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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 Latin phrase meaning 'all things constant.'
Labor
rule of 70
trade surplus
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
2. An industry structure in which there is only one seller for a product.
susbtitute goods
movement along a demand curve
depression
monopoly
3. 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.
stagflation
consumer income rise
perfectly elastic
trough
4. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
substitution effect
number of composition of consumers
money multiplier
depression
5. 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.
economic aggregates
hidden unemployment
price ceiling
total revenue
6. The study of scarcity and choice.
economics
changes in consumer expectations
inflation
normal good
7. Anything that shows the economy as a whole.
market demand curve
recession
economic aggregates
Gross Domestic Product
8. 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.
change in quantity demanded
unit elastic
interest
aggregate demand curve
9. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
business cycles
unemployment rate
economics
10. Decisions by individuals about what to do and what not to do.
entrepreneurship
individual choice
money multiplier
scarcity
11. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
monetary policy
trade surplus
resource
perfectly elastic
12. A relationship between two factors in which the factors move in the same direction.
movement along a demand curve
direct relationship
substitution effect
law of demand
13. 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.
hyperinflation
business cycle
market supply curve
perfectly elastic
14. The payment that capital receives in the factor market.
expansionary monetary policy
interest
depression
susbtitute goods
15. 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.
microeconomics
law of supply
changes in consumer expectations
business cycles
16. Significantly responsive to a change in price.
recession
elastic
national economic accounts
demand schedule
17. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
A decrease in TR following an increase in price = elastic demand
cost-push inflation
trade surplus
inelastic
18. 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
trough
unemployed
neutral good
consumer good
19. 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.
expansionary monetary policy
demand schedule
hyperinflation
inferior good
20. Real cost of an item is its opportunity cost.
unemployed
opportunity cost
expansionary fiscal policy
elastic demand
21. Anything that can be used to produce something else
resource
neutral good
recession
depreciation
22. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
market economy
unit elastic
tariff
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
elastic demand
command economy
rule of 70
exchange rate
24. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
depression
labor force
individual choice
inverse relationship
25. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
Gross National Product
depreciation
opportunity cost
scarce
26. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
exchange rate
demand curve
27. 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.
demand curve shifts
normal good
law of supply
expansion
28. Rising prices - across the board.
unit elastic
inflation
inelastic demand
A decrease in TR following an increase in price = elastic demand
29. The income earned by households and profits earned by firms after subtracting.
market supply curve
demand curve shifts
movement along a demand curve
national income (NI)
30. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
Gross National Product
real GDP
expansionary fiscal policy
market economy
31. Not significantly responsive to changes in price.
structural unemployment
inelastic
diminishing marginal utility
inferior good
32. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
elastic demand
scarce
individual choice
trade deficit
33. The dollar value of production by a country's citizens.
Gross National Product
structural unemployment
expansionary fiscal policy
rule of 70
34. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
peak
consumer income rise
expenditure approach
changes in consumer expectations
35. Expenditure by businesses on plant and equipment and the change in business invention.
consumer taste and preferences
price index
investment expenditures
stagflation
36. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
quantity exchanged
depression
national economic accounts
Gross Domestic Product
37. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
price ceiling
elastic
scarcity
entrepreneurship
38. Consumer income rise - demand will rise.
LRAS curv
economic aggregates
neutral good
marginal revenue
39. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
quantity exchanged
law of demand
cyclical unemployment
40. 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
expansionary monetary policy
unit elastic
demand
41. 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.
demand curve
law of supply
required reserve ratio (RRR)
direct relationship
42. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
Phillips curve
elastic demand
depression
changes in consumer expectations
43. A special tax imposed on imported goods.
tariff
complimentary goods
resource
economics
44. The deliberate control of the money supply by the Federal government.
monetary policy
land
consumption expenditures
frictional unemployment
45. The proportion of each additional dollar of income that is saved.
SRAS curve
Marginal Propensity to Save (MPS)
national income (NI)
Labor
46. A curve defining the relationship between real production and price level.
labor force
aggregate supply curve
unemployment rate
inflation
47. 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.
market demand curve
normal good
opportunity cost
perfectly elastic
48. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
land
opportunity cost
required reserve ratio (RRR)
macroeconomics
49. Short-run aggregate supply curve
change in quantity demanded
SRAS curve
microeconomics
inflation
50. 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.
opportunity cost
change in quantity demanded
Phillips curve
demand