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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 amount of a good actually sold.
unit elastic
hyperinflation
quantity exchanged
land
2. Decisions by individuals about what to do and what not to do.
market demand curve
hidden unemployment
neutral good
individual choice
3. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
inflation
change in quantity demanded
trough
money multiplier
4. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
law of demand
inverse relationship
consumer income rise
total revenue
5. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
depression
trough
consumption expenditures
inverse relationship
6. Government officials make decisions about economy.
command economy
elastic demand
trough
consumer surplus
7. 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?
inelastic
demand elasticity
structural unemployment
exchange rate
8. The dollar value of all the goods and services sold to house holds.
LRAS curv
consumption expenditures
rule of 70
susbtitute goods
9. 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.
individual choice
depression
aggregate demand curve
frictional unemployment
10. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
hidden unemployment
trade deficit
business cycles
depreciation
11. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
trough
perfectly elastic
required reserve ratio (RRR)
trough
12. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
substitution effect
market equilibrium
individual choice
money multiplier
13. The amount of money available to consumers to purchase goods and services.
frictional unemployment
purchasing power
command economy
land
14. 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
market equilibrium
market supply curve
unemployed
changes in consumer expectations
15. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand curve
rule of 70
fiscal policy
complimentary goods
16. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
macroeconomics
business cycle
aggregate demand curve
17. The lowest point of a business cycle
trough
inelastic
movement along a demand curve
elastic
18. An increase or decrease in consumer income will cause a shift in the Demand Curve.
monetary policy
consumer good
marginal propensity to consume (MPC)
recession
19. 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).
scarcity
susbtitute goods
Phillips curve
unemployment rate
20. 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.
individual choice
government expenditures
oligopoly
opportunity cost
21. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
Gross Domestic Product
trade deficit
law of supply
A decrease in TR following an increase in price = elastic demand
22. The deliberate control of the money supply by the Federal government.
monetary policy
purchasing power
inverse relationship
complimentary goods
23. 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.
consumer good
frictional unemployment
elastic demand
neutral good
24. Short-run aggregate supply curve
changes in consumer expectations
demand-pull inflation
SRAS curve
opportunity cost
25. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
tariff
expansionary monetary policy
government expenditures
26. The payment that capital receives in the factor market.
susbtitute goods
aggregate supply curve
interest
scarce
27. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
import quotas
unit elastic
consumer taste and preferences
28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
cyclical unemployment
stagflation
perfectly elastic
29. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
trough
depression
law of supply
susbtitute goods
30. An increase in the price level
law of demand
inflation
A decrease in TR following an increase in price = elastic demand
demand elasticity
31. Expenditure by businesses on plant and equipment and the change in business invention.
disposable personal income
number of composition of consumers
economic aggregates
investment expenditures
32. Price control set when the market price is believed to be too high.
price ceiling
monopoly
normal good
unit elastic
33. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
susbtitute goods
oligopoly
normal good
Marginal Propensity to Save (MPS)
34. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
law of demand
government expenditures
Gross National Product
demand-pull inflation
35. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
government expenditures
Gross National Product
recession
oligopoly
36. The willingness and ability of buyers to purchase a good or service.
demand
hidden unemployment
business cycles
aggregate supply curve
37. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
complimentary goods
opportunity cost
market economy
38. When the percent of change in the quantity demanded equals the percent of change in price.
peak
Labor
demand curve shifts
unit elastic
39. 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.
command economy
fiscal policy
unemployment rate
structural unemployment
40. Long- run aggregate supply curve
market economy
complimentary goods
interest
LRAS curv
41. 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).
expansionary fiscal policy
inelastic demand
monetary policy
expenditure approach
42. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
market demand curve
purchasing power
marginal propensity to consume (MPC)
43. A relationship between two factors in which the factors move in the same direction.
hyperinflation
direct relationship
trade surplus
national income (NI)
44. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
expansionary fiscal policy
cyclical unemployment
command economy
frictional unemployment
45. The income of households after taxes have been paid
disposable personal income
investment expenditures
inelastic demand
rule of 70
46. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
rule of 70
business cycles
depression
47. 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.
demand
depreciation
quantity exchanged
inelastic demand
48. 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
market equilibrium
stagflation
oligopoly
49. A special tax imposed on imported goods.
number of composition of consumers
cyclical unemployment
business cycle
tariff
50. 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
inflation
unemployed
law of demand