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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. An industry structure in which there is only one seller for a product.
government expenditures
cyclical unemployment
trade deficit
monopoly
2. The amount of a good actually sold.
market equilibrium
economics
quantity exchanged
inverse relationship
3. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
susbtitute goods
trade surplus
aggregate supply curve
scarcity
4. Significantly responsive to a change in price.
trade surplus
elastic
economics
change in quantity demanded
5. 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.
market supply curve
demand-pull inflation
inelastic demand
recession
6. The study of scarcity and choice.
economics
normal good
demand schedule
demand curve
7. Fluctuations in real GDP around the trend value; also called economic fluctuations.
simple money multiplier
business cycles
required reserve ratio (RRR)
demand curve
8. Government officials make decisions about economy.
consumer taste and preferences
inflation
price ceiling
command economy
9. Goods that go together - if price ? the demand for both that good and complimentary good ?.
demand elasticity
market equilibrium
complimentary goods
inverse relationship
10. 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.
monopoly
investment expenditures
law of demand
frictional unemployment
11. A curve defining the relationship between real production and price level.
aggregate supply curve
individual choice
number of composition of consumers
tariff
12. The dollar value of production within a nation's border.
SRAS curve
quantity exchanged
Gross Domestic Product
oligopoly
13. 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.
money multiplier
structural unemployment
resource
unit elastic
14. 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.
marginal propensity to consume (MPC)
market supply curve
demand curve shifts
diminishing marginal utility
15. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
market economy
fiscal policy
price index
demand elasticity
16. 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
money multiplier
inelastic
peak
17. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
law of supply
economics
entrepreneurship
national economic accounts
18. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
market supply curve
law of demand
entrepreneurship
19. The amount of money available to consumers to purchase goods and services.
business cycles
market economy
Labor
purchasing power
20. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
economic aggregates
rule of 70
scarcity
trade deficit
21. 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 propensity to consume (MPC)
expansionary fiscal policy
market economy
22. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
demand
unit elastic
law of demand
23. The lowest point of a business cycle
national economic accounts
demand schedule
unemployment rate
trough
24. 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).
perfectly elastic
unemployment rate
law of demand
total revenue
25. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
elastic
recession
changes in consumer expectations
market economy
26. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
diminishing marginal utility
consumer income rise
inelastic demand
law of demand
27. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
market supply curve
trough
change in quantity demanded
scarce
28. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
business cycle
hyperinflation
demand elasticity
substitution effect
29. The dollar value of production by a country's citizens.
Labor
Gross National Product
stagflation
susbtitute goods
30. The deliberate control of the money supply by the Federal government.
monopoly
marginal revenue
money multiplier
monetary policy
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.
fiscal policy
number of composition of consumers
quantity exchanged
law of supply
32. 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.
hyperinflation
stagflation
economic aggregates
aggregate supply curve
33. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
expansionary fiscal policy
total revenue
disposable personal income
law of demand
34. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.
neutral good
law of supply
government expenditures
oligopoly
35. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
demand curve
aggregate demand curve
macroeconomics
frictional unemployment
36. The proportion of each additional dollar of income that is saved.
SRAS curve
Marginal Propensity to Save (MPS)
economic aggregates
hidden unemployment
37. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
structural unemployment
normal good
aggregate supply curve
marginal revenue
38. 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
Gross Domestic Product
law of demand
real GDP
market demand curve
39. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
required reserve ratio (RRR)
A decrease in TR following an increase in price = elastic demand
expansionary monetary policy
consumer good
40. 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
substitution effect
fiscal policy
number of composition of consumers
41. The highest point of a business cycle.
scarce
perfectly elastic
inferior good
peak
42. Decisions by individuals about what to do and what not to do.
stagflation
individual choice
consumer taste and preferences
expansionary monetary policy
43. The payment that capital receives in the factor market.
demand curve
real GDP
consumer income rise
interest
44. Anything that can be used to produce something else
inflation
nominal GDP
resource
scarcity
45. The transition point between economic recession and recovery.
quantity exchanged
number of composition of consumers
interest
trough
46. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
consumer taste and preferences
total revenue
cyclical unemployment
inverse relationship
47. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
trade surplus
law of supply
diminishing marginal utility
market equilibrium
48. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
expansionary fiscal policy
Labor
elastic
49. Price control set when the market price is believed to be too low.
law of demand
marginal propensity to consume (MPC)
diminishing marginal utility
price floor
50. Not significantly responsive to changes in price.
inelastic
Phillips curve
money multiplier
interest