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Test your basic knowledge |
AP Macroeconomics
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Subjects
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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. 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.
nominal GDP
simple money multiplier
demand elasticity
Gross Domestic Product
2. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
rule of 70
quantity exchanged
SRAS curve
required reserve ratio (RRR)
3. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
economics
command economy
demand elasticity
recession
4. 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
import quotas
consumer income rise
real GDP
economic aggregates
5. 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
peak
demand
economic aggregates
6. The amount of a good actually sold.
quantity exchanged
microeconomics
scarcity
market demand curve
7. 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).
expansionary fiscal policy
inelastic demand
law of demand
structural unemployment
8. 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
exchange rate
rule of 70
expansion
elastic demand
9. Price control set when the market price is believed to be too low.
expansionary fiscal policy
SRAS curve
scarcity
price floor
10. A shift of the demand curve resulting from a change in consumer taste and preferences.
fiscal policy
consumer taste and preferences
change in quantity demanded
trade surplus
11. The proportion of each additional dollar of income that is saved.
marginal revenue
Marginal Propensity to Save (MPS)
Phillips curve
price index
12. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
fiscal policy
macroeconomics
recession
13. 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.
recession
consumer taste and preferences
unemployed
hyperinflation
14. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
fiscal policy
consumer surplus
quantity exchanged
A decrease in TR following an increase in price = elastic demand
15. Restrictions on the quantity of a good that can be imported
government expenditures
complimentary goods
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
import quotas
16. 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.
inferior good
command economy
Marginal Propensity to Save (MPS)
unemployment rate
17. The dollar value of production by a country's citizens.
stagflation
government expenditures
Gross National Product
fiscal policy
18. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
inflation
stagflation
consumption expenditures
19. Long- run aggregate supply curve
LRAS curv
consumption expenditures
exchange rate
expansionary fiscal policy
20. Period in which a recession becomes prolonged and deep - involving high unemployment.
hyperinflation
inflation
diminishing marginal utility
depression
21. 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.
market economy
opportunity cost
unemployment rate
hidden unemployment
22. A bad depressingly prolonged recession in economic activity.
depression
required reserve ratio (RRR)
changes in consumer expectations
unemployment rate
23. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
law of demand
A decrease in TR following an increase in price = elastic demand
land
cyclical unemployment
24. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
change in quantity demanded
expenditure approach
inverse relationship
25. A measure of the price level - or the average level of prices.
price index
expansion
fiscal policy
inflation
26. A relationship between two factors in which the factors move in the same direction.
unemployment rate
number of composition of consumers
inferior good
direct relationship
27. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
unemployed
business cycle
diminishing marginal utility
28. The dollar value of production within a nation's border.
consumer surplus
quantity exchanged
scarce
Gross Domestic Product
29. The payment that capital receives in the factor market.
interest
national economic accounts
perfectly elastic
disposable personal income
30. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
tariff
resource
demand
31. Anything that can be used to produce something else
demand elasticity
resource
rule of 70
demand-pull inflation
32. An industry structure in which there is only one seller for a product.
marginal revenue
consumer good
Labor
monopoly
33. A special tax imposed on imported goods.
movement along a demand curve
tariff
resource
trade deficit
34. The dollar value of all the goods and services sold to house holds.
scarcity
expansionary monetary policy
consumption expenditures
monopoly
35. 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).
consumer taste and preferences
expansion
opportunity cost
unemployment rate
36. 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.
aggregate supply curve
elastic
demand-pull inflation
marginal revenue
37. The income earned by households and profits earned by firms after subtracting.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
national income (NI)
Phillips curve
unemployed
38. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
economics
scarcity
perfectly elastic
complimentary goods
39. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
LRAS curv
unemployed
trade deficit
Phillips curve
40. The cost of something in terms of what one must give up to get it.
expansion
microeconomics
opportunity cost
market economy
41. (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.
number of composition of consumers
inverse relationship
consumption expenditures
disposable personal income
42. Not significantly responsive to changes in price.
inelastic
perfectly elastic
nominal GDP
A decrease in TR following an increase in price = elastic demand
43. Decisions by individuals about what to do and what not to do.
scarcity
demand elasticity
aggregate demand curve
individual choice
44. 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
scarce
expansionary monetary policy
national economic accounts
macroeconomics
45. 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
tariff
business cycles
inferior good
46. 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
unemployed
marginal revenue
inverse relationship
structural unemployment
47. The amount of money available to consumers to purchase goods and services.
consumption expenditures
purchasing power
cyclical unemployment
simple money multiplier
48. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
demand elasticity
expansion
real GDP
trade surplus
49. 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?
trough
expansion
demand elasticity
opportunity cost
50. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
neutral good
complimentary goods
expenditure approach
marginal revenue
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