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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. Significantly responsive to a change in price.
trough
elastic
structural unemployment
cost-push inflation
2. The addition to total revenue created by selling one additional unit of ouput.
disposable personal income
opportunity cost
marginal revenue
simple money multiplier
3. 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).
normal good
individual choice
consumer taste and preferences
expansionary fiscal policy
4. Long- run aggregate supply curve
LRAS curv
unemployed
inelastic demand
depression
5. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
money multiplier
fiscal policy
exchange rate
price ceiling
6. 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
fiscal policy
aggregate supply curve
price floor
expansionary monetary policy
7. The study of scarcity and choice.
movement along a demand curve
economics
frictional unemployment
business cycle
8. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
normal good
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
Phillips curve
fiscal policy
9. The willingness and ability of buyers to purchase a good or service.
individual choice
demand
inflation
SRAS curve
10. 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.
recession
aggregate supply curve
trough
microeconomics
11. 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).
inflation
resource
stagflation
market demand curve
12. 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.
scarcity
opportunity cost
demand curve
labor force
13. A relationship between two factors in which the factors move in the same direction.
susbtitute goods
direct relationship
inverse relationship
demand-pull inflation
14. The dollar value of production within a nation's border.
inelastic
monetary policy
land
Gross Domestic Product
15. An increase in the price level
oligopoly
inflation
depression
consumer income rise
16. 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.
fiscal policy
Phillips curve
inferior good
inelastic
17. 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
LRAS curv
inflation
cost-push inflation
18. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
normal good
trough
entrepreneurship
demand curve
19. The income of households after taxes have been paid
demand
unemployed
trough
disposable personal income
20. 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
unemployed
national income (NI)
demand-pull inflation
21. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
marginal propensity to consume (MPC)
investment expenditures
law of demand
trade surplus
22. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
susbtitute goods
Labor
required reserve ratio (RRR)
23. The long-run pattern of growth and recession.
demand elasticity
oligopoly
business cycle
law of demand
24. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
inflation
aggregate supply curve
cyclical unemployment
LRAS curv
25. Period in which a recession becomes prolonged and deep - involving high unemployment.
complimentary goods
Labor
depression
depreciation
26. 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).
law of demand
price ceiling
cost-push inflation
demand-pull inflation
27. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
aggregate supply curve
trough
complimentary goods
expenditure approach
28. 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
recession
Marginal Propensity to Save (MPS)
number of composition of consumers
rule of 70
29. The price of a domestic currency in terms of a foreign currency.
exchange rate
microeconomics
inferior good
demand-pull inflation
30. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
price index
consumer taste and preferences
individual choice
diminishing marginal utility
31. The payment that capital receives in the factor market.
recession
hidden unemployment
interest
demand-pull inflation
32. Consumer income rise - demand will rise.
number of composition of consumers
neutral good
consumer income rise
susbtitute goods
33. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
price ceiling
consumer surplus
business cycle
stagflation
34. An industry structure in which there is only one seller for a product.
elastic demand
monopoly
scarcity
macroeconomics
35. Price control set when the market price is believed to be too low.
price floor
susbtitute goods
interest
scarce
36. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
movement along a demand curve
marginal propensity to consume (MPC)
total revenue
entrepreneurship
37. 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.
changes in consumer expectations
change in quantity demanded
consumption expenditures
macroeconomics
38. Decisions by individuals about what to do and what not to do.
individual choice
inflation
resource
stagflation
39. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
labor force
economics
LRAS curv
40. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
labor force
hyperinflation
substitution effect
market demand curve
41. Government officials make decisions about economy.
command economy
unemployment rate
expenditure approach
structural unemployment
42. 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.
diminishing marginal utility
consumption expenditures
stagflation
Phillips curve
43. The effort of workers.
purchasing power
national income (NI)
demand elasticity
Labor
44. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
changes in consumer expectations
oligopoly
45. 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
unemployment rate
consumer good
trough
46. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
marginal revenue
unit elastic
normal good
labor force
47. 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.
change in quantity demanded
economics
consumer good
oligopoly
48. Anything that can be used to produce something else
rule of 70
opportunity cost
resource
consumption expenditures
49. (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.
number of composition of consumers
price ceiling
LRAS curv
inferior good
50. Restrictions on the quantity of a good that can be imported
frictional unemployment
import quotas
monopoly
unit elastic