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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 willingness and ability of buyers to purchase a good or service.
demand
trade surplus
macroeconomics
hidden unemployment
2. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
import quotas
perfectly elastic
susbtitute goods
national economic accounts
3. Period in which a recession becomes prolonged and deep - involving high unemployment.
scarce
depression
individual choice
unemployed
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.
hidden unemployment
elastic demand
macroeconomics
market supply curve
5. A Latin phrase meaning 'all things constant.'
entrepreneurship
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
perfectly elastic
inflation
6. The proportion of each additional dollar of income that is saved.
scarce
Marginal Propensity to Save (MPS)
susbtitute goods
inelastic demand
7. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
unit elastic
inverse relationship
trade surplus
demand schedule
8. The lowest point of a business cycle
inferior good
recession
entrepreneurship
trough
9. A shift of the demand curve resulting from a change in consumer taste and preferences.
cost-push inflation
purchasing power
consumer taste and preferences
disposable personal income
10. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
scarce
market demand curve
consumer surplus
Phillips curve
11. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
demand
import quotas
unemployment rate
12. 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.
microeconomics
trough
total revenue
hidden unemployment
13. 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
consumer taste and preferences
Labor
demand curve
14. 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).
national income (NI)
expansionary fiscal policy
recession
law of demand
15. 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?
economic aggregates
demand elasticity
fiscal policy
oligopoly
16. The amount of money available to consumers to purchase goods and services.
purchasing power
stagflation
expenditure approach
demand elasticity
17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
susbtitute goods
changes in consumer expectations
inflation
movement along a demand curve
18. The payment that capital receives in the factor market.
trough
interest
resource
quantity exchanged
19. 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.
import quotas
normal good
structural unemployment
SRAS curve
20. 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.
consumer surplus
trough
Gross National Product
stagflation
21. The dollar value of all the goods and services sold to house holds.
consumption expenditures
aggregate demand curve
national income (NI)
opportunity cost
22. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
trade deficit
price floor
import quotas
unemployed
23. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
scarcity
import quotas
direct relationship
24. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
labor force
stagflation
susbtitute goods
entrepreneurship
25. The effort of workers.
Labor
required reserve ratio (RRR)
command economy
inferior good
26. (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
purchasing power
total revenue
SRAS curve
27. Anything that can be used to produce something else
aggregate demand curve
import quotas
nominal GDP
resource
28. The cost of something in terms of what one must give up to get it.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
trade surplus
price floor
opportunity cost
29. Real cost of an item is its opportunity cost.
demand
individual choice
susbtitute goods
opportunity cost
30. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
market economy
demand-pull inflation
market supply curve
price ceiling
31. 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.
purchasing power
depression
aggregate demand curve
marginal propensity to consume (MPC)
32. 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.
hyperinflation
inverse relationship
opportunity cost
law of supply
33. Long- run aggregate supply curve
aggregate demand curve
money multiplier
LRAS curv
Labor
34. 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.
inferior good
unit elastic
number of composition of consumers
Gross National Product
35. A special tax imposed on imported goods.
recession
depression
opportunity cost
tariff
36. The dollar value of production within a nation's border.
Gross Domestic Product
investment expenditures
command economy
total revenue
37. 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
resource
demand elasticity
frictional unemployment
38. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
elastic
scarce
market supply curve
number of composition of consumers
39. The sum of all the quantities of a good supplies by all producers at each price.
real GDP
market supply curve
opportunity cost
entrepreneurship
40. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
expenditure approach
consumer good
elastic demand
hyperinflation
41. Anything that shows the economy as a whole.
economic aggregates
demand
neutral good
LRAS curv
42. The transition point between economic recession and recovery.
unemployment rate
direct relationship
trough
resource
43. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
demand-pull inflation
cyclical unemployment
diminishing marginal utility
resource
44. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
Phillips curve
demand curve
trade surplus
market supply curve
45. Government officials make decisions about economy.
trough
command economy
structural unemployment
marginal revenue
46. Consumer income rise - demand will rise.
demand curve shifts
neutral good
LRAS curv
number of composition of consumers
47. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
stagflation
unemployment rate
susbtitute goods
disposable personal income
48. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.
marginal propensity to consume (MPC)
inelastic
labor force
demand curve shifts
49. The dollar value of goods and services sold to governments.
command economy
law of demand
government expenditures
demand curve shifts
50. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
opportunity cost
depreciation
purchasing power
consumer surplus