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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. Government officials make decisions about economy.
command economy
inflation
economic aggregates
interest
2. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
perfectly elastic
demand curve shifts
exchange rate
scarcity
3. Price control set when the market price is believed to be too high.
individual choice
government expenditures
price ceiling
number of composition of consumers
4. A shift of the demand curve resulting from a change in consumer taste and preferences.
trade surplus
consumer taste and preferences
demand curve shifts
demand-pull inflation
5. A Latin phrase meaning 'all things constant.'
money multiplier
expansion
tariff
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
6. 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
monetary policy
demand schedule
command economy
7. The study of scarcity and choice.
direct relationship
economics
investment expenditures
peak
8. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
business cycle
inverse relationship
monopoly
Marginal Propensity to Save (MPS)
9. The transition point between economic recession and recovery.
hidden unemployment
labor force
trough
entrepreneurship
10. The sum of all the quantities of a good supplies by all producers at each price.
SRAS curve
expansion
market supply curve
entrepreneurship
11. The deliberate control of the money supply by the Federal government.
expansionary fiscal policy
cyclical unemployment
monetary policy
recession
12. 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.
elastic
frictional unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
exchange rate
13. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
consumption expenditures
government expenditures
market equilibrium
inferior good
14. Short-run aggregate supply curve
inelastic demand
resource
SRAS curve
trough
15. Rising prices - across the board.
unemployment rate
scarce
inflation
change in quantity demanded
16. Anything that can be used to produce something else
cyclical unemployment
required reserve ratio (RRR)
resource
consumption expenditures
17. 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
complimentary goods
land
nominal GDP
number of composition of consumers
18. 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.
law of demand
demand curve shifts
demand curve
cyclical unemployment
19. 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
expansionary monetary policy
land
unemployment rate
20. The amount of money available to consumers to purchase goods and services.
expenditure approach
law of supply
purchasing power
unit elastic
21. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
price ceiling
entrepreneurship
Gross Domestic Product
22. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
price floor
neutral good
movement along a demand curve
normal good
23. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
demand curve
trough
macroeconomics
24. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
inelastic demand
monetary policy
expansion
law of demand
25. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.
scarce
consumer taste and preferences
Gross Domestic Product
change in quantity demanded
26. 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
Marginal Propensity to Save (MPS)
depression
exchange rate
27. The addition to total revenue created by selling one additional unit of ouput.
marginal revenue
aggregate demand curve
complimentary goods
recession
28. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
national income (NI)
susbtitute goods
consumption expenditures
changes in consumer expectations
29. The price of a domestic currency in terms of a foreign currency.
exchange rate
neutral good
disposable personal income
cyclical unemployment
30. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
scarcity
consumer income rise
price floor
31. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
frictional unemployment
land
demand curve
trade surplus
32. The effort of workers.
changes in consumer expectations
Labor
substitution effect
required reserve ratio (RRR)
33. Expenditure by businesses on plant and equipment and the change in business invention.
inelastic
investment expenditures
nominal GDP
perfectly elastic
34. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
market equilibrium
demand curve
demand curve shifts
required reserve ratio (RRR)
35. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
inflation
disposable personal income
interest
diminishing marginal utility
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).
price ceiling
purchasing power
demand
unemployment rate
37. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
consumption expenditures
inelastic demand
total revenue
price floor
38. 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.
Phillips curve
fiscal policy
demand curve shifts
perfectly elastic
39. 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.
individual choice
aggregate demand curve
perfectly elastic
depreciation
40. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
price index
consumer income rise
individual choice
Phillips curve
41. The payment that capital receives in the factor market.
price ceiling
microeconomics
interest
elastic
42. 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
stagflation
microeconomics
unemployment rate
43. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
labor force
macroeconomics
SRAS curve
national economic accounts
44. The dollar value of all the goods and services sold to house holds.
marginal propensity to consume (MPC)
inelastic
consumption expenditures
monetary policy
45. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
structural unemployment
consumer income rise
cyclical unemployment
monetary policy
46. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
consumer surplus
market economy
normal good
aggregate supply curve
47. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
Marginal Propensity to Save (MPS)
purchasing power
stagflation
expenditure approach
48. The dollar value of production by a country's citizens.
direct relationship
marginal propensity to consume (MPC)
demand curve
Gross National Product
49. 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
macroeconomics
price floor
law of demand
50. 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.
import quotas
hyperinflation
economic aggregates
nominal GDP