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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. The income of households after taxes have been paid
frictional unemployment
consumer taste and preferences
disposable personal income
susbtitute goods
2. Significantly responsive to a change in price.
depreciation
demand curve
marginal revenue
elastic
3. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
movement along a demand curve
change in quantity demanded
land
expansionary monetary policy
4. 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.
national economic accounts
hidden unemployment
required reserve ratio (RRR)
demand-pull inflation
5. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
unemployed
resource
total revenue
6. 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?
required reserve ratio (RRR)
demand elasticity
consumption expenditures
law of demand
7. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
complimentary goods
expansionary monetary policy
law of supply
A decrease in TR following an increase in price = elastic demand
8. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
complimentary goods
land
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
total revenue
9. The dollar value of production within a nation's border.
Gross Domestic Product
monopoly
depreciation
market economy
10. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
elastic
law of demand
required reserve ratio (RRR)
perfectly elastic
11. 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
perfectly elastic
land
structural unemployment
12. The lowest point of a business cycle
trough
interest
microeconomics
aggregate supply curve
13. Not significantly responsive to changes in price.
economics
market economy
inferior good
inelastic
14. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
monopoly
changes in consumer expectations
perfectly elastic
trade deficit
15. 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.
scarcity
consumer surplus
structural unemployment
entrepreneurship
16. The proportion of each additional dollar of income that is saved.
nominal GDP
number of composition of consumers
changes in consumer expectations
Marginal Propensity to Save (MPS)
17. The amount of money available to consumers to purchase goods and services.
structural unemployment
purchasing power
nominal GDP
trough
18. The transition point between economic recession and recovery.
expansionary monetary policy
government expenditures
diminishing marginal utility
trough
19. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
demand curve shifts
demand schedule
money multiplier
trade deficit
20. Price control set when the market price is believed to be too low.
marginal revenue
quantity exchanged
law of demand
price floor
21. 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
total revenue
perfectly elastic
direct relationship
22. Anything that can be used to produce something else
resource
total revenue
cost-push inflation
trough
23. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do
demand-pull inflation
law of demand
LRAS curv
trade deficit
24. The dollar value of goods and services sold to governments.
rule of 70
demand curve shifts
government expenditures
business cycles
25. 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.
consumer surplus
peak
elastic demand
business cycle
26. A measure of the price level - or the average level of prices.
normal good
hidden unemployment
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
price index
27. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
depression
neutral good
national economic accounts
oligopoly
28. A shift of the demand curve resulting from a change in consumer taste and preferences.
hidden unemployment
oligopoly
A decrease in TR following an increase in price = elastic demand
consumer taste and preferences
29. The amount of a good actually sold.
change in quantity demanded
perfectly elastic
quantity exchanged
Gross National Product
30. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.
stagflation
business cycle
substitution effect
elastic
31. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.
oligopoly
macroeconomics
change in quantity demanded
microeconomics
32. (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
resource
nominal GDP
entrepreneurship
33. Anything that shows the economy as a whole.
economic aggregates
demand
business cycle
real GDP
34. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
aggregate demand curve
trade deficit
Phillips curve
consumer surplus
35. 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.
aggregate demand curve
inelastic demand
unemployed
structural unemployment
36. 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
consumer income rise
direct relationship
individual choice
37. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
rule of 70
economics
required reserve ratio (RRR)
government expenditures
38. 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
movement along a demand curve
changes in consumer expectations
susbtitute goods
39. The long-run pattern of growth and recession.
business cycle
opportunity cost
price ceiling
resource
40. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
frictional unemployment
oligopoly
law of demand
41. Decisions by individuals about what to do and what not to do.
demand-pull inflation
macroeconomics
individual choice
demand
42. 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.
aggregate demand curve
oligopoly
trade deficit
required reserve ratio (RRR)
43. 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.
national economic accounts
simple money multiplier
Gross National Product
stagflation
44. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
stagflation
monopoly
inverse relationship
marginal revenue
45. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
cost-push inflation
scarcity
entrepreneurship
resource
46. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
government expenditures
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
market demand curve
normal good
47. The dollar value of production by a country's citizens.
frictional unemployment
direct relationship
Gross National Product
unemployment rate
48. 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.
rule of 70
aggregate demand curve
required reserve ratio (RRR)
normal good
49. The highest point of a business cycle.
oligopoly
SRAS curve
Phillips curve
peak
50. The effort of workers.
Labor
resource
substitution effect
SRAS curve