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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. Rising prices - across the board.
inflation
national economic accounts
consumer surplus
peak
2. An increase or decrease in consumer income will cause a shift in the Demand Curve.
neutral good
rule of 70
consumer good
elastic demand
3. A relationship between two factors in which the factors move in the same direction.
direct relationship
price index
market economy
expansionary monetary policy
4. Anything that can be used to produce something else
cyclical unemployment
inelastic
resource
consumer taste and preferences
5. The sum of all the quantities of a good supplies by all producers at each price.
total revenue
market supply curve
market demand curve
Labor
6. The effort of workers.
unemployed
Labor
command economy
simple money multiplier
7. The amount of money available to consumers to purchase goods and services.
consumption expenditures
rule of 70
economic aggregates
purchasing power
8. When the percent of change in the quantity demanded equals the percent of change in price.
direct relationship
required reserve ratio (RRR)
demand elasticity
unit elastic
9. The amount of a good actually sold.
inelastic
inferior good
quantity exchanged
demand-pull inflation
10. 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).
unit elastic
opportunity cost
demand-pull inflation
unemployment rate
11. The income of households after taxes have been paid
susbtitute goods
consumer surplus
disposable personal income
money multiplier
12. 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
economic aggregates
business cycle
change in quantity demanded
13. (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.
trade surplus
oligopoly
consumer taste and preferences
number of composition of consumers
14. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
oligopoly
individual choice
number of composition of consumers
15. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
import quotas
Gross National Product
inferior good
16. The transition point between economic recession and recovery.
national income (NI)
elastic
market economy
trough
17. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
aggregate demand curve
diminishing marginal utility
economics
real GDP
18. Short-run aggregate supply curve
SRAS curve
complimentary goods
command economy
government expenditures
19. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
recession
resource
changes in consumer expectations
20. 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
expansionary monetary policy
nominal GDP
elastic demand
market demand curve
21. An increase in the price level
demand curve
inflation
required reserve ratio (RRR)
expansionary fiscal policy
22. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
demand schedule
microeconomics
cyclical unemployment
depression
23. A shift of the demand curve resulting from a change in consumer taste and preferences.
Labor
economic aggregates
trough
consumer taste and preferences
24. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
recession
interest
price floor
25. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
elastic demand
consumer income rise
land
microeconomics
26. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
fiscal policy
frictional unemployment
law of demand
land
27. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
disposable personal income
microeconomics
Phillips curve
28. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
individual choice
A decrease in TR following an increase in price = elastic demand
demand-pull inflation
trade deficit
29. The income earned by households and profits earned by firms after subtracting.
national income (NI)
stagflation
Labor
trade deficit
30. Restrictions on the quantity of a good that can be imported
A decrease in TR following an increase in price = elastic demand
purchasing power
unit elastic
import quotas
31. 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.
microeconomics
import quotas
demand
changes in consumer expectations
32. The addition to total revenue created by selling one additional unit of ouput.
cyclical unemployment
business cycle
marginal revenue
market economy
33. The deliberate control of the money supply by the Federal government.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
required reserve ratio (RRR)
national income (NI)
monetary policy
34. 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
market equilibrium
unemployment rate
expenditure approach
35. Significantly responsive to a change in price.
elastic
inflation
land
depreciation
36. 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
Labor
rule of 70
Gross Domestic Product
Marginal Propensity to Save (MPS)
37. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
expansionary monetary policy
inflation
Phillips curve
demand
38. The dollar value of production within a nation's border.
Gross Domestic Product
business cycle
SRAS curve
law of demand
39. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
command economy
aggregate supply curve
real GDP
fiscal policy
40. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
market economy
economic aggregates
marginal propensity to consume (MPC)
41. Decisions by individuals about what to do and what not to do.
individual choice
peak
law of demand
susbtitute goods
42. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
frictional unemployment
money multiplier
direct relationship
scarce
43. A measure of the price level - or the average level of prices.
required reserve ratio (RRR)
government expenditures
movement along a demand curve
price index
44. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
inferior good
recession
nominal GDP
45. Price control set when the market price is believed to be too high.
price floor
price ceiling
monetary policy
opportunity cost
46. Period in which a recession becomes prolonged and deep - involving high unemployment.
marginal propensity to consume (MPC)
trade deficit
depression
rule of 70
47. The payment that capital receives in the factor market.
interest
elastic demand
expansionary fiscal policy
economic aggregates
48. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
expansion
total revenue
peak
opportunity cost
49. 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
simple money multiplier
individual choice
nominal GDP
unemployed
50. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
law of demand
import quotas
demand curve