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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.
demand elasticity
hyperinflation
microeconomics
national economic accounts
2. 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.
hidden unemployment
trade deficit
total revenue
price index
3. The dollar value of goods and services sold to governments.
peak
national income (NI)
government expenditures
recession
4. 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).
economic aggregates
unemployment rate
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of supply
5. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
consumer good
nominal GDP
depression
6. 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.
business cycle
economic aggregates
change in quantity demanded
microeconomics
7. 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.
tariff
expansionary monetary policy
microeconomics
substitution effect
8. 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.
stagflation
expansionary monetary policy
entrepreneurship
A decrease in TR following an increase in price = elastic demand
9. 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.
demand elasticity
market demand curve
demand-pull inflation
microeconomics
10. 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
nominal GDP
inflation
11. The addition to total revenue created by selling one additional unit of ouput.
A decrease in TR following an increase in price = elastic demand
aggregate demand curve
marginal revenue
demand schedule
12. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
Labor
command economy
depression
total revenue
13. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
quantity exchanged
susbtitute goods
scarce
consumer surplus
14. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
hyperinflation
cyclical unemployment
hidden unemployment
trade surplus
15. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
Marginal Propensity to Save (MPS)
rule of 70
consumer taste and preferences
16. 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).
law of demand
investment expenditures
opportunity cost
expansionary fiscal policy
17. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
law of demand
expansion
cost-push inflation
cyclical unemployment
18. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
monetary policy
market economy
aggregate supply curve
trough
19. The income of households after taxes have been paid
price floor
complimentary goods
interest
disposable personal income
20. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
cyclical unemployment
susbtitute goods
entrepreneurship
21. 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
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
command economy
law of demand
22. The dollar value of production within a nation's border.
peak
money multiplier
Gross Domestic Product
market supply curve
23. The payment that capital receives in the factor market.
inflation
national income (NI)
interest
Phillips curve
24. The income earned by households and profits earned by firms after subtracting.
SRAS curve
cyclical unemployment
command economy
national income (NI)
25. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
peak
trade surplus
entrepreneurship
unemployed
26. The amount of a good actually sold.
quantity exchanged
changes in consumer expectations
government expenditures
demand curve shifts
27. The dollar value of all the goods and services sold to house holds.
purchasing power
trough
number of composition of consumers
consumption expenditures
28. 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
direct relationship
opportunity cost
expansionary monetary policy
aggregate supply curve
29. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
marginal propensity to consume (MPC)
inelastic
scarce
aggregate demand curve
30. When the percent of change in the quantity demanded equals the percent of change in price.
monopoly
quantity exchanged
unit elastic
marginal revenue
31. 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
real GDP
individual choice
trough
national income (NI)
32. Price control set when the market price is believed to be too high.
quantity exchanged
price index
price ceiling
Gross Domestic Product
33. Short-run aggregate supply curve
SRAS curve
depression
normal good
required reserve ratio (RRR)
34. Anything that can be used to produce something else
unit elastic
money multiplier
normal good
resource
35. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer taste and preferences
command economy
Gross National Product
consumer good
36. The willingness and ability of buyers to purchase a good or service.
depression
demand
movement along a demand curve
quantity exchanged
37. Period in which a recession becomes prolonged and deep - involving high unemployment.
expansion
marginal revenue
demand
depression
38. Government officials make decisions about economy.
investment expenditures
quantity exchanged
market demand curve
command economy
39. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
depreciation
complimentary goods
inflation
changes in consumer expectations
40. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
aggregate demand curve
government expenditures
peak
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.
fiscal policy
frictional unemployment
complimentary goods
number of composition of consumers
42. Significantly responsive to a change in price.
Labor
unemployment rate
market supply curve
elastic
43. The study of scarcity and choice.
exchange rate
real GDP
consumption expenditures
economics
44. A relationship between two factors in which the factors move in the same direction.
direct relationship
microeconomics
disposable personal income
neutral good
45. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
demand schedule
trade deficit
demand curve shifts
market demand curve
46. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
nominal GDP
rule of 70
inverse relationship
depreciation
47. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
structural unemployment
price ceiling
recession
oligopoly
48. 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.
labor force
hyperinflation
market supply curve
aggregate demand curve
49. A bad depressingly prolonged recession in economic activity.
government expenditures
depression
disposable personal income
Labor
50. 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.
demand curve shifts
SRAS curve
inelastic demand
national economic accounts