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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. Price control set when the market price is believed to be too low.
market equilibrium
price floor
oligopoly
depression
2. The dollar value of all the goods and services sold to house holds.
unemployment rate
rule of 70
demand-pull inflation
consumption expenditures
3. When the percent of change in the quantity demanded equals the percent of change in price.
trade surplus
tariff
aggregate supply curve
unit elastic
4. Short-run aggregate supply curve
law of demand
scarcity
investment expenditures
SRAS curve
5. 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.
change in quantity demanded
law of supply
exchange rate
law of demand
6. Expenditure by businesses on plant and equipment and the change in business invention.
expansionary fiscal policy
investment expenditures
trade surplus
changes in consumer expectations
7. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
demand curve
market supply curve
law of demand
8. The payment that capital receives in the factor market.
demand curve shifts
interest
consumer income rise
required reserve ratio (RRR)
9. 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
inflation
real GDP
business cycle
trough
10. Government officials make decisions about economy.
command economy
inferior good
LRAS curv
elastic
11. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
inflation
expenditure approach
number of composition of consumers
business cycle
12. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
trough
land
monetary policy
13. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
import quotas
diminishing marginal utility
Gross National Product
consumption expenditures
14. 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
frictional unemployment
change in quantity demanded
number of composition of consumers
15. Consumer income rise - demand will rise.
neutral good
changes in consumer expectations
inferior good
demand elasticity
16. 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.
simple money multiplier
interest
consumer surplus
oligopoly
17. The effort of workers.
Labor
marginal propensity to consume (MPC)
national economic accounts
demand-pull inflation
18. 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
depression
trade deficit
unemployed
consumption expenditures
19. The income of households after taxes have been paid
disposable personal income
demand curve shifts
unemployed
consumer surplus
20. The income earned by households and profits earned by firms after subtracting.
change in quantity demanded
Phillips curve
national income (NI)
opportunity cost
21. 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.
unemployment rate
real GDP
frictional unemployment
susbtitute goods
22. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
scarcity
cost-push inflation
consumer income rise
national economic accounts
23. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
oligopoly
market equilibrium
A decrease in TR following an increase in price = elastic demand
expansion
24. The proportion of each additional dollar of income that will go toward consumption expenditures.
inverse relationship
peak
depreciation
marginal propensity to consume (MPC)
25. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
required reserve ratio (RRR)
market equilibrium
monopoly
inelastic
26. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
elastic
scarcity
law of supply
27. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
command economy
number of composition of consumers
inferior good
28. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expenditure approach
diminishing marginal utility
required reserve ratio (RRR)
29. 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.
market supply curve
opportunity cost
depression
demand curve shifts
30. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
substitution effect
macroeconomics
individual choice
monopoly
31. The sum of all the quantities of a good supplies by all producers at each price.
normal good
market supply curve
command economy
LRAS curv
32. 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.
depression
Gross National Product
economics
demand-pull inflation
33. 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.
LRAS curv
Phillips curve
trade surplus
elastic demand
34. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
Phillips curve
substitution effect
Gross National Product
land
35. A shift of the demand curve resulting from a change in consumer taste and preferences.
marginal revenue
SRAS curve
nominal GDP
consumer taste and preferences
36. 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
inferior good
consumer surplus
demand schedule
37. 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.
command economy
aggregate demand curve
market equilibrium
economics
38. 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.
hidden unemployment
consumption expenditures
demand elasticity
demand curve shifts
39. An increase or decrease in consumer income will cause a shift in the Demand Curve.
expenditure approach
consumer good
diminishing marginal utility
law of demand
40. Decisions by individuals about what to do and what not to do.
trade surplus
government expenditures
law of demand
individual choice
41. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?
demand elasticity
aggregate demand curve
economic aggregates
inverse relationship
42. 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.
cost-push inflation
perfectly elastic
marginal revenue
purchasing power
43. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
microeconomics
expenditure approach
stagflation
inverse relationship
44. (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.
elastic demand
Phillips curve
marginal revenue
number of composition of consumers
45. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
inelastic
demand elasticity
Gross National Product
46. An industry structure in which there is only one seller for a product.
LRAS curv
monopoly
complimentary goods
cost-push inflation
47. The dollar value of production by a country's citizens.
Gross National Product
interest
total revenue
expansion
48. Not significantly responsive to changes in price.
simple money multiplier
national economic accounts
inelastic
tariff
49. Significantly responsive to a change in price.
change in quantity demanded
SRAS curve
monopoly
elastic
50. Long- run aggregate supply curve
LRAS curv
depression
opportunity cost
elastic demand