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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. 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?
hidden unemployment
economics
demand elasticity
law of supply
2. A shift of the demand curve resulting from a change in consumer taste and preferences.
total revenue
consumer taste and preferences
business cycles
demand-pull inflation
3. The deliberate control of the money supply by the Federal government.
investment expenditures
trough
inelastic demand
monetary policy
4. A measure of the price level - or the average level of prices.
substitution effect
marginal revenue
price index
susbtitute goods
5. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
economic aggregates
expenditure approach
business cycle
complimentary goods
6. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
monopoly
susbtitute goods
expansionary fiscal policy
recession
7. The dollar value of all the goods and services sold to house holds.
aggregate demand curve
consumption expenditures
law of demand
A decrease in TR following an increase in price = elastic demand
8. The long-run pattern of growth and recession.
business cycle
labor force
quantity exchanged
monopoly
9. A relationship between two factors in which the factors move in the same direction.
trade surplus
changes in consumer expectations
Gross National Product
direct relationship
10. The amount of money available to consumers to purchase goods and services.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
change in quantity demanded
purchasing power
inflation
11. 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).
consumer income rise
market demand curve
law of supply
monetary policy
12. Consumer income rise - demand will rise.
government expenditures
command economy
diminishing marginal utility
neutral good
13. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
national income (NI)
money multiplier
peak
import quotas
14. 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
unit elastic
demand
expansionary monetary policy
15. The lowest point of a business cycle
Gross Domestic Product
number of composition of consumers
demand curve
trough
16. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
required reserve ratio (RRR)
cyclical unemployment
government expenditures
fiscal policy
17. (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.
market supply curve
number of composition of consumers
complimentary goods
price floor
18. When the percent of change in the quantity demanded equals the percent of change in price.
SRAS curve
consumer taste and preferences
market supply curve
unit elastic
19. Fluctuations in real GDP around the trend value; also called economic fluctuations.
demand curve
consumer taste and preferences
direct relationship
business cycles
20. An increase in the price level
demand-pull inflation
inflation
cyclical unemployment
money multiplier
21. Short-run aggregate supply curve
exchange rate
quantity exchanged
SRAS curve
opportunity cost
22. A Latin phrase meaning 'all things constant.'
cyclical unemployment
simple money multiplier
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market equilibrium
23. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
oligopoly
recession
economics
Phillips curve
24. 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
price ceiling
inelastic
scarcity
25. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
purchasing power
cyclical unemployment
rule of 70
Gross Domestic Product
26. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
microeconomics
market economy
Gross National Product
LRAS curv
27. 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.
price ceiling
expenditure approach
hidden unemployment
consumer good
28. Price control set when the market price is believed to be too high.
diminishing marginal utility
aggregate supply curve
price ceiling
purchasing power
29. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
elastic
demand elasticity
macroeconomics
expansionary fiscal policy
30. Real cost of an item is its opportunity cost.
expansion
required reserve ratio (RRR)
consumer good
opportunity cost
31. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
market equilibrium
LRAS curv
Labor
32. The highest point of a business cycle.
expenditure approach
marginal propensity to consume (MPC)
peak
national economic accounts
33. 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
government expenditures
unemployed
market supply curve
microeconomics
34. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
entrepreneurship
required reserve ratio (RRR)
demand-pull inflation
complimentary goods
35. 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.
market equilibrium
hyperinflation
inferior good
inelastic demand
36. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
monetary policy
import quotas
cyclical unemployment
37. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
marginal revenue
business cycle
hyperinflation
38. Rising prices - across the board.
inflation
consumption expenditures
economic aggregates
inelastic demand
39. The income earned by households and profits earned by firms after subtracting.
unemployment rate
national income (NI)
hyperinflation
stagflation
40. The study of scarcity and choice.
inelastic demand
trough
economics
depreciation
41. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
national economic accounts
susbtitute goods
changes in consumer expectations
neutral good
42. An increase or decrease in consumer income will cause a shift in the Demand Curve.
stagflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
consumer good
consumer taste and preferences
43. 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.
price index
required reserve ratio (RRR)
microeconomics
marginal propensity to consume (MPC)
44. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
interest
complimentary goods
Marginal Propensity to Save (MPS)
45. 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.
perfectly elastic
demand elasticity
land
structural unemployment
46. The price of a domestic currency in terms of a foreign currency.
simple money multiplier
changes in consumer expectations
exchange rate
national income (NI)
47. 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.
marginal revenue
aggregate supply curve
demand schedule
inflation
48. An industry structure in which there is only one seller for a product.
inelastic
monopoly
scarce
purchasing power
49. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
rule of 70
hidden unemployment
individual choice
50. The transition point between economic recession and recovery.
depression
monetary policy
trough
movement along a demand curve