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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. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
expansionary monetary policy
frictional unemployment
depreciation
number of composition of consumers
2. Price control set when the market price is believed to be too low.
price floor
recession
trough
law of supply
3. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).
inferior good
unemployment rate
consumer surplus
inflation
4. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
entrepreneurship
tariff
law of supply
5. 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.
macroeconomics
labor force
expansionary monetary policy
perfectly elastic
6. 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
fiscal policy
change in quantity demanded
expansionary monetary policy
7. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
entrepreneurship
land
nominal GDP
change in quantity demanded
8. 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).
depression
LRAS curv
substitution effect
expansionary fiscal policy
9. 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
labor force
simple money multiplier
market supply curve
rule of 70
10. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
recession
LRAS curv
macroeconomics
scarcity
11. 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).
inferior good
change in quantity demanded
cost-push inflation
trade surplus
12. The highest point of a business cycle.
expansionary fiscal policy
expansionary monetary policy
peak
consumer surplus
13. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
opportunity cost
expenditure approach
susbtitute goods
Gross Domestic Product
14. 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.
elastic
demand schedule
change in quantity demanded
Gross National Product
15. 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.
land
stagflation
disposable personal income
expenditure approach
16. An increase or decrease in consumer income will cause a shift in the Demand Curve.
unemployed
consumer good
depression
economics
17. The deliberate control of the money supply by the Federal government.
unemployed
peak
monetary policy
labor force
18. The amount of a good actually sold.
market demand curve
change in quantity demanded
stagflation
quantity exchanged
19. A bad depressingly prolonged recession in economic activity.
depression
diminishing marginal utility
unit elastic
A decrease in TR following an increase in price = elastic demand
20. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
structural unemployment
Phillips curve
trade surplus
market economy
21. Anything that shows the economy as a whole.
disposable personal income
susbtitute goods
price ceiling
economic aggregates
22. 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.
substitution effect
simple money multiplier
Gross Domestic Product
oligopoly
23. The dollar value of production by a country's citizens.
diminishing marginal utility
aggregate demand curve
total revenue
Gross National Product
24. 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?
inferior good
money multiplier
consumer surplus
demand elasticity
25. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
elastic demand
total revenue
movement along a demand curve
26. The addition to total revenue created by selling one additional unit of ouput.
market economy
marginal revenue
quantity exchanged
complimentary goods
27. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
hyperinflation
diminishing marginal utility
business cycle
elastic demand
28. Short-run aggregate supply curve
SRAS curve
tariff
consumer income rise
aggregate supply curve
29. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
monetary policy
A decrease in TR following an increase in price = elastic demand
demand curve shifts
total revenue
30. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
consumer taste and preferences
peak
A decrease in TR following an increase in price = elastic demand
microeconomics
31. Rising prices - across the board.
expansionary fiscal policy
consumer taste and preferences
inverse relationship
inflation
32. 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.
demand curve shifts
depression
entrepreneurship
fiscal policy
33. The proportion of each additional dollar of income that will go toward consumption expenditures.
susbtitute goods
price index
marginal propensity to consume (MPC)
individual choice
34. 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 shifts
demand curve
consumer income rise
simple money multiplier
35. The dollar value of goods and services sold to governments.
SRAS curve
government expenditures
expenditure approach
price index
36. 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.
fiscal policy
consumer taste and preferences
trade surplus
labor force
37. An increase in the price level
unemployment rate
rule of 70
tariff
inflation
38. Consumer income rise - demand will rise.
elastic demand
national economic accounts
neutral good
marginal revenue
39. 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.
SRAS curve
consumer taste and preferences
hidden unemployment
price ceiling
40. The study of scarcity and choice.
depression
cost-push inflation
consumer income rise
economics
41. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
opportunity cost
money multiplier
inflation
monopoly
42. 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.
changes in consumer expectations
simple money multiplier
elastic demand
purchasing power
43. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
consumption expenditures
national economic accounts
LRAS curv
44. 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.
number of composition of consumers
recession
law of supply
inelastic demand
45. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
monetary policy
unemployed
expansion
Gross National Product
46. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
scarcity
depreciation
inverse relationship
unemployment rate
47. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
trade deficit
disposable personal income
hyperinflation
48. A curve defining the relationship between real production and price level.
demand-pull inflation
inverse relationship
scarce
aggregate supply curve
49. Decisions by individuals about what to do and what not to do.
business cycles
individual choice
purchasing power
demand elasticity
50. 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
nominal GDP
consumer taste and preferences
perfectly elastic
expansionary monetary policy