SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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 cost of something in terms of what one must give up to get it.
inverse relationship
command economy
opportunity cost
oligopoly
2. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount
market demand curve
expansionary monetary policy
economic aggregates
market supply curve
3. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
import quotas
national income (NI)
inflation
4. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
law of demand
consumer surplus
entrepreneurship
Gross National Product
5. The lowest point of a business cycle
number of composition of consumers
cost-push inflation
trough
fiscal policy
6. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand
nominal GDP
money multiplier
demand curve
7. 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
depreciation
disposable personal income
number of composition of consumers
rule of 70
8. The price of a domestic currency in terms of a foreign currency.
demand-pull inflation
opportunity cost
exchange rate
trade surplus
9. Long- run aggregate supply curve
demand
monetary policy
LRAS curv
inflation
10. A relationship between two factors in which the factors move in the same direction.
quantity exchanged
direct relationship
government expenditures
labor force
11. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
peak
macroeconomics
land
scarcity
12. 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
inverse relationship
substitution effect
import quotas
13. 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.
complimentary goods
total revenue
expenditure approach
labor force
14. A Latin phrase meaning 'all things constant.'
expenditure approach
depreciation
demand schedule
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
15. Fluctuations in real GDP around the trend value; also called economic fluctuations.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
elastic demand
business cycles
hidden unemployment
16. The dollar value of all the goods and services sold to house holds.
consumption expenditures
land
market economy
consumer income rise
17. The addition to total revenue created by selling one additional unit of ouput.
expansionary monetary policy
economics
hidden unemployment
marginal revenue
18. Goods that go together - if price ? the demand for both that good and complimentary good ?.
rule of 70
complimentary goods
direct relationship
SRAS curve
19. Expenditure by businesses on plant and equipment and the change in business invention.
investment expenditures
national income (NI)
command economy
consumption expenditures
20. An increase or decrease in consumer income will cause a shift in the Demand Curve.
LRAS curv
consumer good
total revenue
elastic demand
21. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
market economy
A decrease in TR following an increase in price = elastic demand
national economic accounts
perfectly elastic
22. The willingness and ability of buyers to purchase a good or service.
law of demand
business cycle
opportunity cost
demand
23. 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.
national income (NI)
simple money multiplier
quantity exchanged
inferior good
24. The effort of workers.
inferior good
real GDP
Labor
demand curve
25. Anything that can be used to produce something else
required reserve ratio (RRR)
demand schedule
resource
monopoly
26. 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.
stagflation
demand schedule
entrepreneurship
nominal GDP
27. Significantly responsive to a change in price.
law of supply
expansionary fiscal policy
fiscal policy
elastic
28. 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.
disposable personal income
hidden unemployment
scarce
consumption expenditures
29. 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
hyperinflation
stagflation
trough
real GDP
30. 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).
unemployment rate
money multiplier
cyclical unemployment
entrepreneurship
31. Anything that shows the economy as a whole.
market economy
aggregate demand curve
economic aggregates
macroeconomics
32. Government officials make decisions about economy.
land
Gross Domestic Product
cost-push inflation
command economy
33. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
unit elastic
cyclical unemployment
trade surplus
depreciation
34. An industry structure in which there is only one seller for a product.
macroeconomics
government expenditures
exchange rate
monopoly
35. Restrictions on the quantity of a good that can be imported
neutral good
scarcity
microeconomics
import quotas
36. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
demand curve shifts
opportunity cost
movement along a demand curve
inelastic demand
37. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
complimentary goods
consumption expenditures
frictional unemployment
38. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
Phillips curve
disposable personal income
law of demand
demand
39. Short-run aggregate supply curve
perfectly elastic
SRAS curve
fiscal policy
demand-pull inflation
40. Real cost of an item is its opportunity cost.
opportunity cost
inelastic demand
disposable personal income
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
41. The dollar value of production within a nation's border.
Gross Domestic Product
LRAS curv
command economy
aggregate supply curve
42. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
peak
substitution effect
susbtitute goods
investment expenditures
43. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
entrepreneurship
normal good
land
changes in consumer expectations
44. Price control set when the market price is believed to be too high.
real GDP
economics
price ceiling
entrepreneurship
45. 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
inelastic
law of demand
demand curve shifts
economics
46. 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.
national income (NI)
structural unemployment
number of composition of consumers
hyperinflation
47. 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
economics
Gross Domestic Product
national economic accounts
48. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
inverse relationship
cyclical unemployment
command economy
law of supply
49. The dollar value of goods and services sold to governments.
law of demand
command economy
aggregate demand curve
government expenditures
50. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
expansion
cyclical unemployment
economics