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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 price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
quantity exchanged
Marginal Propensity to Save (MPS)
stagflation
2. 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
rule of 70
trade deficit
national income (NI)
fiscal policy
3. A special tax imposed on imported goods.
tariff
changes in consumer expectations
aggregate supply curve
money multiplier
4. 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
Phillips curve
money multiplier
5. 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
elastic
labor force
aggregate supply curve
6. The cost of something in terms of what one must give up to get it.
opportunity cost
national economic accounts
purchasing power
unit elastic
7. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
quantity exchanged
cyclical unemployment
market equilibrium
total revenue
8. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
expansionary fiscal policy
trade surplus
quantity exchanged
9. Period in which a recession becomes prolonged and deep - involving high unemployment.
purchasing power
depression
demand elasticity
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
10. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
government expenditures
required reserve ratio (RRR)
trough
monopoly
11. 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.
hidden unemployment
required reserve ratio (RRR)
price floor
consumer good
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.
disposable personal income
demand curve
interest
scarcity
13. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
recession
perfectly elastic
interest
expansion
14. Goods that go together - if price ? the demand for both that good and complimentary good ?.
marginal revenue
complimentary goods
normal good
marginal propensity to consume (MPC)
15. The dollar value of all the goods and services sold to house holds.
trade surplus
consumption expenditures
price index
peak
16. A measure of the price level - or the average level of prices.
normal good
individual choice
fiscal policy
price index
17. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
inverse relationship
aggregate supply curve
consumer good
18. Price control set when the market price is believed to be too low.
expansionary fiscal policy
perfectly elastic
price floor
normal good
19. Rising prices - across the board.
changes in consumer expectations
expansion
Gross National Product
inflation
20. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
market demand curve
structural unemployment
A decrease in TR following an increase in price = elastic demand
consumer good
21. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
consumer surplus
expenditure approach
monopoly
perfectly elastic
22. 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.
aggregate demand curve
elastic demand
tariff
required reserve ratio (RRR)
23. 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
cyclical unemployment
inelastic
expansionary monetary policy
fiscal policy
24. The dollar value of goods and services sold to governments.
labor force
consumer taste and preferences
government expenditures
national economic accounts
25. 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.
consumer income rise
consumer surplus
inelastic demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
26. 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
marginal revenue
Marginal Propensity to Save (MPS)
elastic demand
27. 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.
substitution effect
national income (NI)
real GDP
aggregate demand curve
28. A relationship between two factors in which the factors move in the same direction.
consumer income rise
changes in consumer expectations
trough
direct relationship
29. Short-run aggregate supply curve
A decrease in TR following an increase in price = elastic demand
inelastic
SRAS curve
law of demand
30. The highest point of a business cycle.
market economy
peak
frictional unemployment
diminishing marginal utility
31. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
elastic
market economy
Gross National Product
business cycle
32. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
total revenue
disposable personal income
Gross Domestic Product
economics
33. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
expansion
cost-push inflation
expansionary fiscal policy
recession
34. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
fiscal policy
diminishing marginal utility
resource
exchange rate
35. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
consumer surplus
trade deficit
scarce
interest
36. The income earned by households and profits earned by firms after subtracting.
Labor
law of demand
national income (NI)
opportunity cost
37. The effort of workers.
quantity exchanged
demand-pull inflation
normal good
Labor
38. 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
Marginal Propensity to Save (MPS)
movement along a demand curve
unemployed
nominal GDP
39. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
nominal GDP
Gross National Product
required reserve ratio (RRR)
40. The proportion of each additional dollar of income that is saved.
Marginal Propensity to Save (MPS)
resource
tariff
purchasing power
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.
inferior good
movement along a demand curve
national income (NI)
Labor
42. Price control set when the market price is believed to be too high.
import quotas
elastic
nominal GDP
price ceiling
43. The proportion of each additional dollar of income that will go toward consumption expenditures.
depreciation
consumer good
changes in consumer expectations
marginal propensity to consume (MPC)
44. The income of households after taxes have been paid
entrepreneurship
disposable personal income
scarce
Labor
45. The study of scarcity and choice.
demand schedule
demand
A decrease in TR following an increase in price = elastic demand
economics
46. The deliberate control of the money supply by the Federal government.
required reserve ratio (RRR)
monetary policy
A decrease in TR following an increase in price = elastic demand
complimentary goods
47. 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.
normal good
A decrease in TR following an increase in price = elastic demand
oligopoly
nominal GDP
48. The willingness and ability of buyers to purchase a good or service.
demand
frictional unemployment
hyperinflation
required reserve ratio (RRR)
49. When the percent of change in the quantity demanded equals the percent of change in price.
unit elastic
complimentary goods
price index
susbtitute goods
50. The transition point between economic recession and recovery.
monetary policy
land
trough
microeconomics