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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 difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
Marginal Propensity to Save (MPS)
marginal propensity to consume (MPC)
consumer surplus
consumer taste and preferences
2. 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.
law of demand
demand schedule
consumer income rise
real GDP
3. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
law of supply
rule of 70
inelastic
4. 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.
movement along a demand curve
import quotas
unemployed
labor force
5. 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.
aggregate demand curve
labor force
trough
individual choice
6. The dollar value of all the goods and services sold to house holds.
business cycle
purchasing power
demand elasticity
consumption expenditures
7. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
purchasing power
Gross Domestic Product
number of composition of consumers
8. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
depreciation
consumption expenditures
monopoly
9. Government officials make decisions about economy.
complimentary goods
trade surplus
marginal revenue
command economy
10. Real cost of an item is its opportunity cost.
number of composition of consumers
cost-push inflation
monetary policy
opportunity cost
11. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
command economy
diminishing marginal utility
import quotas
12. The payment that capital receives in the factor market.
marginal revenue
interest
market equilibrium
frictional unemployment
13. The deliberate control of the money supply by the Federal government.
monetary policy
unit elastic
demand-pull inflation
national economic accounts
14. The income earned by households and profits earned by firms after subtracting.
opportunity cost
demand curve
national income (NI)
trade deficit
15. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
demand schedule
resource
command economy
16. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.
LRAS curv
Labor
hyperinflation
complimentary goods
17. An increase or decrease in consumer income will cause a shift in the Demand Curve.
substitution effect
market supply curve
simple money multiplier
consumer good
18. 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
exchange rate
fiscal policy
frictional unemployment
19. The transition point between economic recession and recovery.
normal good
trough
susbtitute goods
unemployed
20. Price control set when the market price is believed to be too low.
depreciation
aggregate supply curve
inferior good
price floor
21. 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
demand curve
inferior good
susbtitute goods
22. The lowest point of a business cycle
trough
opportunity cost
recession
economics
23. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
scarce
opportunity cost
expansionary monetary policy
24. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
stagflation
money multiplier
inelastic demand
SRAS curve
25. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
interest
trough
economic aggregates
26. A special tax imposed on imported goods.
tariff
inflation
business cycles
import quotas
27. The income of households after taxes have been paid
trough
disposable personal income
national economic accounts
aggregate demand curve
28. The addition to total revenue created by selling one additional unit of ouput.
consumer income rise
scarcity
national economic accounts
marginal revenue
29. 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?
price ceiling
demand elasticity
total revenue
depression
30. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
inverse relationship
economic aggregates
cyclical unemployment
business cycle
31. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
monopoly
money multiplier
expansionary fiscal policy
32. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
disposable personal income
oligopoly
market equilibrium
33. Rising prices - across the board.
price ceiling
inflation
consumer taste and preferences
microeconomics
34. Not significantly responsive to changes in price.
inelastic
unemployed
cost-push inflation
A decrease in TR following an increase in price = elastic demand
35. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
scarcity
land
inferior good
susbtitute goods
36. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
inflation
oligopoly
elastic demand
37. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
command economy
market demand curve
demand curve shifts
expansion
38. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
inflation
opportunity cost
trade deficit
nominal GDP
39. A measure of the price level - or the average level of prices.
price index
disposable personal income
Gross National Product
nominal GDP
40. The dollar value of production by a country's citizens.
Gross National Product
Marginal Propensity to Save (MPS)
market equilibrium
national income (NI)
41. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
national economic accounts
market equilibrium
monopoly
market economy
42. The amount of money available to consumers to purchase goods and services.
aggregate supply curve
Marginal Propensity to Save (MPS)
purchasing power
exchange rate
43. The long-run pattern of growth and recession.
import quotas
stagflation
business cycle
total revenue
44. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
structural unemployment
law of demand
Marginal Propensity to Save (MPS)
consumer income rise
45. 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.
Gross National Product
frictional unemployment
demand-pull inflation
perfectly elastic
46. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
economic aggregates
stagflation
substitution effect
price floor
47. Price control set when the market price is believed to be too high.
price ceiling
investment expenditures
SRAS curve
price index
48. 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).
oligopoly
market demand curve
depreciation
neutral good
49. The sum of all the quantities of a good supplies by all producers at each price.
structural unemployment
simple money multiplier
Labor
market supply curve
50. 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
substitution effect
macroeconomics
Ceteris Paribus (sayr-iht-us pahr-ih-bos)