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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. Decisions by individuals about what to do and what not to do.
aggregate demand curve
individual choice
Gross National Product
consumer good
2. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
depression
depreciation
Phillips curve
market demand curve
3. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
depression
national economic accounts
SRAS curve
4. The study of scarcity and choice.
economics
changes in consumer expectations
Phillips curve
movement along a demand curve
5. The payment that capital receives in the factor market.
number of composition of consumers
market demand curve
interest
neutral good
6. A shift of the demand curve resulting from a change in consumer taste and preferences.
inflation
expenditure approach
demand schedule
consumer taste and preferences
7. An increase or decrease in consumer income will cause a shift in the Demand Curve.
price ceiling
exchange rate
consumer good
labor force
8. Goods that go together - if price ? the demand for both that good and complimentary good ?.
expenditure approach
expansionary monetary policy
complimentary goods
disposable personal income
9. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.
perfectly elastic
diminishing marginal utility
opportunity cost
resource
10. The long-run pattern of growth and recession.
command economy
business cycle
changes in consumer expectations
peak
11. 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.
stagflation
depression
elastic demand
substitution effect
12. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
command economy
substitution effect
Phillips curve
inflation
13. 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
macroeconomics
disposable personal income
law of demand
total revenue
14. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
price index
labor force
land
movement along a demand curve
15. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
command economy
oligopoly
required reserve ratio (RRR)
16. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
number of composition of consumers
unemployed
direct relationship
17. 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
opportunity cost
individual choice
nominal GDP
consumer surplus
18. The amount of money available to consumers to purchase goods and services.
Gross National Product
purchasing power
total revenue
money multiplier
19. 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.
consumer good
inferior good
economic aggregates
quantity exchanged
20. 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.
law of demand
disposable personal income
frictional unemployment
complimentary goods
21. 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
monopoly
Gross National Product
unemployment rate
22. The dollar value of production within a nation's border.
national income (NI)
law of demand
opportunity cost
Gross Domestic Product
23. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
Phillips curve
Labor
trade surplus
depression
24. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
law of supply
number of composition of consumers
entrepreneurship
scarcity
25. The dollar value of goods and services sold to governments.
demand curve
government expenditures
direct relationship
demand schedule
26. The sum of all the quantities of a good supplies by all producers at each price.
demand curve
market supply curve
movement along a demand curve
demand schedule
27. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
expansionary fiscal policy
stagflation
inelastic
market equilibrium
28. 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.
LRAS curv
demand curve shifts
interest
law of supply
29. A bad depressingly prolonged recession in economic activity.
labor force
LRAS curv
demand curve
depression
30. 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).
expansionary fiscal policy
LRAS curv
cost-push inflation
demand curve shifts
31. Real cost of an item is its opportunity cost.
marginal propensity to consume (MPC)
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market equilibrium
opportunity cost
32. The cost of something in terms of what one must give up to get it.
opportunity cost
trough
Marginal Propensity to Save (MPS)
perfectly elastic
33. Expenditure by businesses on plant and equipment and the change in business invention.
demand elasticity
investment expenditures
hyperinflation
resource
34. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
movement along a demand curve
susbtitute goods
direct relationship
fiscal policy
35. The income of households after taxes have been paid
trough
labor force
disposable personal income
national economic accounts
36. Consumer income rise - demand will rise.
movement along a demand curve
command economy
expansion
neutral good
37. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
aggregate supply curve
law of demand
SRAS curve
change in quantity demanded
38. 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).
demand curve
government expenditures
market demand curve
cost-push inflation
39. 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.
oligopoly
expenditure approach
price ceiling
inflation
40. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
direct relationship
consumption expenditures
expansionary monetary policy
changes in consumer expectations
41. 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).
structural unemployment
unemployment rate
change in quantity demanded
business cycles
42. The willingness and ability of buyers to purchase a good or service.
land
consumption expenditures
SRAS curve
demand
43. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
Marginal Propensity to Save (MPS)
scarce
perfectly elastic
44. The highest point of a business cycle.
hidden unemployment
real GDP
unemployed
peak
45. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
market supply curve
unemployed
depression
46. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
expansionary fiscal policy
A decrease in TR following an increase in price = elastic demand
law of demand
marginal propensity to consume (MPC)
47. The dollar value of production by a country's citizens.
price index
Gross National Product
tariff
aggregate supply curve
48. 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.
changes in consumer expectations
simple money multiplier
scarce
Gross Domestic Product
49. 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.
inelastic
microeconomics
consumer taste and preferences
scarce
50. 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.
price ceiling
monopoly
labor force
expansion