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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.
labor force
market equilibrium
business cycle
inelastic
2. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
quantity exchanged
investment expenditures
elastic demand
3. 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
entrepreneurship
substitution effect
inelastic
4. The dollar value of production within a nation's border.
structural unemployment
simple money multiplier
Gross Domestic Product
command economy
5. 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.
consumer surplus
demand-pull inflation
inferior good
demand curve shifts
6. The sum of all the quantities of a good supplies by all producers at each price.
demand curve shifts
market supply curve
resource
inelastic demand
7. The effort of workers.
Labor
unemployed
economics
consumer surplus
8. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unit elastic
scarcity
change in quantity demanded
9. An industry structure in which there is only one seller for a product.
hidden unemployment
susbtitute goods
movement along a demand curve
monopoly
10. The proportion of each additional dollar of income that will go toward consumption expenditures.
required reserve ratio (RRR)
total revenue
simple money multiplier
marginal propensity to consume (MPC)
11. 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.
frictional unemployment
total revenue
money multiplier
LRAS curv
12. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expansion
individual choice
expenditure approach
peak
13. The proportion of each additional dollar of income that is saved.
scarcity
Marginal Propensity to Save (MPS)
Gross National Product
substitution effect
14. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
government expenditures
market demand curve
economic aggregates
substitution effect
15. A measure of the price level - or the average level of prices.
national economic accounts
exchange rate
price index
government expenditures
16. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
depression
oligopoly
command economy
17. Significantly responsive to a change in price.
tariff
consumer taste and preferences
elastic
A decrease in TR following an increase in price = elastic demand
18. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
price index
unemployment rate
required reserve ratio (RRR)
complimentary goods
19. An increase in the price level
substitution effect
money multiplier
expansion
inflation
20. 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
trade surplus
perfectly elastic
unemployed
labor force
21. A bad depressingly prolonged recession in economic activity.
tariff
diminishing marginal utility
depression
national income (NI)
22. 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
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unemployed
price floor
23. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
movement along a demand curve
trough
market equilibrium
opportunity cost
24. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
depression
market equilibrium
changes in consumer expectations
25. The income of households after taxes have been paid
economics
disposable personal income
tariff
law of demand
26. 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
money multiplier
total revenue
demand curve shifts
27. 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
simple money multiplier
individual choice
interest
28. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade deficit
A decrease in TR following an increase in price = elastic demand
demand-pull inflation
trade surplus
29. The study of scarcity and choice.
opportunity cost
economics
law of supply
inflation
30. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
oligopoly
law of demand
monopoly
investment expenditures
31. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
cost-push inflation
stagflation
marginal revenue
labor force
32. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
expenditure approach
elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
33. A curve defining the relationship between real production and price level.
aggregate supply curve
demand curve shifts
demand elasticity
national income (NI)
34. When the percent of change in the quantity demanded equals the percent of change in price.
number of composition of consumers
changes in consumer expectations
unit elastic
normal good
35. 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.
change in quantity demanded
expansionary fiscal policy
depression
SRAS curve
36. (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.
nominal GDP
number of composition of consumers
Phillips curve
consumer taste and preferences
37. Real cost of an item is its opportunity cost.
money multiplier
opportunity cost
fiscal policy
monetary policy
38. A relationship between two factors in which the factors move in the same direction.
direct relationship
substitution effect
market equilibrium
business cycle
39. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount
consumer income rise
expansionary monetary policy
complimentary goods
disposable personal income
40. 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.
microeconomics
elastic
inelastic
hyperinflation
41. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
demand-pull inflation
unemployed
cost-push inflation
42. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
trade deficit
market demand curve
price ceiling
43. Price control set when the market price is believed to be too low.
market economy
elastic demand
scarce
price floor
44. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
substitution effect
Labor
demand-pull inflation
macroeconomics
45. 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.
elastic
inelastic demand
SRAS curve
nominal GDP
46. The income earned by households and profits earned by firms after subtracting.
nominal GDP
national income (NI)
LRAS curv
demand curve shifts
47. The willingness and ability of buyers to purchase a good or service.
demand
inferior good
frictional unemployment
cost-push inflation
48. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
microeconomics
trade deficit
aggregate demand curve
total revenue
49. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
disposable personal income
movement along a demand curve
consumer good
market equilibrium
50. 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.
simple money multiplier
inverse relationship
elastic demand
Phillips curve