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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 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
complimentary goods
monetary policy
disposable personal income
2. The study of scarcity and choice.
economics
number of composition of consumers
price floor
money multiplier
3. 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).
rule of 70
market demand curve
aggregate supply curve
elastic
4. Goods that go together - if price ? the demand for both that good and complimentary good ?.
scarce
complimentary goods
market demand curve
demand elasticity
5. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
opportunity cost
microeconomics
total revenue
macroeconomics
6. The highest point of a business cycle.
peak
trough
depression
neutral good
7. The long-run pattern of growth and recession.
A decrease in TR following an increase in price = elastic demand
business cycle
marginal revenue
change in quantity demanded
8. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
demand schedule
import quotas
direct relationship
9. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
complimentary goods
changes in consumer expectations
expansion
law of demand
10. The effort of workers.
tariff
resource
Labor
Gross Domestic Product
11. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
inelastic
resource
consumer income rise
normal good
12. Consumer income rise - demand will rise.
neutral good
price index
inferior good
peak
13. The income of households after taxes have been paid
perfectly elastic
disposable personal income
market equilibrium
consumer surplus
14. Not significantly responsive to changes in price.
inelastic
depression
market equilibrium
purchasing power
15. A measure of the price level - or the average level of prices.
hyperinflation
price index
resource
market equilibrium
16. 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
price ceiling
marginal revenue
hidden unemployment
real GDP
17. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
trough
fiscal policy
trade surplus
microeconomics
18. The transition point between economic recession and recovery.
aggregate demand curve
hyperinflation
trough
A decrease in TR following an increase in price = elastic demand
19. The income earned by households and profits earned by firms after subtracting.
national income (NI)
Gross National Product
consumption expenditures
law of supply
20. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
price ceiling
consumer income rise
macroeconomics
depression
21. A bad depressingly prolonged recession in economic activity.
depression
number of composition of consumers
hidden unemployment
real GDP
22. 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
import quotas
tariff
law of demand
expansionary monetary policy
23. An industry structure in which there is only one seller for a product.
demand schedule
cost-push inflation
depreciation
monopoly
24. 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
stagflation
substitution effect
resource
25. 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.
import quotas
demand curve
inferior good
complimentary goods
26. 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 shifts
inverse relationship
structural unemployment
27. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
stagflation
A decrease in TR following an increase in price = elastic demand
price ceiling
trough
28. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarcity
scarce
normal good
investment expenditures
29. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
depression
price index
market economy
investment expenditures
30. Price control set when the market price is believed to be too high.
inflation
trade deficit
price ceiling
marginal propensity to consume (MPC)
31. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc
consumer income rise
tariff
unemployed
price ceiling
32. A relationship between two factors in which the factors move in the same direction.
depreciation
direct relationship
labor force
quantity exchanged
33. Rising prices - across the board.
real GDP
purchasing power
individual choice
inflation
34. 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.
market demand curve
total revenue
structural unemployment
aggregate demand curve
35. The amount of money available to consumers to purchase goods and services.
recession
business cycle
purchasing power
diminishing marginal utility
36. The dollar value of production by a country's citizens.
economic aggregates
stagflation
Gross National Product
trade surplus
37. 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.
import quotas
inflation
simple money multiplier
money multiplier
38. The sum of all the quantities of a good supplies by all producers at each price.
stagflation
market supply curve
unemployment rate
cost-push inflation
39. The payment that capital receives in the factor market.
microeconomics
susbtitute goods
elastic
interest
40. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
demand elasticity
inflation
susbtitute goods
41. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
rule of 70
market demand curve
consumer income rise
42. Real cost of an item is its opportunity cost.
opportunity cost
depression
market equilibrium
national economic accounts
43. A special tax imposed on imported goods.
tariff
stagflation
interest
real GDP
44. The dollar value of goods and services sold to governments.
market equilibrium
demand
government expenditures
cyclical unemployment
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.
demand-pull inflation
market equilibrium
expansionary monetary policy
consumer good
46. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
number of composition of consumers
monopoly
cyclical unemployment
inverse relationship
47. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
disposable personal income
market economy
demand schedule
48. 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.
direct relationship
market demand curve
inferior good
change in quantity demanded
49. Fluctuations in real GDP around the trend value; also called economic fluctuations.
Gross National Product
price index
inflation
business cycles
50. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
real GDP
price index
required reserve ratio (RRR)
structural unemployment