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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. The deliberate control of the money supply by the Federal government.
monetary policy
expansionary monetary policy
trough
demand schedule
2. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand curve
diminishing marginal utility
number of composition of consumers
price floor
3. The dollar value of goods and services sold to governments.
depression
consumer good
government expenditures
law of demand
4. 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.
unit elastic
inelastic demand
hidden unemployment
inverse relationship
5. 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
normal good
microeconomics
changes in consumer expectations
unemployed
6. A special tax imposed on imported goods.
national economic accounts
total revenue
tariff
consumption expenditures
7. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
investment expenditures
cyclical unemployment
interest
8. The highest point of a business cycle.
A decrease in TR following an increase in price = elastic demand
peak
market economy
depreciation
9. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
demand curve
depression
changes in consumer expectations
labor force
10. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
inverse relationship
law of demand
total revenue
rule of 70
11. 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
change in quantity demanded
national income (NI)
expansionary monetary policy
unemployed
12. Significantly responsive to a change in price.
stagflation
Gross Domestic Product
Labor
elastic
13. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
inelastic demand
depreciation
neutral good
rule of 70
14. 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.
trough
demand curve
marginal revenue
hyperinflation
15. 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.
Gross National Product
frictional unemployment
Labor
labor force
16. The dollar value of production by a country's citizens.
SRAS curve
Gross National Product
A decrease in TR following an increase in price = elastic demand
perfectly elastic
17. An increase in the price level
expenditure approach
inflation
entrepreneurship
stagflation
18. 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.
monopoly
money multiplier
change in quantity demanded
movement along a demand curve
19. Anything that can be used to produce something else
tariff
resource
neutral good
Gross National Product
20. 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
investment expenditures
structural unemployment
trough
21. 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.
consumption expenditures
simple money multiplier
import quotas
law of demand
22. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
elastic
market demand curve
microeconomics
23. The transition point between economic recession and recovery.
macroeconomics
trough
number of composition of consumers
national income (NI)
24. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
price ceiling
market supply curve
consumer surplus
marginal propensity to consume (MPC)
25. The amount of a good actually sold.
exchange rate
command economy
demand schedule
quantity exchanged
26. The proportion of each additional dollar of income that is saved.
price index
demand elasticity
Marginal Propensity to Save (MPS)
market supply curve
27. 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.
inelastic demand
oligopoly
depreciation
inelastic
28. 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.
elastic
aggregate supply curve
perfectly elastic
real GDP
29. Not significantly responsive to changes in price.
demand curve
cost-push inflation
trade surplus
inelastic
30. A measure of the price level - or the average level of prices.
resource
economics
price floor
price index
31. Price control set when the market price is believed to be too high.
price ceiling
consumer taste and preferences
hidden unemployment
LRAS curv
32. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
marginal revenue
opportunity cost
Gross National Product
Phillips curve
33. The study of scarcity and choice.
susbtitute goods
economics
hyperinflation
business cycles
34. Period in which a recession becomes prolonged and deep - involving high unemployment.
expansionary monetary policy
law of demand
depression
Gross National Product
35. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
depression
investment expenditures
trade surplus
quantity exchanged
36. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
government expenditures
price floor
A decrease in TR following an increase in price = elastic demand
monetary policy
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.
monetary policy
entrepreneurship
microeconomics
aggregate demand curve
38. 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
resource
nominal GDP
fiscal policy
trade deficit
39. Restrictions on the quantity of a good that can be imported
import quotas
susbtitute goods
hyperinflation
recession
40. The cost of something in terms of what one must give up to get it.
consumer surplus
opportunity cost
susbtitute goods
trade deficit
41. An industry structure in which there is only one seller for a product.
monopoly
change in quantity demanded
demand elasticity
fiscal policy
42. The dollar value of all the goods and services sold to house holds.
law of supply
consumption expenditures
scarce
microeconomics
43. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
aggregate demand curve
demand curve shifts
monetary policy
entrepreneurship
44. 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.
command economy
demand curve
tariff
demand schedule
45. 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.
substitution effect
simple money multiplier
expansion
inferior good
46. Goods that go together - if price ? the demand for both that good and complimentary good ?.
demand
complimentary goods
inflation
market demand curve
47. Government officials make decisions about economy.
entrepreneurship
simple money multiplier
market supply curve
command economy
48. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
inelastic
demand elasticity
demand curve
cyclical unemployment
49. Short-run aggregate supply curve
SRAS curve
recession
national income (NI)
economic aggregates
50. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
market demand curve
expenditure approach
fiscal policy
economic aggregates