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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 relationship between two factors in which the factors move in the same direction.
price ceiling
demand curve
substitution effect
direct relationship
2. 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
real GDP
entrepreneurship
economic aggregates
direct relationship
3. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc
substitution effect
stagflation
nominal GDP
national economic accounts
4. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
expansion
normal good
stagflation
demand elasticity
5. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
macroeconomics
recession
law of supply
total revenue
6. Expenditure by businesses on plant and equipment and the change in business invention.
trade surplus
investment expenditures
recession
unemployed
7. The proportion of each additional dollar of income that will go toward consumption expenditures.
susbtitute goods
consumer surplus
marginal propensity to consume (MPC)
expansion
8. Consumer income rise - demand will rise.
investment expenditures
scarcity
neutral good
marginal revenue
9. An industry structure in which there is only one seller for a product.
price ceiling
monopoly
price index
market demand curve
10. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
marginal revenue
total revenue
Phillips curve
inferior good
11. (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
demand curve shifts
business cycle
economics
12. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
price ceiling
inelastic
scarcity
disposable personal income
13. The dollar value of production by a country's citizens.
cyclical unemployment
demand schedule
law of supply
Gross National Product
14. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
Gross National Product
hyperinflation
quantity exchanged
15. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
land
unemployment rate
cyclical unemployment
nominal GDP
16. 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).
cost-push inflation
aggregate supply curve
unit elastic
opportunity cost
17. 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.
demand-pull inflation
exchange rate
law of demand
substitution effect
18. Anything that shows the economy as a whole.
elastic
economic aggregates
price ceiling
economics
19. The amount of a good actually sold.
inflation
required reserve ratio (RRR)
LRAS curv
quantity exchanged
20. Restrictions on the quantity of a good that can be imported
import quotas
government expenditures
depression
neutral good
21. The highest point of a business cycle.
elastic demand
money multiplier
peak
expansionary fiscal policy
22. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
interest
trough
Phillips curve
trough
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.
frictional unemployment
consumer surplus
inferior good
depreciation
24. Decisions by individuals about what to do and what not to do.
price floor
Labor
depression
individual choice
25. The study of scarcity and choice.
microeconomics
economics
peak
labor force
26. Anything that can be used to produce something else
change in quantity demanded
expansion
resource
price floor
27. The income earned by households and profits earned by firms after subtracting.
national income (NI)
business cycles
inverse relationship
demand-pull inflation
28. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
nominal GDP
movement along a demand curve
Labor
inelastic demand
29. Price control set when the market price is believed to be too low.
price floor
expansionary fiscal policy
inflation
change in quantity demanded
30. 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
expansionary monetary policy
trough
change in quantity demanded
marginal revenue
31. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
microeconomics
price index
inelastic demand
normal good
32. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
required reserve ratio (RRR)
market demand curve
economic aggregates
market economy
33. 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
structural unemployment
changes in consumer expectations
market equilibrium
34. A curve defining the relationship between real production and price level.
changes in consumer expectations
aggregate supply curve
unemployment rate
real GDP
35. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
import quotas
depreciation
interest
entrepreneurship
36. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
frictional unemployment
government expenditures
business cycle
37. 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.
cost-push inflation
national economic accounts
consumer income rise
elastic demand
38. The income of households after taxes have been paid
disposable personal income
LRAS curv
opportunity cost
real GDP
39. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
monetary policy
inflation
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
40. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
business cycles
demand-pull inflation
expansion
macroeconomics
41. The amount of money available to consumers to purchase goods and services.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
substitution effect
diminishing marginal utility
purchasing power
42. The long-run pattern of growth and recession.
susbtitute goods
complimentary goods
business cycle
unemployed
43. Not significantly responsive to changes in price.
inelastic
quantity exchanged
business cycles
expansion
44. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
marginal propensity to consume (MPC)
consumption expenditures
substitution effect
cost-push inflation
45. A bad depressingly prolonged recession in economic activity.
depression
opportunity cost
price floor
national economic accounts
46. Fluctuations in real GDP around the trend value; also called economic fluctuations.
unit elastic
fiscal policy
inflation
business cycles
47. 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
trough
price ceiling
expansionary monetary policy
48. Price control set when the market price is believed to be too high.
price ceiling
entrepreneurship
market demand curve
consumer good
49. 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?
investment expenditures
demand elasticity
LRAS curv
peak
50. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
law of demand
command economy
business cycles
fiscal policy