal GDP
45. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
inelastic
direct relationship
movement along a demand curve
simple money multiplier
46. 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).
inelastic demand
required reserve ratio (RRR)
market demand curve
expansionary fiscal policy
47. 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).
unemployment rate
unemployed
expansionary monetary policy
cost-push inflation
48. Price control set when the market price is believed to be too high.
scarcity
price ceiling
cost-push inflation
movement along a demand curve
49. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).
scarcity
normal good
unemployment rate
inferior good
50. 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.
expansion
Marginal Propensity to Save (MPS)
elastic
law of supply