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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. Significantly responsive to a change in price.
normal good
elastic
tariff
monetary policy
2. The transition point between economic recession and recovery.
resource
nominal GDP
trough
marginal revenue
3. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
business cycles
recession
individual choice
expansionary fiscal policy
4. Goods that go together - if price ? the demand for both that good and complimentary good ?.
land
complimentary goods
marginal revenue
economic aggregates
5. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
expenditure approach
marginal revenue
monetary policy
6. 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
price index
economics
command economy
7. Anything that shows the economy as a whole.
economic aggregates
depression
cost-push inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
8. A bad depressingly prolonged recession in economic activity.
required reserve ratio (RRR)
depression
inelastic
recession
9. An industry structure in which there is only one seller for a product.
market economy
monopoly
law of supply
total revenue
10. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
normal good
macroeconomics
scarce
11. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
opportunity cost
inverse relationship
market equilibrium
market economy
12. The payment that capital receives in the factor market.
peak
interest
fiscal policy
A decrease in TR following an increase in price = elastic demand
13. 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).
quantity exchanged
demand-pull inflation
unemployment rate
purchasing power
14. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
price ceiling
oligopoly
aggregate supply curve
scarce
15. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
frictional unemployment
law of supply
neutral good
16. Rising prices - across the board.
Gross National Product
economics
inflation
demand curve shifts
17. The highest point of a business cycle.
Labor
microeconomics
peak
cost-push inflation
18. The cost of something in terms of what one must give up to get it.
opportunity cost
peak
inelastic demand
resource
19. Long- run aggregate supply curve
LRAS curv
economic aggregates
depression
marginal propensity to consume (MPC)
20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
expenditure approach
simple money multiplier
price ceiling
21. 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.
expansion
trough
depreciation
oligopoly
22. The dollar value of production by a country's citizens.
command economy
trough
entrepreneurship
Gross National Product
23. The proportion of each additional dollar of income that will go toward consumption expenditures.
trough
marginal propensity to consume (MPC)
disposable personal income
market economy
24. 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
recession
consumption expenditures
trough
25. 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
law of demand
A decrease in TR following an increase in price = elastic demand
interest
economic aggregates
26. 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.
business cycle
aggregate demand curve
labor force
import quotas
27. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
expenditure approach
tariff
rule of 70
28. 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.
change in quantity demanded
stagflation
trade deficit
changes in consumer expectations
29. 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
nominal GDP
demand schedule
demand
A decrease in TR following an increase in price = elastic demand
30. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
movement along a demand curve
Phillips curve
perfectly elastic
exchange rate
31. The lowest point of a business cycle
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unemployed
interest
trough
32. Fluctuations in real GDP around the trend value; also called economic fluctuations.
perfectly elastic
macroeconomics
business cycles
quantity exchanged
33. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
law of demand
substitution effect
peak
susbtitute goods
34. The amount of a good actually sold.
government expenditures
rule of 70
quantity exchanged
individual choice
35. The effort of workers.
Labor
national income (NI)
opportunity cost
consumer good
36. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
demand-pull inflation
consumer surplus
consumer income rise
interest
37. An increase in the price level
depression
cyclical unemployment
inflation
disposable personal income
38. The long-run pattern of growth and recession.
structural unemployment
business cycle
expansionary monetary policy
business cycles
39. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
demand curve
law of demand
Labor
A decrease in TR following an increase in price = elastic demand
40. A Latin phrase meaning 'all things constant.'
consumption expenditures
Gross Domestic Product
real GDP
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
41. A relationship between two factors in which the factors move in the same direction.
demand curve
simple money multiplier
direct relationship
perfectly elastic
42. The addition to total revenue created by selling one additional unit of ouput.
elastic
inelastic demand
marginal revenue
business cycle
43. The proportion of each additional dollar of income that is saved.
resource
unemployment rate
Marginal Propensity to Save (MPS)
consumer surplus
44. The income of households after taxes have been paid
disposable personal income
consumer good
Labor
trough
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.
trade deficit
real GDP
demand curve shifts
demand-pull inflation
46. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
price ceiling
diminishing marginal utility
oligopoly
demand curve
47. 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.
money multiplier
price ceiling
demand schedule
structural unemployment
48. The study of scarcity and choice.
susbtitute goods
law of demand
economics
purchasing power
49. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
trade deficit
Phillips curve
movement along a demand curve
50. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
marginal revenue
expansionary monetary policy
trade surplus
opportunity cost