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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. The payment that capital receives in the factor market.
interest
demand elasticity
business cycles
cyclical unemployment
2. The lowest point of a business cycle
A decrease in TR following an increase in price = elastic demand
unemployment rate
trough
demand curve
3. The amount of a good actually sold.
cyclical unemployment
quantity exchanged
scarce
marginal propensity to consume (MPC)
4. 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.
economics
tariff
elastic demand
opportunity cost
5. The long-run pattern of growth and recession.
elastic
business cycle
entrepreneurship
unemployment rate
6. Anything that can be used to produce something else
price index
depreciation
exchange rate
resource
7. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
market equilibrium
entrepreneurship
demand-pull inflation
monetary policy
8. 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.
elastic demand
change in quantity demanded
monopoly
demand curve shifts
9. The price of a domestic currency in terms of a foreign currency.
exchange rate
inflation
opportunity cost
rule of 70
10. Restrictions on the quantity of a good that can be imported
substitution effect
expenditure approach
import quotas
individual choice
11. The transition point between economic recession and recovery.
trough
consumer good
direct relationship
depreciation
12. 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.
change in quantity demanded
depression
marginal revenue
Gross Domestic Product
13. 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).
unemployment rate
trade deficit
substitution effect
market demand curve
14. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
inflation
market demand curve
fiscal policy
15. A special tax imposed on imported goods.
tariff
depreciation
demand curve
elastic demand
16. The dollar value of production by a country's citizens.
Gross National Product
Phillips curve
expansionary fiscal policy
monopoly
17. The proportion of each additional dollar of income that will go toward consumption expenditures.
market supply curve
economics
marginal propensity to consume (MPC)
monopoly
18. 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.
monopoly
Gross National Product
inferior good
total revenue
19. Period in which a recession becomes prolonged and deep - involving high unemployment.
macroeconomics
depression
number of composition of consumers
business cycle
20. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.
marginal revenue
economic aggregates
frictional unemployment
unemployed
21. The addition to total revenue created by selling one additional unit of ouput.
neutral good
susbtitute goods
marginal revenue
demand-pull inflation
22. 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
elastic
fiscal policy
aggregate supply curve
23. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
demand-pull inflation
demand curve shifts
individual choice
cyclical unemployment
24. 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.
national economic accounts
elastic
aggregate demand curve
entrepreneurship
25. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
unit elastic
fiscal policy
individual choice
consumer income rise
26. Long- run aggregate supply curve
complimentary goods
resource
LRAS curv
Labor
27. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
purchasing power
diminishing marginal utility
rule of 70
expansion
28. The amount of money available to consumers to purchase goods and services.
money multiplier
purchasing power
Gross Domestic Product
consumption expenditures
29. A measure of the price level - or the average level of prices.
demand-pull inflation
law of demand
law of demand
price index
30. 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
investment expenditures
consumer surplus
Gross National Product
rule of 70
31. (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.
simple money multiplier
entrepreneurship
number of composition of consumers
depression
32. Goods that go together - if price ? the demand for both that good and complimentary good ?.
price floor
simple money multiplier
Gross National Product
complimentary goods
33. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
hidden unemployment
expenditure approach
consumer income rise
fiscal policy
34. Significantly responsive to a change in price.
consumer income rise
national economic accounts
elastic
monetary policy
35. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
national economic accounts
Marginal Propensity to Save (MPS)
frictional unemployment
A decrease in TR following an increase in price = elastic demand
36. The deliberate control of the money supply by the Federal government.
demand
monetary policy
business cycles
resource
37. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
demand-pull inflation
national economic accounts
demand schedule
market economy
38. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
depression
command economy
changes in consumer expectations
39. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
peak
total revenue
simple money multiplier
resource
40. 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.
law of supply
resource
import quotas
business cycles
41. Price control set when the market price is believed to be too low.
price floor
investment expenditures
demand curve shifts
demand-pull inflation
42. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
monetary policy
recession
required reserve ratio (RRR)
national economic accounts
43. The dollar value of all the goods and services sold to house holds.
hidden unemployment
demand
simple money multiplier
consumption expenditures
44. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
consumer income rise
demand curve
monetary policy
45. Government officials make decisions about economy.
market supply curve
command economy
opportunity cost
consumer surplus
46. 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-pull inflation
purchasing power
trade deficit
depression
47. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
simple money multiplier
substitution effect
LRAS curv
demand schedule
48. 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
A decrease in TR following an increase in price = elastic demand
entrepreneurship
peak
49. 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.
simple money multiplier
marginal revenue
consumer taste and preferences
complimentary goods
50. The income of households after taxes have been paid
demand
required reserve ratio (RRR)
disposable personal income
price ceiling