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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. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
purchasing power
peak
resource
national economic accounts
2. 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.
real GDP
entrepreneurship
labor force
oligopoly
3. An increase in the price level
change in quantity demanded
aggregate supply curve
demand schedule
inflation
4. Real cost of an item is its opportunity cost.
marginal revenue
opportunity cost
inverse relationship
aggregate demand curve
5. 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
inverse relationship
unit elastic
depression
6. The proportion of each additional dollar of income that will go toward consumption expenditures.
peak
marginal propensity to consume (MPC)
entrepreneurship
consumer taste and preferences
7. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
cost-push inflation
LRAS curv
business cycle
8. A bad depressingly prolonged recession in economic activity.
unemployment rate
depression
Labor
opportunity cost
9. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
susbtitute goods
movement along a demand curve
monopoly
market supply curve
10. 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).
complimentary goods
cost-push inflation
inflation
trough
11. 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.
demand schedule
change in quantity demanded
real GDP
consumption expenditures
12. 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.
disposable personal income
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer taste and preferences
perfectly elastic
13. The willingness and ability of buyers to purchase a good or service.
Gross National Product
expansionary monetary policy
economics
demand
14. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
expansionary monetary policy
price floor
demand curve
demand elasticity
15. An industry structure in which there is only one seller for a product.
monopoly
real GDP
Phillips curve
stagflation
16. A relationship between two factors in which the factors move in the same direction.
direct relationship
market economy
Gross National Product
scarce
17. 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
quantity exchanged
inverse relationship
movement along a demand curve
expansionary monetary policy
18. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
substitution effect
consumer income rise
elastic
expansion
19. Period in which a recession becomes prolonged and deep - involving high unemployment.
real GDP
depression
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
neutral good
20. The dollar value of all the goods and services sold to house holds.
trough
consumption expenditures
aggregate supply curve
consumer taste and preferences
21. 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
inelastic demand
trade deficit
unit elastic
unemployed
22. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
nominal GDP
land
law of supply
23. 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.
structural unemployment
law of demand
Labor
demand-pull inflation
24. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
opportunity cost
consumer income rise
inverse relationship
demand curve shifts
25. The income earned by households and profits earned by firms after subtracting.
national income (NI)
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
depression
quantity exchanged
26. The dollar value of production within a nation's border.
aggregate demand curve
Gross Domestic Product
disposable personal income
changes in consumer expectations
27. 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).
perfectly elastic
unemployment rate
depression
law of supply
28. 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
scarce
Phillips curve
real GDP
price floor
29. 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
substitution effect
national economic accounts
rule of 70
inflation
30. The lowest point of a business cycle
disposable personal income
susbtitute goods
trough
unit elastic
31. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
Phillips curve
money multiplier
national income (NI)
32. 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
rule of 70
depreciation
market demand curve
33. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
Phillips curve
market demand curve
aggregate demand curve
normal good
34. Short-run aggregate supply curve
expansionary fiscal policy
economics
movement along a demand curve
SRAS curve
35. Expenditure by businesses on plant and equipment and the change in business invention.
demand elasticity
neutral good
rule of 70
investment expenditures
36. A shift of the demand curve resulting from a change in consumer taste and preferences.
perfectly elastic
market economy
exchange rate
consumer taste and preferences
37. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
trough
tariff
neutral good
scarcity
38. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
inverse relationship
expansion
fiscal policy
39. 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.
demand curve shifts
microeconomics
complimentary goods
hyperinflation
40. The payment that capital receives in the factor market.
interest
purchasing power
opportunity cost
microeconomics
41. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
structural unemployment
business cycles
susbtitute goods
demand curve shifts
42. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
marginal revenue
A decrease in TR following an increase in price = elastic demand
Gross Domestic Product
normal good
43. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
inelastic demand
market economy
disposable personal income
diminishing marginal utility
44. Price control set when the market price is believed to be too high.
neutral good
law of supply
investment expenditures
price ceiling
45. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
inelastic
macroeconomics
complimentary goods
perfectly elastic
46. Consumer income rise - demand will rise.
price floor
law of demand
number of composition of consumers
neutral good
47. The dollar value of goods and services sold to governments.
market economy
normal good
fiscal policy
government expenditures
48. The amount of money available to consumers to purchase goods and services.
disposable personal income
purchasing power
demand schedule
entrepreneurship
49. A Latin phrase meaning 'all things constant.'
monetary policy
exchange rate
demand-pull inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
50. The addition to total revenue created by selling one additional unit of ouput.
depression
market economy
scarce
marginal revenue