SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. 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.
susbtitute goods
unemployment rate
frictional unemployment
market equilibrium
2. 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
investment expenditures
change in quantity demanded
hyperinflation
3. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
Marginal Propensity to Save (MPS)
substitution effect
susbtitute goods
elastic
4. 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.
demand curve shifts
Gross Domestic Product
monetary policy
trade deficit
5. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
susbtitute goods
demand
changes in consumer expectations
6. Decisions by individuals about what to do and what not to do.
individual choice
demand-pull inflation
marginal propensity to consume (MPC)
consumer income rise
7. A curve defining the relationship between real production and price level.
command economy
aggregate supply curve
land
microeconomics
8. A bad depressingly prolonged recession in economic activity.
inflation
peak
law of supply
depression
9. 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.
expansionary monetary policy
depression
perfectly elastic
Marginal Propensity to Save (MPS)
10. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
direct relationship
inelastic demand
trade surplus
11. The deliberate control of the money supply by the Federal government.
neutral good
monetary policy
elastic
resource
12. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
price ceiling
scarcity
changes in consumer expectations
movement along a demand curve
13. An increase or decrease in consumer income will cause a shift in the Demand Curve.
national income (NI)
tariff
consumer good
structural unemployment
14. Price control set when the market price is believed to be too low.
price floor
depression
unemployment rate
frictional unemployment
15. Consumer income rise - demand will rise.
scarcity
neutral good
complimentary goods
individual choice
16. Goods that go together - if price ? the demand for both that good and complimentary good ?.
consumer taste and preferences
law of demand
complimentary goods
required reserve ratio (RRR)
17. The income earned by households and profits earned by firms after subtracting.
Gross Domestic Product
national income (NI)
macroeconomics
entrepreneurship
18. Not significantly responsive to changes in price.
hidden unemployment
purchasing power
inelastic
labor force
19. 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).
unemployment rate
aggregate demand curve
price floor
law of demand
20. 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
labor force
demand curve shifts
scarce
21. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
demand-pull inflation
peak
demand curve
22. 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.
economic aggregates
inelastic demand
demand curve
depreciation
23. 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
Labor
business cycles
movement along a demand curve
24. 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
demand elasticity
SRAS curve
rule of 70
movement along a demand curve
25. 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.
rule of 70
inferior good
simple money multiplier
consumer income rise
26. 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.
macroeconomics
economic aggregates
demand schedule
quantity exchanged
27. The proportion of each additional dollar of income that is saved.
elastic demand
opportunity cost
Marginal Propensity to Save (MPS)
changes in consumer expectations
28. 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
marginal revenue
hidden unemployment
labor force
29. The dollar value of production by a country's citizens.
complimentary goods
expansionary fiscal policy
Gross National Product
exchange rate
30. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
perfectly elastic
expansion
required reserve ratio (RRR)
macroeconomics
31. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
investment expenditures
inverse relationship
exchange rate
LRAS curv
32. The proportion of each additional dollar of income that will go toward consumption expenditures.
demand curve shifts
frictional unemployment
elastic
marginal propensity to consume (MPC)
33. The amount of a good actually sold.
government expenditures
inflation
inferior good
quantity exchanged
34. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
market demand curve
oligopoly
peak
law of demand
35. An industry structure in which there is only one seller for a product.
microeconomics
stagflation
resource
monopoly
36. The dollar value of goods and services sold to governments.
inelastic demand
economic aggregates
government expenditures
expansionary monetary policy
37. The income of households after taxes have been paid
economics
disposable personal income
Phillips curve
law of demand
38. Anything that can be used to produce something else
demand curve
resource
price floor
recession
39. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
economics
structural unemployment
demand
susbtitute goods
40. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
total revenue
scarcity
price index
law of demand
41. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
Marginal Propensity to Save (MPS)
money multiplier
depreciation
required reserve ratio (RRR)
42. Government officials make decisions about economy.
command economy
number of composition of consumers
inferior good
money multiplier
43. Long- run aggregate supply curve
trade surplus
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
perfectly elastic
LRAS curv
44. 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).
expansion
change in quantity demanded
market demand curve
susbtitute goods
45. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
demand elasticity
depression
substitution effect
46. The long-run pattern of growth and recession.
LRAS curv
demand curve
business cycle
trade surplus
47. A special tax imposed on imported goods.
purchasing power
oligopoly
tariff
economic aggregates
48. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
stagflation
law of supply
fiscal policy
purchasing power
49. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
unit elastic
law of supply
consumer surplus
50. A relationship between two factors in which the factors move in the same direction.
national economic accounts
direct relationship
price floor
inverse relationship