SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 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
macroeconomics
opportunity cost
nominal GDP
microeconomics
2. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
rule of 70
business cycles
change in quantity demanded
3. Short-run aggregate supply curve
inferior good
SRAS curve
microeconomics
cyclical unemployment
4. 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).
hidden unemployment
cost-push inflation
susbtitute goods
unemployed
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.
inflation
inverse relationship
consumer income rise
change in quantity demanded
6. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
total revenue
demand curve shifts
cyclical unemployment
required reserve ratio (RRR)
7. A Latin phrase meaning 'all things constant.'
market equilibrium
susbtitute goods
business cycles
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
8. Price control set when the market price is believed to be too low.
unit elastic
LRAS curv
law of supply
price floor
9. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarcity
stagflation
depression
demand schedule
10. The lowest point of a business cycle
A decrease in TR following an increase in price = elastic demand
trough
monetary policy
economics
11. 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?
Gross National Product
rule of 70
complimentary goods
demand elasticity
12. The payment that capital receives in the factor market.
command economy
A decrease in TR following an increase in price = elastic demand
interest
expansionary fiscal policy
13. 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.
national income (NI)
marginal revenue
demand-pull inflation
unemployment rate
14. Government officials make decisions about economy.
command economy
unemployed
economics
depreciation
15. 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).
rule of 70
nominal GDP
unemployment rate
price floor
16. 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.
oligopoly
expansionary fiscal policy
diminishing marginal utility
business cycles
17. The dollar value of goods and services sold to governments.
interest
government expenditures
disposable personal income
unemployed
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
diminishing marginal utility
economic aggregates
expansionary fiscal policy
19. Period in which a recession becomes prolonged and deep - involving high unemployment.
law of demand
changes in consumer expectations
microeconomics
depression
20. The willingness and ability of buyers to purchase a good or service.
demand
market demand curve
consumer surplus
unemployment rate
21. 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.
inferior good
number of composition of consumers
trade deficit
demand schedule
22. Goods that go together - if price ? the demand for both that good and complimentary good ?.
depression
Marginal Propensity to Save (MPS)
complimentary goods
simple money multiplier
23. Anything that can be used to produce something else
Phillips curve
resource
price floor
opportunity cost
24. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
monetary policy
recession
depression
consumer income rise
25. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
simple money multiplier
required reserve ratio (RRR)
Gross Domestic Product
money multiplier
26. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
LRAS curv
Labor
neutral good
fiscal policy
27. The amount of money available to consumers to purchase goods and services.
trade deficit
purchasing power
recession
cyclical unemployment
28. A measure of the price level - or the average level of prices.
demand curve
price index
tariff
normal good
29. Decisions by individuals about what to do and what not to do.
trade deficit
price floor
inflation
individual choice
30. The dollar value of production within a nation's border.
trough
Gross Domestic Product
susbtitute goods
price index
31. Fluctuations in real GDP around the trend value; also called economic fluctuations.
aggregate demand curve
inelastic demand
inferior good
business cycles
32. Real cost of an item is its opportunity cost.
opportunity cost
inflation
scarcity
total revenue
33. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
perfectly elastic
diminishing marginal utility
SRAS curve
inferior good
34. Significantly responsive to a change in price.
elastic
law of supply
LRAS curv
market supply curve
35. 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.
quantity exchanged
microeconomics
inelastic demand
demand-pull inflation
36. A special tax imposed on imported goods.
trade surplus
trade deficit
tariff
peak
37. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
A decrease in TR following an increase in price = elastic demand
inflation
trade surplus
nominal GDP
38. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
Labor
LRAS curv
aggregate supply curve
market demand curve
39. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
Marginal Propensity to Save (MPS)
marginal propensity to consume (MPC)
direct relationship
40. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
cyclical unemployment
real GDP
aggregate demand curve
consumer surplus
41. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
A decrease in TR following an increase in price = elastic demand
consumer taste and preferences
entrepreneurship
economics
42. 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
trade surplus
recession
nominal GDP
43. Expenditure by businesses on plant and equipment and the change in business invention.
microeconomics
investment expenditures
stagflation
cyclical unemployment
44. An industry structure in which there is only one seller for a product.
monopoly
disposable personal income
complimentary goods
elastic
45. Anything that shows the economy as a whole.
frictional unemployment
simple money multiplier
economic aggregates
law of demand
46. The transition point between economic recession and recovery.
trough
microeconomics
cyclical unemployment
land
47. Not significantly responsive to changes in price.
unit elastic
demand schedule
inelastic
change in quantity demanded
48. The income of households after taxes have been paid
movement along a demand curve
disposable personal income
command economy
labor force
49. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
perfectly elastic
purchasing power
land
simple money multiplier
50. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
consumption expenditures
inflation
demand curve