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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 country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
inverse relationship
Phillips curve
expansionary fiscal policy
trade deficit
2. 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 surplus
number of composition of consumers
inverse relationship
inferior good
3. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.
demand schedule
consumer good
investment expenditures
unemployed
4. 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).
disposable personal income
market demand curve
economic aggregates
hidden unemployment
5. The dollar value of production by a country's citizens.
national economic accounts
tariff
microeconomics
Gross National Product
6. 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.
nominal GDP
demand curve shifts
law of supply
disposable personal income
7. Price control set when the market price is believed to be too high.
Gross National Product
national income (NI)
demand curve shifts
price ceiling
8. The study of scarcity and choice.
disposable personal income
unit elastic
depreciation
economics
9. 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.
law of demand
elastic
quantity exchanged
elastic demand
10. A special tax imposed on imported goods.
tariff
rule of 70
direct relationship
price floor
11. The addition to total revenue created by selling one additional unit of ouput.
consumer taste and preferences
marginal revenue
inelastic
cyclical unemployment
12. Government officials make decisions about economy.
command economy
market supply curve
trough
law of supply
13. The long-run pattern of growth and recession.
LRAS curv
Phillips curve
exchange rate
business cycle
14. The income earned by households and profits earned by firms after subtracting.
consumer surplus
national income (NI)
aggregate demand curve
consumer taste and preferences
15. Price control set when the market price is believed to be too low.
neutral good
price floor
unemployment rate
marginal revenue
16. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
macroeconomics
market supply curve
expansion
17. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
purchasing power
land
exchange rate
scarce
18. 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).
inverse relationship
resource
economic aggregates
cost-push inflation
19. The willingness and ability of buyers to purchase a good or service.
trough
demand
law of demand
susbtitute goods
20. 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.
interest
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
perfectly elastic
depression
21. The highest point of a business cycle.
money multiplier
market economy
consumer taste and preferences
peak
22. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
investment expenditures
entrepreneurship
depression
complimentary goods
23. The dollar value of production within a nation's border.
demand curve shifts
Phillips curve
number of composition of consumers
Gross Domestic Product
24. The amount of money available to consumers to purchase goods and services.
market equilibrium
purchasing power
elastic demand
opportunity cost
25. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
real GDP
cyclical unemployment
command economy
land
26. Restrictions on the quantity of a good that can be imported
monetary policy
import quotas
demand curve
inferior good
27. Real cost of an item is its opportunity cost.
Phillips curve
marginal revenue
opportunity cost
A decrease in TR following an increase in price = elastic demand
28. 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.
Gross National Product
inelastic demand
demand curve shifts
fiscal policy
29. The dollar value of all the goods and services sold to house holds.
market demand curve
consumption expenditures
perfectly elastic
demand-pull inflation
30. Significantly responsive to a change in price.
perfectly elastic
quantity exchanged
elastic
hyperinflation
31. Anything that shows the economy as a whole.
expansionary fiscal policy
law of demand
economic aggregates
demand curve
32. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
structural unemployment
required reserve ratio (RRR)
complimentary goods
inflation
33. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
inverse relationship
price ceiling
economic aggregates
market economy
34. The transition point between economic recession and recovery.
aggregate demand curve
consumer surplus
rule of 70
trough
35. The income of households after taxes have been paid
complimentary goods
disposable personal income
market economy
opportunity cost
36. 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.
total revenue
expansionary monetary policy
labor force
opportunity cost
37. Long- run aggregate supply curve
consumer taste and preferences
LRAS curv
hyperinflation
movement along a demand curve
38. Short-run aggregate supply curve
A decrease in TR following an increase in price = elastic demand
SRAS curve
change in quantity demanded
tariff
39. Anything that can be used to produce something else
investment expenditures
frictional unemployment
inflation
resource
40. An increase in the price level
inflation
disposable personal income
consumption expenditures
market supply curve
41. The amount of a good actually sold.
quantity exchanged
unemployed
total revenue
law of supply
42. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
normal good
total revenue
macroeconomics
Gross National Product
43. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
expansionary monetary policy
LRAS curv
law of demand
44. 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.
economics
import quotas
aggregate demand curve
simple money multiplier
45. The deliberate control of the money supply by the Federal government.
opportunity cost
monetary policy
unemployment rate
consumer income rise
46. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
exchange rate
law of supply
recession
economic aggregates
47. 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?
susbtitute goods
consumption expenditures
demand curve
demand elasticity
48. 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
trade deficit
change in quantity demanded
peak
49. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
disposable personal income
hyperinflation
trade deficit
50. Consumer income rise - demand will rise.
change in quantity demanded
neutral good
changes in consumer expectations
price ceiling