SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 income earned by households and profits earned by firms after subtracting.
rule of 70
susbtitute goods
national income (NI)
purchasing power
2. Price control set when the market price is believed to be too low.
price index
price floor
quantity exchanged
exchange rate
3. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
government expenditures
susbtitute goods
hyperinflation
neutral good
4. 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.
stagflation
consumer income rise
expenditure approach
labor force
5. The lowest point of a business cycle
trough
perfectly elastic
demand schedule
price floor
6. Fluctuations in real GDP around the trend value; also called economic fluctuations.
depression
purchasing power
business cycles
economics
7. 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
economics
market supply curve
exchange rate
rule of 70
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.
market equilibrium
consumer taste and preferences
demand curve shifts
labor force
9. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
inelastic
tariff
stagflation
rule of 70
10. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
business cycle
command economy
trade deficit
unemployed
11. The income of households after taxes have been paid
disposable personal income
expenditure approach
hidden unemployment
SRAS curve
12. 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).
inflation
unemployment rate
marginal propensity to consume (MPC)
unemployed
13. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
law of supply
entrepreneurship
14. The price of a domestic currency in terms of a foreign currency.
aggregate demand curve
entrepreneurship
expansionary fiscal policy
exchange rate
15. 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.
depreciation
aggregate supply curve
individual choice
change in quantity demanded
16. Period in which a recession becomes prolonged and deep - involving high unemployment.
labor force
command economy
unemployment rate
depression
17. Long- run aggregate supply curve
changes in consumer expectations
LRAS curv
consumption expenditures
hyperinflation
18. 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
movement along a demand curve
demand curve shifts
consumer taste and preferences
19. The dollar value of production within a nation's border.
consumption expenditures
demand schedule
Gross Domestic Product
law of demand
20. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
perfectly elastic
exchange rate
market equilibrium
SRAS curve
21. The amount of a good actually sold.
disposable personal income
interest
expenditure approach
quantity exchanged
22. 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
interest
marginal propensity to consume (MPC)
real GDP
consumer income rise
23. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
change in quantity demanded
cyclical unemployment
unemployment rate
Labor
24. The payment that capital receives in the factor market.
quantity exchanged
Marginal Propensity to Save (MPS)
interest
total revenue
25. 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).
Marginal Propensity to Save (MPS)
expansionary fiscal policy
neutral good
perfectly elastic
26. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
national economic accounts
perfectly elastic
economics
27. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
peak
economics
Phillips curve
demand curve shifts
28. An increase or decrease in consumer income will cause a shift in the Demand Curve.
opportunity cost
consumer good
law of supply
SRAS curve
29. Real cost of an item is its opportunity cost.
macroeconomics
opportunity cost
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
national economic accounts
30. The cost of something in terms of what one must give up to get it.
A decrease in TR following an increase in price = elastic demand
opportunity cost
inelastic demand
resource
31. The proportion of each additional dollar of income that is saved.
scarcity
unemployed
Marginal Propensity to Save (MPS)
national income (NI)
32. 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.
national economic accounts
disposable personal income
hidden unemployment
law of demand
33. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc
inferior good
nominal GDP
purchasing power
perfectly elastic
34. A curve defining the relationship between real production and price level.
interest
susbtitute goods
cyclical unemployment
aggregate supply curve
35. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
nominal GDP
economics
scarce
36. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
direct relationship
scarce
demand-pull inflation
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.
price index
expansion
inferior good
diminishing marginal utility
38. 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?
law of supply
Labor
demand elasticity
elastic demand
39. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
elastic
expenditure approach
economics
cyclical unemployment
40. A shift of the demand curve resulting from a change in consumer taste and preferences.
neutral good
demand curve shifts
consumer taste and preferences
consumer income rise
41. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
inflation
consumer taste and preferences
individual choice
market economy
42. The proportion of each additional dollar of income that will go toward consumption expenditures.
complimentary goods
market supply curve
hidden unemployment
marginal propensity to consume (MPC)
43. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
trough
cyclical unemployment
inverse relationship
Gross Domestic Product
44. Anything that shows the economy as a whole.
economic aggregates
market equilibrium
disposable personal income
diminishing marginal utility
45. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
diminishing marginal utility
purchasing power
law of demand
labor force
46. Consumer income rise - demand will rise.
A decrease in TR following an increase in price = elastic demand
cost-push inflation
cyclical unemployment
neutral good
47. 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
inelastic
elastic demand
rule of 70
48. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
land
demand
import quotas
49. 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.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
frictional unemployment
hidden unemployment
market equilibrium
50. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
opportunity cost
frictional unemployment
depreciation
government expenditures
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests