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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. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
trade surplus
Gross National Product
law of demand
2. A relationship between two factors in which the factors move in the same direction.
inflation
microeconomics
direct relationship
national income (NI)
3. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
law of demand
expenditure approach
Marginal Propensity to Save (MPS)
import quotas
4. 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.
structural unemployment
disposable personal income
oligopoly
demand-pull inflation
5. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
demand
national economic accounts
law of supply
consumer taste and preferences
6. The addition to total revenue created by selling one additional unit of ouput.
Marginal Propensity to Save (MPS)
inferior good
marginal revenue
A decrease in TR following an increase in price = elastic demand
7. 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.
expansionary monetary policy
Labor
required reserve ratio (RRR)
hidden unemployment
8. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
cost-push inflation
market equilibrium
normal good
interest
9. Fluctuations in real GDP around the trend value; also called economic fluctuations.
market supply curve
depression
business cycles
total revenue
10. An industry structure in which there is only one seller for a product.
inferior good
monopoly
consumer taste and preferences
purchasing power
11. Government officials make decisions about economy.
command economy
trade surplus
trough
inverse relationship
12. 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
business cycles
law of supply
consumer taste and preferences
13. The proportion of each additional dollar of income that is saved.
nominal GDP
labor force
Marginal Propensity to Save (MPS)
inflation
14. The price of a domestic currency in terms of a foreign currency.
expenditure approach
exchange rate
number of composition of consumers
change in quantity demanded
15. (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.
import quotas
market supply curve
normal good
number of composition of consumers
16. Anything that can be used to produce something else
law of supply
resource
demand curve
national economic accounts
17. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
macroeconomics
required reserve ratio (RRR)
A decrease in TR following an increase in price = elastic demand
disposable personal income
18. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
peak
purchasing power
inflation
required reserve ratio (RRR)
19. Not significantly responsive to changes in price.
inflation
LRAS curv
inelastic
economic aggregates
20. A curve defining the relationship between real production and price level.
simple money multiplier
aggregate supply curve
opportunity cost
normal good
21. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
trade deficit
opportunity cost
Phillips curve
demand elasticity
22. The dollar value of production by a country's citizens.
Gross National Product
exchange rate
opportunity cost
interest
23. 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 surplus
Labor
demand schedule
business cycle
24. The proportion of each additional dollar of income that will go toward consumption expenditures.
changes in consumer expectations
consumption expenditures
marginal propensity to consume (MPC)
total revenue
25. 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.
microeconomics
perfectly elastic
LRAS curv
elastic demand
26. 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
demand-pull inflation
monetary policy
market equilibrium
27. The dollar value of production within a nation's border.
Gross Domestic Product
perfectly elastic
rule of 70
normal good
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
perfectly elastic
monopoly
microeconomics
29. 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
market equilibrium
quantity exchanged
expansionary monetary policy
movement along a demand curve
30. Period in which a recession becomes prolonged and deep - involving high unemployment.
opportunity cost
depression
depreciation
frictional unemployment
31. 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.
market equilibrium
stagflation
hyperinflation
susbtitute goods
32. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
demand
recession
national income (NI)
hidden unemployment
33. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
cost-push inflation
diminishing marginal utility
peak
34. 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
expansion
marginal propensity to consume (MPC)
nominal GDP
35. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
normal good
movement along a demand curve
demand
inverse relationship
36. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
demand-pull inflation
consumer good
trough
37. The cost of something in terms of what one must give up to get it.
opportunity cost
national income (NI)
normal good
law of demand
38. The payment that capital receives in the factor market.
interest
money multiplier
real GDP
direct relationship
39. Long- run aggregate supply curve
LRAS curv
hidden unemployment
labor force
unemployed
40. A measure of the price level - or the average level of prices.
total revenue
law of demand
price index
national income (NI)
41. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
national income (NI)
recession
law of demand
42. An increase or decrease in consumer income will cause a shift in the Demand Curve.
market equilibrium
rule of 70
consumer good
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
43. Short-run aggregate supply curve
aggregate supply curve
inferior good
marginal revenue
SRAS curve
44. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
opportunity cost
substitution effect
fiscal policy
command economy
45. The dollar value of all the goods and services sold to house holds.
hidden unemployment
consumption expenditures
expenditure approach
Phillips curve
46. Decisions by individuals about what to do and what not to do.
individual choice
inverse relationship
inelastic demand
business cycle
47. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
government expenditures
interest
trade deficit
48. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
depreciation
marginal propensity to consume (MPC)
inverse relationship
trade surplus
49. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
Marginal Propensity to Save (MPS)
market supply curve
stagflation
money multiplier
50. The highest point of a business cycle.
stagflation
peak
cost-push inflation
law of demand