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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. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
real GDP
economic aggregates
macroeconomics
2. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
real GDP
law of demand
diminishing marginal utility
expansionary fiscal policy
3. 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.
complimentary goods
scarcity
market demand curve
demand curve shifts
4. A curve defining the relationship between real production and price level.
required reserve ratio (RRR)
normal good
monopoly
aggregate supply curve
5. Consumer income rise - demand will rise.
demand-pull inflation
neutral good
demand curve
elastic
6. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
exchange rate
demand
nominal GDP
7. Government officials make decisions about economy.
command economy
LRAS curv
depression
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
8. 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.
trade surplus
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
microeconomics
labor force
9. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
hyperinflation
aggregate demand curve
perfectly elastic
10. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
number of composition of consumers
exchange rate
money multiplier
cyclical unemployment
11. 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.
inelastic demand
nominal GDP
hyperinflation
law of demand
12. Real cost of an item is its opportunity cost.
opportunity cost
aggregate supply curve
trade deficit
market demand curve
13. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
number of composition of consumers
expenditure approach
individual choice
import quotas
14. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
interest
recession
disposable personal income
trough
15. The amount of money available to consumers to purchase goods and services.
Gross Domestic Product
trough
neutral good
purchasing power
16. Long- run aggregate supply curve
tariff
expenditure approach
susbtitute goods
LRAS curv
17. Significantly responsive to a change in price.
market economy
law of demand
trade surplus
elastic
18. 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
total revenue
entrepreneurship
real GDP
monetary policy
19. The effort of workers.
LRAS curv
Labor
fiscal policy
elastic demand
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
changes in consumer expectations
demand schedule
diminishing marginal utility
21. 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
interest
SRAS curve
structural unemployment
22. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
law of supply
Labor
SRAS curve
demand curve
23. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
Labor
entrepreneurship
exchange rate
fiscal policy
24. 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
direct relationship
A decrease in TR following an increase in price = elastic demand
expenditure approach
25. The dollar value of all the goods and services sold to house holds.
consumption expenditures
demand-pull inflation
expansionary fiscal policy
elastic
26. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
cyclical unemployment
depreciation
exchange rate
national income (NI)
27. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trough
demand schedule
interest
trade deficit
28. The proportion of each additional dollar of income that will go toward consumption expenditures.
hidden unemployment
price index
marginal propensity to consume (MPC)
unemployment rate
29. The lowest point of a business cycle
trough
quantity exchanged
A decrease in TR following an increase in price = elastic demand
hyperinflation
30. The deliberate control of the money supply by the Federal government.
scarce
LRAS curv
trade deficit
monetary policy
31. The income earned by households and profits earned by firms after subtracting.
demand schedule
required reserve ratio (RRR)
national income (NI)
marginal revenue
32. 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.
hidden unemployment
real GDP
entrepreneurship
expansionary monetary policy
33. The payment that capital receives in the factor market.
economics
cyclical unemployment
market demand curve
interest
34. A relationship between two factors in which the factors move in the same direction.
real GDP
scarcity
simple money multiplier
direct relationship
35. (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
disposable personal income
real GDP
trough
36. An increase in the price level
inverse relationship
Gross Domestic Product
inflation
market demand curve
37. The income of households after taxes have been paid
Marginal Propensity to Save (MPS)
disposable personal income
resource
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
38. The highest point of a business cycle.
neutral good
cost-push inflation
peak
normal good
39. Anything that shows the economy as a whole.
complimentary goods
economic aggregates
price ceiling
simple money multiplier
40. Decisions by individuals about what to do and what not to do.
individual choice
Gross National Product
demand elasticity
microeconomics
41. Period in which a recession becomes prolonged and deep - involving high unemployment.
normal good
scarcity
consumer income rise
depression
42. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
land
monopoly
inelastic demand
43. A measure of the price level - or the average level of prices.
consumer surplus
national income (NI)
inelastic demand
price index
44. The addition to total revenue created by selling one additional unit of ouput.
cyclical unemployment
market economy
complimentary goods
marginal revenue
45. The amount of a good actually sold.
quantity exchanged
direct relationship
cost-push inflation
diminishing marginal utility
46. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
structural unemployment
tariff
LRAS curv
entrepreneurship
47. The sum of all the quantities of a good supplies by all producers at each price.
market economy
market supply curve
rule of 70
changes in consumer expectations
48. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
resource
expansion
trade deficit
demand
49. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.
demand elasticity
entrepreneurship
national income (NI)
aggregate demand curve
50. A bad depressingly prolonged recession in economic activity.
demand curve shifts
depression
Phillips curve
neutral good