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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. 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
resource
required reserve ratio (RRR)
rule of 70
national economic accounts
2. 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
unit elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarce
nominal GDP
3. Significantly responsive to a change in price.
elastic
money multiplier
frictional unemployment
total revenue
4. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
opportunity cost
nominal GDP
inferior good
inverse relationship
5. 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.
elastic demand
national economic accounts
susbtitute goods
unit elastic
6. The sum of all the quantities of a good supplies by all producers at each price.
trough
consumption expenditures
market equilibrium
market supply curve
7. 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
trade deficit
unit elastic
unemployed
economic aggregates
8. 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.
tariff
Phillips curve
law of demand
hyperinflation
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
elastic demand
changes in consumer expectations
market demand curve
real GDP
10. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
marginal propensity to consume (MPC)
business cycles
consumer income rise
11. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
complimentary goods
SRAS curve
perfectly elastic
recession
12. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
expansionary fiscal policy
consumer surplus
individual choice
consumption expenditures
13. The willingness and ability of buyers to purchase a good or service.
demand
business cycle
demand-pull inflation
resource
14. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
direct relationship
consumer surplus
changes in consumer expectations
law of demand
15. 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.
Gross National Product
marginal revenue
total revenue
aggregate demand curve
16. A relationship between two factors in which the factors move in the same direction.
demand
SRAS curve
direct relationship
Marginal Propensity to Save (MPS)
17. 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.
substitution effect
law of supply
exchange rate
perfectly elastic
18. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trough
unit elastic
trade surplus
inflation
19. The amount of a good actually sold.
demand curve
quantity exchanged
recession
oligopoly
20. Decisions by individuals about what to do and what not to do.
change in quantity demanded
individual choice
unit elastic
depression
21. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.
microeconomics
marginal propensity to consume (MPC)
consumer income rise
trade deficit
22. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
expansionary monetary policy
inflation
market supply curve
23. A shift of the demand curve resulting from a change in consumer taste and preferences.
microeconomics
consumer taste and preferences
interest
demand
24. Government officials make decisions about economy.
command economy
complimentary goods
microeconomics
unit elastic
25. A bad depressingly prolonged recession in economic activity.
national income (NI)
depression
macroeconomics
market supply curve
26. 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
total revenue
labor force
substitution effect
27. A curve defining the relationship between real production and price level.
business cycles
aggregate supply curve
demand schedule
Marginal Propensity to Save (MPS)
28. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
recession
number of composition of consumers
susbtitute goods
29. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
investment expenditures
consumer good
consumption expenditures
30. The addition to total revenue created by selling one additional unit of ouput.
depression
purchasing power
command economy
marginal revenue
31. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
frictional unemployment
normal good
hyperinflation
aggregate supply curve
32. Anything that shows the economy as a whole.
disposable personal income
diminishing marginal utility
economic aggregates
microeconomics
33. Expenditure by businesses on plant and equipment and the change in business invention.
labor force
investment expenditures
price index
land
34. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
inelastic
scarce
Phillips curve
cyclical unemployment
35. 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.
diminishing marginal utility
change in quantity demanded
inelastic demand
labor force
36. The dollar value of all the goods and services sold to house holds.
import quotas
consumption expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
A decrease in TR following an increase in price = elastic demand
37. 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?
trade surplus
marginal propensity to consume (MPC)
trade deficit
demand elasticity
38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
Gross National Product
inferior good
economics
entrepreneurship
39. 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
land
expansionary monetary policy
real GDP
40. The amount of money available to consumers to purchase goods and services.
movement along a demand curve
purchasing power
elastic
price floor
41. An increase in the price level
resource
change in quantity demanded
recession
inflation
42. The study of scarcity and choice.
trade surplus
economics
inelastic demand
price ceiling
43. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
economics
substitution effect
demand
macroeconomics
44. The payment that capital receives in the factor market.
demand curve shifts
quantity exchanged
interest
expenditure approach
45. A measure of the price level - or the average level of prices.
Marginal Propensity to Save (MPS)
law of demand
price index
command economy
46. 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.
purchasing power
command economy
inelastic demand
government expenditures
47. Real cost of an item is its opportunity cost.
peak
opportunity cost
neutral good
monetary policy
48. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
law of demand
national economic accounts
entrepreneurship
price floor
49. 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).
disposable personal income
number of composition of consumers
unemployment rate
expansionary fiscal policy
50. The income of households after taxes have been paid
depression
expansionary monetary policy
individual choice
disposable personal income