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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. 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
depression
land
substitution effect
expansionary monetary policy
2. The amount of a good actually sold.
complimentary goods
movement along a demand curve
nominal GDP
quantity exchanged
3. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
inelastic
inferior good
purchasing power
land
4. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
price ceiling
import quotas
investment expenditures
5. The dollar value of all the goods and services sold to house holds.
purchasing power
depression
consumption expenditures
aggregate supply curve
6. 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
neutral good
entrepreneurship
rule of 70
7. Restrictions on the quantity of a good that can be imported
trade deficit
import quotas
hidden unemployment
changes in consumer expectations
8. 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.
depression
expansion
labor force
movement along a demand curve
9. The highest point of a business cycle.
LRAS curv
peak
cost-push inflation
Gross National Product
10. 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.
purchasing power
hyperinflation
inelastic demand
SRAS curve
11. Short-run aggregate supply curve
price index
susbtitute goods
microeconomics
SRAS curve
12. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.
number of composition of consumers
demand-pull inflation
demand curve shifts
expansionary monetary policy
13. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
quantity exchanged
frictional unemployment
fiscal policy
14. A curve defining the relationship between real production and price level.
LRAS curv
aggregate supply curve
inferior good
demand-pull inflation
15. The willingness and ability of buyers to purchase a good or service.
microeconomics
demand
business cycle
substitution effect
16. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
A decrease in TR following an increase in price = elastic demand
movement along a demand curve
trade surplus
depreciation
17. 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
price index
law of demand
A decrease in TR following an increase in price = elastic demand
direct relationship
18. Government officials make decisions about economy.
law of supply
resource
Marginal Propensity to Save (MPS)
command economy
19. The amount of money available to consumers to purchase goods and services.
disposable personal income
purchasing power
price floor
market equilibrium
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.
Marginal Propensity to Save (MPS)
oligopoly
depreciation
cost-push inflation
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).
scarce
expansionary fiscal policy
oligopoly
consumption expenditures
22. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
elastic
stagflation
market economy
23. Anything that shows the economy as a whole.
consumption expenditures
SRAS curve
economic aggregates
inelastic
24. 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.
purchasing power
inelastic
aggregate demand curve
unit elastic
25. 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).
tariff
stagflation
expansion
cost-push inflation
26. 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.
purchasing power
economic aggregates
stagflation
depreciation
27. 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.
expansion
exchange rate
quantity exchanged
hidden unemployment
28. 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.
inferior good
demand
trough
unemployment rate
29. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
LRAS curv
scarce
movement along a demand curve
law of demand
30. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
consumption expenditures
demand curve
market demand curve
31. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
Gross National Product
opportunity cost
macroeconomics
trough
32. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
entrepreneurship
market supply curve
changes in consumer expectations
inelastic demand
33. The price of a domestic currency in terms of a foreign currency.
trade surplus
exchange rate
real GDP
unit elastic
34. Long- run aggregate supply curve
consumer surplus
complimentary goods
LRAS curv
direct relationship
35. The addition to total revenue created by selling one additional unit of ouput.
stagflation
macroeconomics
marginal revenue
monopoly
36. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
hyperinflation
marginal revenue
Phillips curve
command economy
37. An industry structure in which there is only one seller for a product.
elastic
recession
oligopoly
monopoly
38. 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
trade surplus
depression
price ceiling
39. Price control set when the market price is believed to be too high.
price ceiling
demand curve
national economic accounts
neutral good
40. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
Phillips curve
law of demand
depression
41. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
opportunity cost
scarcity
substitution effect
land
42. The payment that capital receives in the factor market.
neutral good
interest
microeconomics
LRAS curv
43. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
macroeconomics
hidden unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expenditure approach
44. Period in which a recession becomes prolonged and deep - involving high unemployment.
money multiplier
quantity exchanged
depression
land
45. The effort of workers.
Gross National Product
inflation
recession
Labor
46. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
elastic
trade surplus
susbtitute goods
LRAS curv
47. The income of households after taxes have been paid
disposable personal income
tariff
marginal propensity to consume (MPC)
demand schedule
48. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
changes in consumer expectations
structural unemployment
demand schedule
49. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
scarcity
real GDP
diminishing marginal utility
50. A bad depressingly prolonged recession in economic activity.
expenditure approach
inflation
peak
depression