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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 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
quantity exchanged
trade surplus
economics
2. The amount of money available to consumers to purchase goods and services.
peak
law of demand
neutral good
purchasing power
3. When the percent of change in the quantity demanded equals the percent of change in price.
marginal propensity to consume (MPC)
complimentary goods
market supply curve
unit elastic
4. An industry structure in which there is only one seller for a product.
demand schedule
market supply curve
microeconomics
monopoly
5. Decisions by individuals about what to do and what not to do.
cyclical unemployment
change in quantity demanded
individual choice
inflation
6. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
opportunity cost
purchasing power
business cycles
required reserve ratio (RRR)
7. 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.
hyperinflation
market demand curve
tariff
investment expenditures
8. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
fiscal policy
entrepreneurship
economics
national income (NI)
9. 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.
market supply curve
price floor
national economic accounts
law of supply
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).
cost-push inflation
quantity exchanged
Gross Domestic Product
peak
11. The sum of all the quantities of a good supplies by all producers at each price.
demand-pull inflation
demand curve shifts
labor force
market supply curve
12. 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.
cost-push inflation
simple money multiplier
investment expenditures
Marginal Propensity to Save (MPS)
13. A shift of the demand curve resulting from a change in consumer taste and preferences.
inelastic
market economy
consumer taste and preferences
depression
14. Significantly responsive to a change in price.
market equilibrium
elastic
opportunity cost
demand
15. (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.
consumer taste and preferences
interest
number of composition of consumers
fiscal policy
16. An increase in the price level
market equilibrium
neutral good
inflation
trough
17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
inelastic
fiscal policy
business cycles
movement along a demand curve
18. Real cost of an item is its opportunity cost.
individual choice
trough
national economic accounts
opportunity cost
19. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
LRAS curv
diminishing marginal utility
microeconomics
movement along a demand curve
20. A curve defining the relationship between real production and price level.
opportunity cost
inelastic demand
aggregate supply curve
disposable personal income
21. Price control set when the market price is believed to be too low.
individual choice
quantity exchanged
diminishing marginal utility
price floor
22. 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
tariff
movement along a demand curve
change in quantity demanded
23. 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).
command economy
change in quantity demanded
direct relationship
expansionary fiscal policy
24. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
market demand curve
movement along a demand curve
changes in consumer expectations
expansionary monetary policy
25. 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
individual choice
consumer income rise
change in quantity demanded
26. The dollar value of production within a nation's border.
unemployed
Gross Domestic Product
consumer surplus
trough
27. A relationship between two factors in which the factors move in the same direction.
direct relationship
hidden unemployment
unit elastic
market equilibrium
28. 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
exchange rate
national income (NI)
movement along a demand curve
29. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
unemployment rate
depreciation
monopoly
30. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
recession
substitution effect
consumer income rise
entrepreneurship
31. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
Phillips curve
stagflation
trade surplus
scarce
32. Anything that can be used to produce something else
SRAS curve
resource
price ceiling
opportunity cost
33. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
consumer good
economics
fiscal policy
unemployed
34. The dollar value of all the goods and services sold to house holds.
national economic accounts
consumption expenditures
macroeconomics
depression
35. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarcity
economic aggregates
perfectly elastic
change in quantity demanded
36. A special tax imposed on imported goods.
exchange rate
tariff
recession
Marginal Propensity to Save (MPS)
37. 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.
inflation
fiscal policy
national economic accounts
inferior good
38. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
structural unemployment
cyclical unemployment
movement along a demand curve
Marginal Propensity to Save (MPS)
39. The effort of workers.
economic aggregates
resource
labor force
Labor
40. The addition to total revenue created by selling one additional unit of ouput.
inelastic demand
interest
marginal revenue
cyclical unemployment
41. The lowest point of a business cycle
inferior good
trough
market supply curve
demand curve
42. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
unemployed
complimentary goods
marginal revenue
43. A bad depressingly prolonged recession in economic activity.
marginal propensity to consume (MPC)
depression
Gross Domestic Product
unit elastic
44. Rising prices - across the board.
economics
inflation
fiscal policy
law of demand
45. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
market demand curve
law of demand
national economic accounts
inferior good
46. The price of a domestic currency in terms of a foreign currency.
exchange rate
inelastic demand
demand elasticity
expansion
47. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
recession
Marginal Propensity to Save (MPS)
purchasing power
48. The highest point of a business cycle.
command economy
peak
demand curve
Gross Domestic Product
49. The income earned by households and profits earned by firms after subtracting.
national income (NI)
investment expenditures
tariff
consumption expenditures
50. A measure of the price level - or the average level of prices.
price index
real GDP
purchasing power
Ceteris Paribus (sayr-iht-us pahr-ih-bos)