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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 special tax imposed on imported goods.
Marginal Propensity to Save (MPS)
land
tariff
depression
2. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
Phillips curve
simple money multiplier
scarcity
demand
3. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
cost-push inflation
purchasing power
number of composition of consumers
diminishing marginal utility
4. A relationship between two factors in which the factors move in the same direction.
direct relationship
expansionary fiscal policy
macroeconomics
demand elasticity
5. The transition point between economic recession and recovery.
rule of 70
depression
elastic demand
trough
6. 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.
national economic accounts
law of supply
complimentary goods
rule of 70
7. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
law of demand
demand schedule
recession
Marginal Propensity to Save (MPS)
8. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
demand-pull inflation
expansionary fiscal policy
land
market demand curve
9. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
fiscal policy
law of demand
Phillips curve
labor force
10. 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.
changes in consumer expectations
inelastic
hyperinflation
trade deficit
11. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
perfectly elastic
disposable personal income
substitution effect
expenditure approach
12. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
consumer taste and preferences
A decrease in TR following an increase in price = elastic demand
marginal propensity to consume (MPC)
market equilibrium
13. 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.
expenditure approach
monetary policy
changes in consumer expectations
elastic demand
14. An increase in the price level
expansionary fiscal policy
normal good
inflation
national economic accounts
15. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
expenditure approach
quantity exchanged
elastic
16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
consumption expenditures
susbtitute goods
individual choice
total revenue
17. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
substitution effect
interest
frictional unemployment
18. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
opportunity cost
inverse relationship
Marginal Propensity to Save (MPS)
trade surplus
19. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
recession
exchange rate
market economy
trade deficit
20. Not significantly responsive to changes in price.
expenditure approach
inelastic
price index
number of composition of consumers
21. Government officials make decisions about economy.
business cycle
consumer taste and preferences
command economy
unemployment rate
22. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
tariff
expansion
demand
Phillips curve
23. Expenditure by businesses on plant and equipment and the change in business invention.
business cycle
demand
investment expenditures
purchasing power
24. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
aggregate demand curve
trade deficit
substitution effect
frictional unemployment
25. An increase or decrease in consumer income will cause a shift in the Demand Curve.
government expenditures
LRAS curv
complimentary goods
consumer good
26. The proportion of each additional dollar of income that will go toward consumption expenditures.
Labor
marginal propensity to consume (MPC)
market demand curve
nominal GDP
27. The income earned by households and profits earned by firms after subtracting.
macroeconomics
national income (NI)
consumer surplus
demand curve shifts
28. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
consumer taste and preferences
exchange rate
frictional unemployment
entrepreneurship
29. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cost-push inflation
cyclical unemployment
elastic demand
diminishing marginal utility
30. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
required reserve ratio (RRR)
substitution effect
Gross Domestic Product
31. 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.
quantity exchanged
cyclical unemployment
microeconomics
inelastic demand
32. A measure of the price level - or the average level of prices.
unit elastic
Marginal Propensity to Save (MPS)
real GDP
price index
33. Fluctuations in real GDP around the trend value; also called economic fluctuations.
recession
simple money multiplier
business cycles
opportunity cost
34. 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.
demand curve shifts
hidden unemployment
direct relationship
oligopoly
35. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.
economics
marginal propensity to consume (MPC)
demand curve shifts
change in quantity demanded
36. The dollar value of goods and services sold to governments.
monopoly
Marginal Propensity to Save (MPS)
economic aggregates
government expenditures
37. Price control set when the market price is believed to be too high.
stagflation
recession
depression
price ceiling
38. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
aggregate supply curve
consumption expenditures
consumer taste and preferences
39. 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.
rule of 70
individual choice
microeconomics
inferior good
40. The cost of something in terms of what one must give up to get it.
expansionary fiscal policy
neutral good
opportunity cost
rule of 70
41. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
quantity exchanged
macroeconomics
marginal revenue
fiscal policy
42. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
trough
labor force
susbtitute goods
A decrease in TR following an increase in price = elastic demand
43. The long-run pattern of growth and recession.
business cycle
Gross Domestic Product
expansionary monetary policy
demand
44. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
trough
interest
complimentary goods
Phillips curve
45. The deliberate control of the money supply by the Federal government.
market equilibrium
monetary policy
structural unemployment
hyperinflation
46. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
required reserve ratio (RRR)
Gross National Product
macroeconomics
price index
47. A bad depressingly prolonged recession in economic activity.
required reserve ratio (RRR)
quantity exchanged
individual choice
depression
48. 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).
unemployment rate
unemployed
cyclical unemployment
investment expenditures
49. Significantly responsive to a change in price.
tariff
demand schedule
elastic
investment expenditures
50. The amount of a good actually sold.
quantity exchanged
national income (NI)
business cycles
unemployed