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Test your basic knowledge |
AP Macroeconomics
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Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
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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 good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
exchange rate
nominal GDP
normal good
susbtitute goods
2. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
investment expenditures
fiscal policy
law of demand
peak
3. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
Gross Domestic Product
recession
demand elasticity
market economy
4. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
demand-pull inflation
inflation
changes in consumer expectations
5. Not significantly responsive to changes in price.
inelastic
consumer good
government expenditures
Gross Domestic Product
6. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
law of demand
nominal GDP
investment expenditures
7. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
law of demand
peak
unit elastic
8. Long- run aggregate supply curve
elastic
LRAS curv
perfectly elastic
scarce
9. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
frictional unemployment
expenditure approach
recession
Labor
10. 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.
hyperinflation
structural unemployment
number of composition of consumers
consumer surplus
11. Anything that shows the economy as a whole.
structural unemployment
market economy
market equilibrium
economic aggregates
12. 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
consumer taste and preferences
real GDP
LRAS curv
expansionary monetary policy
13. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
unit elastic
purchasing power
demand curve
scarcity
14. The deliberate control of the money supply by the Federal government.
monetary policy
Gross National Product
individual choice
recession
15. The dollar value of production by a country's citizens.
demand curve
market equilibrium
Gross National Product
consumer taste and preferences
16. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
interest
scarce
hidden unemployment
cyclical unemployment
17. The price of a domestic currency in terms of a foreign currency.
exchange rate
resource
opportunity cost
simple money multiplier
18. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.
consumer good
hyperinflation
inflation
demand curve
19. 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.
inflation
inverse relationship
market equilibrium
aggregate demand curve
20. 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.
scarcity
inelastic demand
economics
Phillips curve
21. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
scarcity
unemployed
business cycle
22. 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.
neutral good
hidden unemployment
economic aggregates
scarce
23. Fluctuations in real GDP around the trend value; also called economic fluctuations.
inflation
elastic demand
business cycles
disposable personal income
24. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
expenditure approach
scarce
market economy
Marginal Propensity to Save (MPS)
25. 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
expansion
demand elasticity
scarce
26. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.
government expenditures
perfectly elastic
monopoly
demand curve shifts
27. 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
real GDP
trough
exchange rate
marginal propensity to consume (MPC)
28. An industry structure in which there is only one seller for a product.
resource
trough
monopoly
disposable personal income
29. The amount of a good actually sold.
quantity exchanged
unemployment rate
complimentary goods
command economy
30. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
trade surplus
Marginal Propensity to Save (MPS)
trade deficit
Phillips curve
31. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
A decrease in TR following an increase in price = elastic demand
inflation
law of demand
opportunity cost
32. The lowest point of a business cycle
entrepreneurship
trough
inelastic
market demand curve
33. Restrictions on the quantity of a good that can be imported
import quotas
market supply curve
substitution effect
law of demand
34. Decisions by individuals about what to do and what not to do.
simple money multiplier
marginal propensity to consume (MPC)
import quotas
individual choice
35. 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.
microeconomics
elastic demand
demand elasticity
neutral good
36. A curve defining the relationship between real production and price level.
price floor
monopoly
national economic accounts
aggregate supply curve
37. The payment that capital receives in the factor market.
complimentary goods
interest
recession
business cycles
38. 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.
economic aggregates
simple money multiplier
entrepreneurship
expenditure approach
39. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
nominal GDP
economic aggregates
interest
40. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
labor force
expansion
exchange rate
trade deficit
41. 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.
depreciation
consumer surplus
expansionary monetary policy
inferior good
42. 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
demand curve
required reserve ratio (RRR)
inelastic demand
unemployed
43. Goods that go together - if price ? the demand for both that good and complimentary good ?.
consumption expenditures
movement along a demand curve
trough
complimentary goods
44. A bad depressingly prolonged recession in economic activity.
complimentary goods
monetary policy
depression
inelastic demand
45. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc
rule of 70
demand-pull inflation
scarce
expansionary fiscal policy
46. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
perfectly elastic
law of demand
required reserve ratio (RRR)
scarce
47. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.
trough
marginal revenue
perfectly elastic
economics
48. Government officials make decisions about economy.
consumer good
depression
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
command economy
49. Real cost of an item is its opportunity cost.
purchasing power
diminishing marginal utility
opportunity cost
inelastic
50. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
hidden unemployment
normal good
elastic demand
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