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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 curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.
aggregate demand curve
hyperinflation
demand curve
movement along a demand curve
2. A Latin phrase meaning 'all things constant.'
labor force
real GDP
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
inelastic demand
3. 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.
perfectly elastic
oligopoly
unemployed
trade deficit
4. The dollar value of production by a country's citizens.
Gross National Product
elastic
marginal propensity to consume (MPC)
elastic demand
5. 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.
neutral good
A decrease in TR following an increase in price = elastic demand
demand schedule
inferior good
6. 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.
number of composition of consumers
inelastic demand
national income (NI)
normal good
7. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
structural unemployment
total revenue
Labor
8. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
normal good
stagflation
entrepreneurship
9. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
perfectly elastic
changes in consumer expectations
command economy
10. Short-run aggregate supply curve
inflation
total revenue
SRAS curve
tariff
11. 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.
SRAS curve
change in quantity demanded
expenditure approach
law of demand
12. 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.
business cycle
microeconomics
consumer surplus
consumer good
13. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
Labor
changes in consumer expectations
Gross Domestic Product
normal good
14. 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.
frictional unemployment
demand elasticity
inferior good
stagflation
15. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
elastic
recession
inelastic demand
law of demand
16. 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).
government expenditures
unemployed
cost-push inflation
total revenue
17. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
government expenditures
demand-pull inflation
substitution effect
elastic
18. The highest point of a business cycle.
aggregate supply curve
peak
economics
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
19. Restrictions on the quantity of a good that can be imported
expansionary fiscal policy
import quotas
macroeconomics
scarcity
20. 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?
unit elastic
investment expenditures
consumer surplus
demand elasticity
21. An industry structure in which there is only one seller for a product.
inverse relationship
monopoly
consumer taste and preferences
elastic demand
22. 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.
price index
business cycles
simple money multiplier
law of supply
23. 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
market economy
number of composition of consumers
rule of 70
recession
24. The addition to total revenue created by selling one additional unit of ouput.
inferior good
marginal revenue
oligopoly
investment expenditures
25. The cost of something in terms of what one must give up to get it.
substitution effect
monopoly
price index
opportunity cost
26. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
recession
marginal propensity to consume (MPC)
consumer taste and preferences
cyclical unemployment
27. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
market economy
SRAS curve
opportunity cost
28. Anything that shows the economy as a whole.
normal good
elastic
economic aggregates
command economy
29. 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.
substitution effect
inelastic
diminishing marginal utility
hyperinflation
30. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
purchasing power
trade deficit
cost-push inflation
entrepreneurship
31. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
Gross National Product
market demand curve
diminishing marginal utility
recession
32. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
total revenue
law of demand
money multiplier
individual choice
33. A special tax imposed on imported goods.
simple money multiplier
total revenue
tariff
microeconomics
34. Period in which a recession becomes prolonged and deep - involving high unemployment.
expansionary monetary policy
expansion
depression
Gross National Product
35. Price control set when the market price is believed to be too low.
law of demand
marginal propensity to consume (MPC)
price floor
demand schedule
36. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
movement along a demand curve
cyclical unemployment
demand curve
monopoly
37. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
marginal propensity to consume (MPC)
demand-pull inflation
interest
38. Decisions by individuals about what to do and what not to do.
economics
interest
national income (NI)
individual choice
39. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
interest
Phillips curve
command economy
40. (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.
demand elasticity
trough
law of supply
number of composition of consumers
41. 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.
hyperinflation
hidden unemployment
monetary policy
total revenue
42. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
hidden unemployment
economic aggregates
scarcity
expenditure approach
43. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
expansionary monetary policy
susbtitute goods
scarcity
44. Anything that can be used to produce something else
resource
peak
elastic
oligopoly
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.
scarce
inverse relationship
Gross Domestic Product
structural unemployment
46. A curve defining the relationship between real production and price level.
aggregate supply curve
elastic demand
microeconomics
marginal revenue
47. The lowest point of a business cycle
perfectly elastic
diminishing marginal utility
trough
trade surplus
48. The amount of money available to consumers to purchase goods and services.
expenditure approach
purchasing power
elastic demand
expansionary fiscal policy
49. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
trade surplus
trough
scarce
opportunity cost
50. 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
economics
Gross National Product
real GDP
opportunity cost