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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. 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.
monopoly
inelastic demand
inverse relationship
marginal propensity to consume (MPC)
2. 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).
opportunity cost
nominal GDP
market demand curve
opportunity cost
3. Anything that shows the economy as a whole.
economic aggregates
price floor
diminishing marginal utility
oligopoly
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.
elastic demand
stagflation
scarcity
changes in consumer expectations
5. Not significantly responsive to changes in price.
demand
inelastic
substitution effect
inelastic demand
6. The dollar value of production by a country's citizens.
marginal propensity to consume (MPC)
resource
Gross National Product
economics
7. A measure of the price level - or the average level of prices.
price index
unemployment rate
depreciation
law of supply
8. A shift of the demand curve resulting from a change in consumer taste and preferences.
market equilibrium
purchasing power
demand
consumer taste and preferences
9. The long-run pattern of growth and recession.
import quotas
business cycle
cost-push inflation
rule of 70
10. 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.
substitution effect
consumer surplus
simple money multiplier
inverse relationship
11. Long- run aggregate supply curve
price ceiling
consumer surplus
labor force
LRAS curv
12. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
national economic accounts
inverse relationship
substitution effect
13. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
required reserve ratio (RRR)
entrepreneurship
demand schedule
14. 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
SRAS curve
diminishing marginal utility
real GDP
15. 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.
inferior good
changes in consumer expectations
entrepreneurship
complimentary goods
16. Real cost of an item is its opportunity cost.
opportunity cost
cyclical unemployment
inelastic
market demand curve
17. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
marginal revenue
stagflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
18. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
quantity exchanged
trade surplus
rule of 70
19. The payment that capital receives in the factor market.
interest
demand curve
elastic demand
expenditure approach
20. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
elastic demand
trade surplus
market equilibrium
demand
21. The lowest point of a business cycle
entrepreneurship
import quotas
inelastic
trough
22. Anything that can be used to produce something else
trade surplus
resource
money multiplier
expansionary monetary policy
23. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
diminishing marginal utility
expenditure approach
trade deficit
national income (NI)
24. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
aggregate demand curve
demand curve
trade surplus
25. 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
money multiplier
unemployment rate
demand curve
26. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
A decrease in TR following an increase in price = elastic demand
interest
demand-pull inflation
27. 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.
simple money multiplier
peak
trough
labor force
28. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
required reserve ratio (RRR)
entrepreneurship
opportunity cost
law of supply
29. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
macroeconomics
marginal revenue
structural unemployment
inflation
30. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
investment expenditures
individual choice
depreciation
normal good
31. 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.
law of supply
price ceiling
complimentary goods
demand schedule
32. Decisions by individuals about what to do and what not to do.
market economy
business cycles
individual choice
disposable personal income
33. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
scarcity
marginal revenue
national economic accounts
depression
34. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
A decrease in TR following an increase in price = elastic demand
required reserve ratio (RRR)
opportunity cost
command economy
35. A special tax imposed on imported goods.
scarcity
neutral good
tariff
Phillips curve
36. 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
market supply curve
law of demand
trough
nominal GDP
37. Significantly responsive to a change in price.
monopoly
entrepreneurship
elastic
depreciation
38. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
scarce
direct relationship
substitution effect
Labor
39. 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
demand
Gross Domestic Product
resource
rule of 70
40. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
business cycle
individual choice
diminishing marginal utility
expenditure approach
41. Restrictions on the quantity of a good that can be imported
diminishing marginal utility
import quotas
law of supply
LRAS curv
42. 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
unemployed
purchasing power
stagflation
elastic
43. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
SRAS curve
money multiplier
depression
national income (NI)
44. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
trough
national income (NI)
opportunity cost
45. 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
real GDP
stagflation
aggregate supply curve
recession
46. The transition point between economic recession and recovery.
inflation
trough
market economy
rule of 70
47. A Latin phrase meaning 'all things constant.'
structural unemployment
Gross National Product
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
direct relationship
48. Price control set when the market price is believed to be too high.
required reserve ratio (RRR)
rule of 70
price ceiling
substitution effect
49. The effort of workers.
Gross Domestic Product
nominal GDP
Labor
elastic
50. The income earned by households and profits earned by firms after subtracting.
consumer income rise
demand elasticity
national income (NI)
marginal revenue