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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 difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
complimentary goods
oligopoly
consumer surplus
marginal revenue
2. The payment that capital receives in the factor market.
interest
nominal GDP
money multiplier
market equilibrium
3. When the percent of change in the quantity demanded equals the percent of change in price.
unemployment rate
simple money multiplier
inelastic demand
unit elastic
4. An increase in the price level
inflation
law of demand
direct relationship
marginal propensity to consume (MPC)
5. 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.
demand-pull inflation
inverse relationship
elastic demand
cost-push inflation
6. Rising prices - across the board.
inflation
depreciation
macroeconomics
quantity exchanged
7. 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
consumption expenditures
business cycle
unemployed
peak
8. 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
marginal revenue
government expenditures
hyperinflation
9. A relationship between two factors in which the factors move in the same direction.
normal good
direct relationship
marginal propensity to consume (MPC)
substitution effect
10. 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.
oligopoly
unemployed
resource
structural unemployment
11. Not significantly responsive to changes in price.
trough
expansion
inelastic
consumer surplus
12. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
complimentary goods
demand curve
A decrease in TR following an increase in price = elastic demand
command economy
13. 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.
resource
depression
stagflation
expenditure approach
14. Restrictions on the quantity of a good that can be imported
price floor
import quotas
market supply curve
rule of 70
15. Decisions by individuals about what to do and what not to do.
Phillips curve
law of supply
individual choice
frictional unemployment
16. The highest point of a business cycle.
required reserve ratio (RRR)
cyclical unemployment
structural unemployment
peak
17. 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.
price ceiling
LRAS curv
hyperinflation
consumer good
18. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
demand elasticity
business cycle
exchange rate
19. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
perfectly elastic
Gross Domestic Product
opportunity cost
cyclical unemployment
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.
frictional unemployment
national economic accounts
demand-pull inflation
inelastic
21. 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.
national economic accounts
demand-pull inflation
nominal GDP
expenditure approach
22. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
expenditure approach
inelastic
demand
macroeconomics
23. (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.
number of composition of consumers
LRAS curv
law of demand
trough
24. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
Marginal Propensity to Save (MPS)
microeconomics
inflation
total revenue
25. A measure of the price level - or the average level of prices.
change in quantity demanded
demand schedule
government expenditures
price index
26. The income of households after taxes have been paid
disposable personal income
aggregate demand curve
unemployed
market economy
27. Consumer income rise - demand will rise.
trough
entrepreneurship
neutral good
diminishing marginal utility
28. Anything that can be used to produce something else
tariff
direct relationship
hyperinflation
resource
29. The dollar value of production within a nation's border.
opportunity cost
expenditure approach
market equilibrium
Gross Domestic Product
30. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
unemployment rate
susbtitute goods
trade surplus
31. 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.
trade deficit
inelastic demand
expansionary fiscal policy
expansion
32. 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).
trade surplus
cost-push inflation
real GDP
demand schedule
33. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
total revenue
number of composition of consumers
diminishing marginal utility
peak
34. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
land
business cycles
law of demand
expansion
35. 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
frictional unemployment
rule of 70
movement along a demand curve
demand
36. The price of a domestic currency in terms of a foreign currency.
exchange rate
demand curve
movement along a demand curve
law of demand
37. The income earned by households and profits earned by firms after subtracting.
consumer good
fiscal policy
national income (NI)
resource
38. The lowest point of a business cycle
simple money multiplier
monetary policy
peak
trough
39. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
Gross National Product
expansionary fiscal policy
price index
recession
40. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
change in quantity demanded
land
economics
economic aggregates
41. A curve defining the relationship between real production and price level.
aggregate supply curve
macroeconomics
Phillips curve
inverse relationship
42. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
scarcity
trough
price index
complimentary goods
43. A shift of the demand curve resulting from a change in consumer taste and preferences.
law of demand
demand-pull inflation
inelastic demand
consumer taste and preferences
44. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
perfectly elastic
Phillips curve
frictional unemployment
45. 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
inferior good
neutral good
national income (NI)
46. Short-run aggregate supply curve
number of composition of consumers
quantity exchanged
SRAS curve
market economy
47. The addition to total revenue created by selling one additional unit of ouput.
inflation
marginal revenue
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
demand schedule
48. The long-run pattern of growth and recession.
entrepreneurship
inflation
neutral good
business cycle
49. A Latin phrase meaning 'all things constant.'
elastic
demand schedule
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
complimentary goods
50. A special tax imposed on imported goods.
marginal revenue
monopoly
expansion
tariff