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Test your basic knowledge |
AP Macroeconomics
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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. When the percent of change in the quantity demanded equals the percent of change in price.
investment expenditures
economic aggregates
unit elastic
expansionary fiscal policy
2. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
resource
normal good
nominal GDP
economics
3. Period in which a recession becomes prolonged and deep - involving high unemployment.
normal good
law of demand
depression
expenditure approach
4. The dollar value of production by a country's citizens.
movement along a demand curve
Gross National Product
inflation
unit elastic
5. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
consumer taste and preferences
fiscal policy
entrepreneurship
trade deficit
6. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
resource
disposable personal income
expenditure approach
7. The effort of workers.
consumer income rise
land
Labor
market equilibrium
8. Government officials make decisions about economy.
national income (NI)
command economy
aggregate supply curve
law of supply
9. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trough
price ceiling
trade deficit
inelastic demand
10. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
price floor
land
elastic demand
purchasing power
11. The proportion of each additional dollar of income that will go toward consumption expenditures.
consumption expenditures
cost-push inflation
marginal propensity to consume (MPC)
disposable personal income
12. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
expansionary monetary policy
trough
change in quantity demanded
money multiplier
13. Rising prices - across the board.
inflation
national income (NI)
fiscal policy
change in quantity demanded
14. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
tariff
required reserve ratio (RRR)
inverse relationship
marginal revenue
15. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
business cycle
tariff
consumption expenditures
16. 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
aggregate demand curve
expansion
labor force
17. 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.
individual choice
change in quantity demanded
aggregate supply curve
national income (NI)
18. 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).
expansionary fiscal policy
normal good
consumer income rise
resource
19. 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
market demand curve
law of demand
aggregate demand curve
exchange rate
20. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
structural unemployment
inflation
Marginal Propensity to Save (MPS)
21. Significantly responsive to a change in price.
market economy
monopoly
marginal propensity to consume (MPC)
elastic
22. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
marginal propensity to consume (MPC)
market equilibrium
structural unemployment
elastic
23. The proportion of each additional dollar of income that is saved.
Gross Domestic Product
trade surplus
fiscal policy
Marginal Propensity to Save (MPS)
24. The payment that capital receives in the factor market.
demand schedule
marginal revenue
diminishing marginal utility
interest
25. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
cyclical unemployment
command economy
required reserve ratio (RRR)
scarcity
26. Expenditure by businesses on plant and equipment and the change in business invention.
substitution effect
investment expenditures
resource
marginal revenue
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.
demand curve
market supply curve
peak
scarce
28. The dollar value of all the goods and services sold to house holds.
quantity exchanged
hidden unemployment
consumption expenditures
expenditure approach
29. Anything that shows the economy as a whole.
hyperinflation
government expenditures
rule of 70
economic aggregates
30. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
changes in consumer expectations
substitution effect
rule of 70
demand elasticity
31. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
Gross Domestic Product
consumer taste and preferences
national economic accounts
32. 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).
exchange rate
resource
recession
cost-push inflation
33. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
diminishing marginal utility
law of demand
depreciation
demand elasticity
34. 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.
recession
demand
inferior good
perfectly elastic
35. The amount of a good actually sold.
market economy
cost-push inflation
quantity exchanged
substitution effect
36. (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.
inferior good
number of composition of consumers
unemployment rate
cyclical unemployment
37. 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.
business cycles
trough
scarcity
microeconomics
38. The study of scarcity and choice.
national economic accounts
exchange rate
economics
consumer surplus
39. Consumer income rise - demand will rise.
hyperinflation
opportunity cost
neutral good
number of composition of consumers
40. 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.
trade deficit
inverse relationship
demand schedule
resource
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.
unit elastic
law of supply
scarcity
demand curve
42. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
opportunity cost
Gross National Product
demand curve shifts
diminishing marginal utility
43. 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
trade deficit
command economy
nominal GDP
inflation
44. Goods that go together - if price ? the demand for both that good and complimentary good ?.
Marginal Propensity to Save (MPS)
complimentary goods
SRAS curve
Labor
45. 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.
law of supply
substitution effect
demand curve shifts
simple money multiplier
46. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
unemployed
consumer taste and preferences
hidden unemployment
47. Long- run aggregate supply curve
unemployment rate
unemployed
LRAS curv
labor force
48. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
investment expenditures
LRAS curv
total revenue
market supply curve
49. The income earned by households and profits earned by firms after subtracting.
quantity exchanged
money multiplier
national income (NI)
law of demand
50. Anything that can be used to produce something else
unit elastic
resource
macroeconomics
trough
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