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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 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)
law of demand
consumer taste and preferences
microeconomics
2. A special tax imposed on imported goods.
tariff
number of composition of consumers
demand elasticity
law of supply
3. 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.
movement along a demand curve
demand schedule
price floor
scarcity
4. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
inelastic
depression
expansionary fiscal policy
5. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
national economic accounts
market economy
change in quantity demanded
purchasing power
6. 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.
Labor
simple money multiplier
inferior good
opportunity cost
7. The addition to total revenue created by selling one additional unit of ouput.
simple money multiplier
disposable personal income
inflation
marginal revenue
8. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expansion
expenditure approach
oligopoly
cyclical unemployment
9. The highest point of a business cycle.
entrepreneurship
peak
expansionary fiscal policy
frictional unemployment
10. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
direct relationship
trade surplus
resource
fiscal policy
11. 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?
elastic
number of composition of consumers
demand elasticity
diminishing marginal utility
12. The amount of money available to consumers to purchase goods and services.
purchasing power
Gross Domestic Product
complimentary goods
market economy
13. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
quantity exchanged
market equilibrium
expansionary fiscal policy
LRAS curv
14. A curve defining the relationship between real production and price level.
aggregate supply curve
inelastic
simple money multiplier
individual choice
15. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
government expenditures
consumer surplus
inelastic demand
demand curve
16. 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.
trade surplus
hyperinflation
market demand curve
demand-pull inflation
17. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
entrepreneurship
price floor
SRAS curve
substitution effect
18. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
macroeconomics
monetary policy
normal good
depreciation
19. 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.
total revenue
direct relationship
elastic demand
elastic
20. The dollar value of production by a country's citizens.
Gross National Product
direct relationship
change in quantity demanded
normal good
21. 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).
business cycles
opportunity cost
inferior good
unemployment rate
22. 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
nominal GDP
price ceiling
trade surplus
susbtitute goods
23. The price of a domestic currency in terms of a foreign currency.
microeconomics
exchange rate
consumer surplus
elastic demand
24. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
law of supply
law of demand
opportunity cost
macroeconomics
25. The dollar value of production within a nation's border.
scarce
law of demand
Gross Domestic Product
entrepreneurship
26. The study of scarcity and choice.
macroeconomics
stagflation
purchasing power
economics
27. 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.
scarce
demand curve
hyperinflation
peak
28. The payment that capital receives in the factor market.
microeconomics
inelastic demand
interest
aggregate supply curve
29. Long- run aggregate supply curve
resource
LRAS curv
money multiplier
expenditure approach
30. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.
law of demand
monopoly
investment expenditures
law of supply
31. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
perfectly elastic
inverse relationship
frictional unemployment
business cycle
32. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
market supply curve
movement along a demand curve
consumer income rise
SRAS curve
33. 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
individual choice
money multiplier
elastic
34. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.
simple money multiplier
consumer good
perfectly elastic
law of demand
35. Short-run aggregate supply curve
trough
macroeconomics
SRAS curve
elastic demand
36. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
LRAS curv
total revenue
scarcity
37. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
SRAS curve
aggregate supply curve
macroeconomics
national economic accounts
38. 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
demand curve shifts
unit elastic
aggregate supply curve
39. The transition point between economic recession and recovery.
cost-push inflation
trough
law of supply
neutral good
40. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
law of demand
cyclical unemployment
complimentary goods
inelastic demand
41. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
marginal revenue
command economy
diminishing marginal utility
cost-push inflation
42. 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
direct relationship
money multiplier
real GDP
national income (NI)
43. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
LRAS curv
scarcity
market economy
import quotas
44. Anything that shows the economy as a whole.
price floor
recession
consumer good
economic aggregates
45. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.
consumer good
structural unemployment
scarcity
frictional unemployment
46. 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.
fiscal policy
demand curve
total revenue
change in quantity demanded
47. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
complimentary goods
law of demand
aggregate demand curve
48. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
demand curve shifts
demand curve
fiscal policy
49. Price control set when the market price is believed to be too high.
land
total revenue
price ceiling
consumer good
50. A Latin phrase meaning 'all things constant.'
required reserve ratio (RRR)
market demand curve
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
unit elastic