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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 sum of all the quantities of a good supplies by all producers at each price.
government expenditures
consumption expenditures
market supply curve
purchasing power
2. The amount of money available to consumers to purchase goods and services.
marginal propensity to consume (MPC)
quantity exchanged
purchasing power
economics
3. 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.
structural unemployment
stagflation
diminishing marginal utility
neutral good
4. The study of scarcity and choice.
depression
scarcity
demand
economics
5. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
inverse relationship
land
fiscal policy
elastic demand
6. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
disposable personal income
normal good
labor force
total revenue
7. 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
interest
inelastic demand
inelastic
8. Significantly responsive to a change in price.
elastic
expansionary monetary policy
number of composition of consumers
consumer income rise
9. 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
expansion
expansionary monetary policy
market demand curve
consumption expenditures
10. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
expansionary fiscal policy
total revenue
nominal GDP
11. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
interest
changes in consumer expectations
depression
Labor
12. A bad depressingly prolonged recession in economic activity.
peak
command economy
consumer surplus
depression
13. Consumer income rise - demand will rise.
unemployment rate
rule of 70
neutral good
unit elastic
14. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
inflation
Gross National Product
nominal GDP
15. The price of a domestic currency in terms of a foreign currency.
exchange rate
monetary policy
demand elasticity
law of demand
16. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
frictional unemployment
unemployment rate
market economy
inelastic demand
17. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
Marginal Propensity to Save (MPS)
market demand curve
scarce
unemployment rate
18. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
movement along a demand curve
individual choice
structural unemployment
19. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.
microeconomics
interest
depression
oligopoly
20. 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).
macroeconomics
demand elasticity
cost-push inflation
price floor
21. The income earned by households and profits earned by firms after subtracting.
national income (NI)
business cycles
neutral good
inverse relationship
22. Short-run aggregate supply curve
Gross National Product
SRAS curve
individual choice
expansionary fiscal policy
23. The income of households after taxes have been paid
disposable personal income
inflation
demand curve
trough
24. The willingness and ability of buyers to purchase a good or service.
demand curve shifts
demand curve
demand
microeconomics
25. The dollar value of all the goods and services sold to house holds.
hidden unemployment
Phillips curve
consumption expenditures
inverse relationship
26. 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).
scarce
expansionary fiscal policy
depression
inverse relationship
27. Anything that shows the economy as a whole.
movement along a demand curve
consumer good
Labor
economic aggregates
28. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
number of composition of consumers
Phillips curve
consumption expenditures
inelastic demand
29. 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.
inelastic demand
consumer taste and preferences
monetary policy
disposable personal income
30. 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.
number of composition of consumers
labor force
monopoly
microeconomics
31. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
elastic demand
trough
consumer income rise
market supply curve
32. Government officials make decisions about economy.
demand schedule
demand elasticity
command economy
land
33. 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
law of demand
resource
monopoly
34. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
cyclical unemployment
national economic accounts
rule of 70
land
35. The dollar value of goods and services sold to governments.
complimentary goods
individual choice
government expenditures
real GDP
36. 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.
individual choice
macroeconomics
trade deficit
simple money multiplier
37. 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.
national income (NI)
depreciation
hidden unemployment
consumer taste and preferences
38. 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.
demand curve
marginal revenue
depreciation
perfectly elastic
39. 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).
market demand curve
Labor
stagflation
change in quantity demanded
40. Rising prices - across the board.
recession
inflation
monopoly
demand
41. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
economics
monopoly
demand schedule
42. The long-run pattern of growth and recession.
national income (NI)
changes in consumer expectations
business cycle
market equilibrium
43. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
inflation
LRAS curv
land
44. A shift of the demand curve resulting from a change in consumer taste and preferences.
inferior good
trade deficit
demand-pull inflation
consumer taste and preferences
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.
elastic
Gross Domestic Product
expansionary fiscal policy
microeconomics
46. Real cost of an item is its opportunity cost.
depression
demand curve shifts
opportunity cost
total revenue
47. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
opportunity cost
price floor
national economic accounts
business cycles
48. 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.
import quotas
demand curve shifts
opportunity cost
neutral good
49. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
consumer good
cost-push inflation
inverse relationship
SRAS curve
50. Not significantly responsive to changes in price.
inelastic
marginal propensity to consume (MPC)
LRAS curv
macroeconomics