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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 bad depressingly prolonged recession in economic activity.
elastic demand
depression
entrepreneurship
microeconomics
2. The sum of all the quantities of a good supplies by all producers at each price.
business cycles
market supply curve
number of composition of consumers
normal good
3. The willingness and ability of buyers to purchase a good or service.
Gross National Product
expenditure approach
demand
investment expenditures
4. 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.
opportunity cost
consumer income rise
perfectly elastic
monetary policy
5. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
depression
SRAS curve
entrepreneurship
required reserve ratio (RRR)
6. The dollar value of goods and services sold to governments.
real GDP
market supply curve
expansion
government expenditures
7. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
diminishing marginal utility
market equilibrium
stagflation
unemployment rate
8. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.
national economic accounts
monetary policy
exchange rate
total revenue
9. 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
substitution effect
economic aggregates
exchange rate
10. 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
national economic accounts
Gross National Product
unit elastic
11. The long-run pattern of growth and recession.
business cycle
demand curve
expansionary monetary policy
marginal revenue
12. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
price ceiling
expansion
consumer surplus
entrepreneurship
13. 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
substitution effect
trough
expansion
14. 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.
opportunity cost
real GDP
demand curve shifts
frictional unemployment
15. 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
aggregate supply curve
inferior good
expansionary monetary policy
business cycle
16. Long- run aggregate supply curve
susbtitute goods
LRAS curv
individual choice
command economy
17. Anything that shows the economy as a whole.
economic aggregates
law of demand
consumer surplus
unit elastic
18. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
depreciation
total revenue
tariff
elastic demand
19. Significantly responsive to a change in price.
exchange rate
entrepreneurship
consumption expenditures
elastic
20. 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).
market economy
unemployment rate
demand
depression
21. The transition point between economic recession and recovery.
trough
susbtitute goods
Marginal Propensity to Save (MPS)
depression
22. 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.
money multiplier
government expenditures
perfectly elastic
demand schedule
23. The dollar value of all the goods and services sold to house holds.
total revenue
perfectly elastic
consumption expenditures
national income (NI)
24. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
elastic demand
changes in consumer expectations
aggregate supply curve
25. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
demand curve
entrepreneurship
unemployed
demand schedule
26. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
neutral good
trough
market economy
inelastic demand
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.
substitution effect
hyperinflation
SRAS curve
depression
28. Price control set when the market price is believed to be too high.
direct relationship
command economy
A decrease in TR following an increase in price = elastic demand
price ceiling
29. 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.
individual choice
elastic demand
national income (NI)
inelastic demand
30. The amount of money available to consumers to purchase goods and services.
opportunity cost
purchasing power
consumer income rise
inflation
31. 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
consumer good
unemployed
Gross Domestic Product
depression
32. 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).
quantity exchanged
cost-push inflation
unit elastic
inflation
33. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
inferior good
price ceiling
national economic accounts
law of demand
34. The income of households after taxes have been paid
hidden unemployment
complimentary goods
expenditure approach
disposable personal income
35. The payment that capital receives in the factor market.
interest
trough
susbtitute goods
change in quantity demanded
36. Expenditure by businesses on plant and equipment and the change in business invention.
Phillips curve
investment expenditures
depression
entrepreneurship
37. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
change in quantity demanded
inelastic
susbtitute goods
marginal propensity to consume (MPC)
38. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
elastic
monopoly
inverse relationship
demand-pull inflation
39. When the percent of change in the quantity demanded equals the percent of change in price.
SRAS curve
entrepreneurship
law of demand
unit elastic
40. Consumer income rise - demand will rise.
neutral good
number of composition of consumers
individual choice
demand curve shifts
41. 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
trade surplus
individual choice
rule of 70
depreciation
42. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
unit elastic
economics
trade deficit
movement along a demand curve
43. The income earned by households and profits earned by firms after subtracting.
real GDP
national income (NI)
hidden unemployment
inferior good
44. The lowest point of a business cycle
trough
inflation
individual choice
consumer taste and preferences
45. The effort of workers.
perfectly elastic
Labor
unemployment rate
movement along a demand curve
46. 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
market economy
market equilibrium
price floor
47. 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?
consumer surplus
inflation
demand elasticity
A decrease in TR following an increase in price = elastic demand
48. A curve defining the relationship between real production and price level.
expansion
inelastic
aggregate supply curve
trough
49. Price control set when the market price is believed to be too low.
unemployed
total revenue
cost-push inflation
price floor
50. Decisions by individuals about what to do and what not to do.
individual choice
unemployment rate
demand curve shifts
total revenue