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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. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.
elastic
frictional unemployment
consumer income rise
market supply curve
2. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
fiscal policy
A decrease in TR following an increase in price = elastic demand
disposable personal income
investment expenditures
3. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
fiscal policy
command economy
aggregate supply curve
required reserve ratio (RRR)
4. The amount of a good actually sold.
SRAS curve
Phillips curve
quantity exchanged
market demand curve
5. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
structural unemployment
SRAS curve
consumer income rise
stagflation
6. Period in which a recession becomes prolonged and deep - involving high unemployment.
nominal GDP
depression
unit elastic
direct relationship
7. A shift of the demand curve resulting from a change in consumer taste and preferences.
national economic accounts
marginal propensity to consume (MPC)
consumer taste and preferences
demand
8. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
consumer taste and preferences
price floor
consumption expenditures
9. 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
tariff
recession
change in quantity demanded
10. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
inferior good
law of demand
money multiplier
real GDP
11. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
number of composition of consumers
market equilibrium
price floor
fiscal policy
12. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
labor force
expansion
market economy
susbtitute goods
13. Price control set when the market price is believed to be too high.
government expenditures
opportunity cost
aggregate supply curve
price ceiling
14. The proportion of each additional dollar of income that will go toward consumption expenditures.
money multiplier
aggregate supply curve
inelastic demand
marginal propensity to consume (MPC)
15. 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.
expenditure approach
aggregate demand curve
opportunity cost
law of demand
16. An increase or decrease in consumer income will cause a shift in the Demand Curve.
movement along a demand curve
land
tariff
consumer good
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
tariff
money multiplier
cost-push inflation
law of demand
18. An industry structure in which there is only one seller for a product.
cost-push inflation
demand curve
monopoly
oligopoly
19. When the percent of change in the quantity demanded equals the percent of change in price.
national income (NI)
economics
unit elastic
LRAS curv
20. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
quantity exchanged
depression
inverse relationship
national income (NI)
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
stagflation
business cycle
disposable personal income
22. The addition to total revenue created by selling one additional unit of ouput.
market demand curve
stagflation
disposable personal income
marginal revenue
23. 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).
market demand curve
marginal revenue
disposable personal income
demand schedule
24. The lowest point of a business cycle
price ceiling
trough
market supply curve
business cycle
25. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
price floor
scarcity
marginal revenue
recession
26. 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.
consumer good
demand schedule
investment expenditures
demand curve shifts
27. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
unemployed
market equilibrium
demand-pull inflation
demand curve
28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
labor force
market economy
susbtitute goods
command economy
29. Long- run aggregate supply curve
opportunity cost
simple money multiplier
total revenue
LRAS curv
30. 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
rule of 70
real GDP
structural unemployment
national economic accounts
31. The cost of something in terms of what one must give up to get it.
real GDP
consumer surplus
opportunity cost
depression
32. 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
law of demand
demand curve
rule of 70
nominal GDP
33. Restrictions on the quantity of a good that can be imported
frictional unemployment
elastic
import quotas
expansionary fiscal policy
34. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
diminishing marginal utility
susbtitute goods
Phillips curve
microeconomics
35. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
microeconomics
trough
stagflation
trade deficit
36. The sum of all the quantities of a good supplies by all producers at each price.
price ceiling
market supply curve
business cycles
national economic accounts
37. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of demand
consumer surplus
real GDP
38. Government officials make decisions about economy.
command economy
A decrease in TR following an increase in price = elastic demand
expansionary fiscal policy
market economy
39. A measure of the price level - or the average level of prices.
opportunity cost
price index
inflation
economics
40. Rising prices - across the board.
expansionary fiscal policy
real GDP
hidden unemployment
inflation
41. 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.
monopoly
scarce
individual choice
law of supply
42. 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).
opportunity cost
unemployment rate
Gross National Product
import quotas
43. 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.
movement along a demand curve
trade deficit
peak
elastic demand
44. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
unemployed
direct relationship
law of demand
market equilibrium
45. A bad depressingly prolonged recession in economic activity.
change in quantity demanded
inelastic
A decrease in TR following an increase in price = elastic demand
depression
46. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
business cycle
changes in consumer expectations
market economy
nominal GDP
47. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
expansion
consumption expenditures
hidden unemployment
macroeconomics
48. A curve defining the relationship between real production and price level.
fiscal policy
law of supply
trade deficit
aggregate supply curve
49. The highest point of a business cycle.
oligopoly
opportunity cost
consumer surplus
peak
50. Anything that shows the economy as a whole.
business cycles
economic aggregates
LRAS curv
frictional unemployment