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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 effort of workers.
market equilibrium
susbtitute goods
Labor
economic aggregates
2. A relationship between two factors in which the factors move in the same direction.
susbtitute goods
elastic
price floor
direct relationship
3. A curve defining the relationship between real production and price level.
aggregate supply curve
peak
neutral good
change in quantity demanded
4. The willingness and ability of buyers to purchase a good or service.
Labor
elastic
demand curve shifts
demand
5. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
aggregate supply curve
economics
price index
scarcity
6. 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
unemployed
exchange rate
import quotas
depression
7. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
demand elasticity
cyclical unemployment
monetary policy
8. 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.
demand schedule
inferior good
consumer taste and preferences
economics
9. 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
complimentary goods
nominal GDP
microeconomics
substitution effect
10. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
monopoly
marginal propensity to consume (MPC)
tariff
11. When the percent of change in the quantity demanded equals the percent of change in price.
nominal GDP
unit elastic
real GDP
trough
12. 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.
hyperinflation
macroeconomics
demand schedule
Marginal Propensity to Save (MPS)
13. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
demand-pull inflation
economic aggregates
price index
14. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
microeconomics
scarce
trade deficit
Labor
15. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.
consumption expenditures
market equilibrium
hyperinflation
structural unemployment
16. An increase in the price level
inflation
Marginal Propensity to Save (MPS)
normal good
monopoly
17. Real cost of an item is its opportunity cost.
consumer taste and preferences
normal good
real GDP
opportunity cost
18. The amount of money available to consumers to purchase goods and services.
hyperinflation
stagflation
substitution effect
purchasing power
19. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
labor force
marginal revenue
A decrease in TR following an increase in price = elastic demand
Gross Domestic Product
20. A bad depressingly prolonged recession in economic activity.
depreciation
structural unemployment
depression
exchange rate
21. The amount of a good actually sold.
quantity exchanged
exchange rate
frictional unemployment
business cycle
22. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
change in quantity demanded
rule of 70
law of demand
import quotas
23. 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
demand
expansionary fiscal policy
hidden unemployment
real GDP
24. The long-run pattern of growth and recession.
business cycle
A decrease in TR following an increase in price = elastic demand
depression
number of composition of consumers
25. (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.
purchasing power
land
elastic demand
number of composition of consumers
26. 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.
national income (NI)
labor force
trade surplus
perfectly elastic
27. 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.
expansion
investment expenditures
depression
demand curve shifts
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
land
movement along a demand curve
aggregate supply curve
cost-push inflation
29. 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.
nominal GDP
macroeconomics
price floor
hidden unemployment
30. 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.
consumer taste and preferences
tariff
frictional unemployment
law of supply
31. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
susbtitute goods
macroeconomics
trade surplus
expenditure approach
32. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
inelastic
Phillips curve
marginal revenue
A decrease in TR following an increase in price = elastic demand
33. 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?
price ceiling
demand elasticity
tariff
law of supply
34. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
expansionary fiscal policy
Labor
SRAS curve
35. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
market economy
law of demand
cyclical unemployment
macroeconomics
36. 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).
complimentary goods
economics
hidden unemployment
unemployment rate
37. Consumer income rise - demand will rise.
rule of 70
neutral good
inferior good
unemployed
38. The deliberate control of the money supply by the Federal government.
land
Phillips curve
Marginal Propensity to Save (MPS)
monetary policy
39. 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
simple money multiplier
import quotas
monopoly
40. Restrictions on the quantity of a good that can be imported
import quotas
macroeconomics
expansionary fiscal policy
monetary policy
41. 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.
Marginal Propensity to Save (MPS)
hyperinflation
elastic demand
entrepreneurship
42. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.
normal good
change in quantity demanded
depression
purchasing power
43. An industry structure in which there is only one seller for a product.
substitution effect
inverse relationship
monopoly
consumer good
44. The addition to total revenue created by selling one additional unit of ouput.
land
marginal revenue
neutral good
Labor
45. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.
disposable personal income
peak
entrepreneurship
microeconomics
46. 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).
interest
market demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
demand curve
47. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
depreciation
demand curve
trough
48. The cost of something in terms of what one must give up to get it.
business cycle
rule of 70
opportunity cost
total revenue
49. 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
monopoly
land
rule of 70
50. Not significantly responsive to changes in price.
inelastic
exchange rate
monopoly
law of supply