SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
number of composition of consumers
movement along a demand curve
national economic accounts
market equilibrium
2. 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.
law of supply
changes in consumer expectations
aggregate supply curve
monetary policy
3. The willingness and ability of buyers to purchase a good or service.
demand
government expenditures
law of supply
Labor
4. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.
trade deficit
interest
demand-pull inflation
LRAS curv
5. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
demand curve shifts
inelastic demand
opportunity cost
trade deficit
6. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
real GDP
neutral good
depression
A decrease in TR following an increase in price = elastic demand
7. 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.
change in quantity demanded
purchasing power
price index
expenditure approach
8. The income earned by households and profits earned by firms after subtracting.
national income (NI)
price index
opportunity cost
movement along a demand curve
9. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
opportunity cost
fiscal policy
unemployed
peak
10. Rising prices - across the board.
peak
economic aggregates
trade surplus
inflation
11. A curve defining the relationship between real production and price level.
scarce
national economic accounts
consumer taste and preferences
aggregate supply curve
12. Goods that go together - if price ? the demand for both that good and complimentary good ?.
required reserve ratio (RRR)
complimentary goods
monetary policy
susbtitute goods
13. 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.
disposable personal income
Gross Domestic Product
frictional unemployment
consumer income rise
14. Price control set when the market price is believed to be too high.
consumer good
price ceiling
recession
oligopoly
15. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
demand curve
consumer surplus
monopoly
LRAS curv
16. A relationship between two factors in which the factors move in the same direction.
unit elastic
national economic accounts
frictional unemployment
direct relationship
17. The dollar value of production by a country's citizens.
unit elastic
consumer taste and preferences
price ceiling
Gross National Product
18. Long- run aggregate supply curve
depression
exchange rate
business cycles
LRAS curv
19. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
direct relationship
SRAS curve
cyclical unemployment
law of demand
20. 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).
law of supply
unemployment rate
market supply curve
economic aggregates
21. 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.
simple money multiplier
consumption expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
susbtitute goods
22. 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.
consumer surplus
hidden unemployment
import quotas
stagflation
23. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
demand elasticity
hyperinflation
substitution effect
individual choice
24. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
national income (NI)
labor force
price ceiling
25. 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).
Marginal Propensity to Save (MPS)
tariff
national economic accounts
market demand curve
26. The income of households after taxes have been paid
fiscal policy
frictional unemployment
price ceiling
disposable personal income
27. The payment that capital receives in the factor market.
market demand curve
economics
cost-push inflation
interest
28. The dollar value of production within a nation's border.
expenditure approach
demand-pull inflation
national economic accounts
Gross Domestic Product
29. The proportion of each additional dollar of income that is saved.
labor force
Marginal Propensity to Save (MPS)
demand curve
import quotas
30. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
expansionary fiscal policy
land
opportunity cost
required reserve ratio (RRR)
31. 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).
cost-push inflation
demand curve
national economic accounts
consumer surplus
32. 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.
demand schedule
complimentary goods
individual choice
stagflation
33. 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.
market demand curve
diminishing marginal utility
aggregate demand curve
consumer taste and preferences
34. Decisions by individuals about what to do and what not to do.
individual choice
recession
consumer good
fiscal policy
35. 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
nominal GDP
change in quantity demanded
real GDP
command economy
36. Real cost of an item is its opportunity cost.
opportunity cost
unit elastic
scarce
purchasing power
37. A measure of the price level - or the average level of prices.
price index
inelastic
Marginal Propensity to Save (MPS)
aggregate demand curve
38. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
direct relationship
rule of 70
marginal revenue
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.
structural unemployment
inferior good
demand schedule
stagflation
40. Restrictions on the quantity of a good that can be imported
recession
macroeconomics
import quotas
expansionary fiscal policy
41. The effort of workers.
frictional unemployment
purchasing power
trade surplus
Labor
42. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
scarcity
required reserve ratio (RRR)
consumer good
43. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
demand-pull inflation
market demand curve
susbtitute goods
market economy
44. 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
susbtitute goods
Labor
demand
45. Anything that can be used to produce something else
susbtitute goods
resource
market demand curve
command economy
46. The price of a domestic currency in terms of a foreign currency.
hidden unemployment
inflation
exchange rate
fiscal policy
47. The sum of all the quantities of a good supplies by all producers at each price.
inelastic demand
market supply curve
tariff
elastic
48. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
investment expenditures
Labor
inferior good
scarcity
49. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
scarcity
Phillips curve
exchange rate
opportunity cost
50. 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?
expenditure approach
resource
consumer surplus
demand elasticity