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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. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
demand curve shifts
nominal GDP
economics
2. Anything that shows the economy as a whole.
required reserve ratio (RRR)
tariff
nominal GDP
economic aggregates
3. Price control set when the market price is believed to be too high.
money multiplier
demand curve
consumer taste and preferences
price ceiling
4. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
cyclical unemployment
entrepreneurship
inflation
aggregate supply curve
5. A bad depressingly prolonged recession in economic activity.
structural unemployment
inferior good
trough
depression
6. The cost of something in terms of what one must give up to get it.
purchasing power
trade surplus
labor force
opportunity cost
7. 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.
LRAS curv
aggregate demand curve
economics
A decrease in TR following an increase in price = elastic demand
8. 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.
interest
demand curve shifts
demand-pull inflation
consumer taste and preferences
9. The deliberate control of the money supply by the Federal government.
monetary policy
marginal propensity to consume (MPC)
law of demand
expansionary fiscal policy
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.
required reserve ratio (RRR)
oligopoly
market demand curve
consumer surplus
11. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
recession
inverse relationship
market supply curve
economic aggregates
12. A shift of the demand curve resulting from a change in consumer taste and preferences.
fiscal policy
market equilibrium
consumer taste and preferences
trough
13. Real cost of an item is its opportunity cost.
opportunity cost
macroeconomics
Marginal Propensity to Save (MPS)
consumer surplus
14. An industry structure in which there is only one seller for a product.
LRAS curv
fiscal policy
price ceiling
monopoly
15. Price control set when the market price is believed to be too low.
aggregate supply curve
disposable personal income
total revenue
price floor
16. The income of households after taxes have been paid
consumer surplus
SRAS curve
disposable personal income
nominal GDP
17. 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.
cost-push inflation
inelastic
frictional unemployment
unemployment rate
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.
perfectly elastic
government expenditures
elastic demand
quantity exchanged
19. Period in which a recession becomes prolonged and deep - involving high unemployment.
consumer income rise
import quotas
depression
Gross National Product
20. 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
business cycle
normal good
law of demand
21. 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 taste and preferences
trade deficit
inelastic demand
unemployed
22. The dollar value of production by a country's citizens.
market supply curve
Gross National Product
marginal revenue
price ceiling
23. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
demand
law of demand
trade surplus
diminishing marginal utility
24. The dollar value of goods and services sold to governments.
government expenditures
unemployed
consumer income rise
diminishing marginal utility
25. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
scarce
price index
consumption expenditures
expansion
26. Significantly responsive to a change in price.
elastic
depression
resource
perfectly elastic
27. 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
stagflation
expansionary monetary policy
market demand curve
real GDP
28. The study of scarcity and choice.
LRAS curv
demand elasticity
direct relationship
economics
29. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
cyclical unemployment
national economic accounts
purchasing power
hidden unemployment
30. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).
expansionary fiscal policy
LRAS curv
consumer taste and preferences
trough
31. 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.
consumer good
individual choice
demand curve shifts
marginal revenue
32. 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.
demand schedule
law of supply
substitution effect
SRAS curve
33. 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
command economy
perfectly elastic
inferior good
34. The sum of all the quantities of a good supplies by all producers at each price.
resource
market supply curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarce
35. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
demand curve shifts
resource
inelastic demand
expenditure approach
36. 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).
consumer good
market demand curve
law of supply
economics
37. The amount of a good actually sold.
Gross Domestic Product
consumer good
quantity exchanged
unemployment rate
38. The proportion of each additional dollar of income that will go toward consumption expenditures.
number of composition of consumers
peak
inelastic demand
marginal propensity to consume (MPC)
39. A measure of the price level - or the average level of prices.
expansion
demand
price index
structural unemployment
40. 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).
susbtitute goods
trade surplus
cost-push inflation
expansion
41. The addition to total revenue created by selling one additional unit of ouput.
changes in consumer expectations
marginal revenue
trade deficit
inflation
42. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
demand elasticity
normal good
inferior good
scarcity
43. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
microeconomics
depreciation
demand
44. 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
complimentary goods
depression
change in quantity demanded
45. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
demand curve
Phillips curve
market economy
susbtitute goods
46. Consumer income rise - demand will rise.
total revenue
economic aggregates
neutral good
aggregate supply curve
47. Anything that can be used to produce something else
opportunity cost
monetary policy
resource
consumer taste and preferences
48. Goods that go together - if price ? the demand for both that good and complimentary good ?.
aggregate demand curve
unit elastic
inflation
complimentary goods
49. An increase in the price level
business cycles
rule of 70
inflation
unemployed
50. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
changes in consumer expectations
demand-pull inflation
interest
total revenue