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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 specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
change in quantity demanded
neutral good
hyperinflation
required reserve ratio (RRR)
2. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
import quotas
market economy
business cycles
perfectly elastic
3. 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.
structural unemployment
simple money multiplier
nominal GDP
number of composition of consumers
4. An industry structure in which there is only one seller for a product.
command economy
monopoly
market demand curve
price index
5. Rising prices - across the board.
inflation
expansionary monetary policy
neutral good
unit elastic
6. 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.
neutral good
LRAS curv
labor force
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
7. 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.
demand
normal good
marginal revenue
frictional unemployment
8. 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.
inelastic demand
consumer income rise
consumer taste and preferences
Marginal Propensity to Save (MPS)
9. When the percent of change in the quantity demanded equals the percent of change in price.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unit elastic
scarce
trough
10. The amount of money available to consumers to purchase goods and services.
fiscal policy
structural unemployment
purchasing power
tariff
11. 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?
market economy
demand elasticity
demand curve
entrepreneurship
12. The dollar value of all the goods and services sold to house holds.
Gross National Product
frictional unemployment
consumption expenditures
inflation
13. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
Gross National Product
economic aggregates
demand curve shifts
14. The dollar value of production within a nation's border.
aggregate demand curve
money multiplier
oligopoly
Gross Domestic Product
15. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
inelastic demand
peak
neutral good
16. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
trade deficit
scarce
simple money multiplier
neutral good
17. 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
scarce
economic aggregates
command economy
18. 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.
opportunity cost
demand
perfectly elastic
price index
19. 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
national economic accounts
rule of 70
aggregate demand curve
economic aggregates
20. An increase in the price level
money multiplier
inflation
opportunity cost
quantity exchanged
21. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
A decrease in TR following an increase in price = elastic demand
scarcity
money multiplier
government expenditures
22. 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
quantity exchanged
hyperinflation
law of demand
price floor
23. A measure of the price level - or the average level of prices.
law of demand
neutral good
price index
opportunity cost
24. 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.
interest
demand elasticity
unit elastic
microeconomics
25. The dollar value of goods and services sold to governments.
quantity exchanged
expansion
government expenditures
land
26. Anything that shows the economy as a whole.
law of demand
rule of 70
inferior good
economic aggregates
27. The study of scarcity and choice.
Gross Domestic Product
elastic demand
economics
disposable personal income
28. Not significantly responsive to changes in price.
movement along a demand curve
marginal propensity to consume (MPC)
inflation
inelastic
29. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
hidden unemployment
inelastic
expansion
scarce
30. 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).
market demand curve
oligopoly
A decrease in TR following an increase in price = elastic demand
individual choice
31. 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
total revenue
market economy
Labor
32. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
substitution effect
exchange rate
inelastic demand
land
33. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
Gross National Product
consumer surplus
command economy
inelastic
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.
peak
Gross National Product
oligopoly
national economic accounts
35. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
elastic
command economy
inverse relationship
total revenue
36. 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).
oligopoly
national economic accounts
unemployment rate
consumer income rise
37. 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
number of composition of consumers
law of demand
direct relationship
real GDP
38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
change in quantity demanded
land
entrepreneurship
real GDP
39. 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).
scarce
unit elastic
cost-push inflation
complimentary goods
40. A shift of the demand curve resulting from a change in consumer taste and preferences.
market economy
demand curve
consumer surplus
consumer taste and preferences
41. 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.
real GDP
inferior good
fiscal policy
market equilibrium
42. Government officials make decisions about economy.
monetary policy
unit elastic
command economy
quantity exchanged
43. Short-run aggregate supply curve
demand curve
expansionary fiscal policy
land
SRAS curve
44. The dollar value of production by a country's citizens.
Labor
government expenditures
individual choice
Gross National Product
45. The long-run pattern of growth and recession.
consumption expenditures
business cycle
total revenue
tariff
46. A bad depressingly prolonged recession in economic activity.
depression
inelastic demand
expansionary monetary policy
aggregate demand curve
47. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
Labor
required reserve ratio (RRR)
fiscal policy
Gross National Product
48. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
resource
entrepreneurship
inferior good
trade deficit
49. 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.
individual choice
fiscal policy
unemployed
elastic demand
50. Price control set when the market price is believed to be too low.
inelastic
price ceiling
elastic demand
price floor