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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. An increase or decrease in consumer income will cause a shift in the Demand Curve.
consumer good
individual choice
consumer surplus
government expenditures
2. 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.
expansion
money multiplier
cost-push inflation
aggregate demand curve
3. Long- run aggregate supply curve
LRAS curv
monopoly
Marginal Propensity to Save (MPS)
depreciation
4. 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
susbtitute goods
depreciation
expenditure approach
5. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
business cycles
Phillips curve
depreciation
real GDP
6. 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.
expansionary fiscal policy
inelastic
demand curve shifts
diminishing marginal utility
7. When the percent of change in the quantity demanded equals the percent of change in price.
substitution effect
market economy
unit elastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
8. The willingness and ability of buyers to purchase a good or service.
nominal GDP
A decrease in TR following an increase in price = elastic demand
demand
inelastic
9. The addition to total revenue created by selling one additional unit of ouput.
oligopoly
economic aggregates
marginal revenue
neutral good
10. Anything that can be used to produce something else
disposable personal income
resource
trough
monetary policy
11. 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.
Gross National Product
structural unemployment
demand-pull inflation
trade deficit
12. 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
oligopoly
opportunity cost
consumer surplus
13. The effort of workers.
total revenue
market demand curve
consumer good
Labor
14. The dollar value of goods and services sold to governments.
elastic demand
change in quantity demanded
disposable personal income
government expenditures
15. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
total revenue
number of composition of consumers
demand curve
Labor
16. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
inflation
consumer income rise
depression
quantity exchanged
17. 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.
fiscal policy
perfectly elastic
exchange rate
import quotas
18. The payment that capital receives in the factor market.
marginal revenue
exchange rate
interest
consumption expenditures
19. 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
disposable personal income
unemployed
expansionary fiscal policy
money multiplier
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.
stagflation
Gross National Product
A decrease in TR following an increase in price = elastic demand
fiscal policy
21. 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.
Gross Domestic Product
elastic
Phillips curve
hidden unemployment
22. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
rule of 70
aggregate supply curve
diminishing marginal utility
LRAS curv
23. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
cyclical unemployment
quantity exchanged
inferior good
unit elastic
24. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
direct relationship
susbtitute goods
fiscal policy
consumer taste and preferences
25. 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.
demand schedule
direct relationship
inverse relationship
frictional unemployment
26. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
trough
fiscal policy
demand curve shifts
nominal GDP
27. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.
inverse relationship
complimentary goods
microeconomics
fiscal policy
28. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
trough
recession
investment expenditures
simple money multiplier
29. Price control set when the market price is believed to be too low.
opportunity cost
price floor
elastic
Gross National Product
30. 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
Phillips curve
macroeconomics
consumption expenditures
31. The deliberate control of the money supply by the Federal government.
law of demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
oligopoly
monetary policy
32. The cost of something in terms of what one must give up to get it.
opportunity cost
inflation
aggregate demand curve
trade surplus
33. Short-run aggregate supply curve
marginal revenue
consumer surplus
SRAS curve
resource
34. Restrictions on the quantity of a good that can be imported
import quotas
business cycles
perfectly elastic
cyclical unemployment
35. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
price floor
market supply curve
expenditure approach
money multiplier
36. 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.
change in quantity demanded
opportunity cost
market demand curve
Labor
37. (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.
required reserve ratio (RRR)
monetary policy
inelastic
number of composition of consumers
38. Not significantly responsive to changes in price.
simple money multiplier
economic aggregates
tariff
inelastic
39. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.
entrepreneurship
expansion
price floor
movement along a demand curve
40. 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.
rule of 70
Gross Domestic Product
number of composition of consumers
microeconomics
41. An increase in the price level
Labor
inflation
depression
inelastic demand
42. An industry structure in which there is only one seller for a product.
depreciation
monopoly
individual choice
macroeconomics
43. The proportion of each additional dollar of income that will go toward consumption expenditures.
scarce
substitution effect
marginal propensity to consume (MPC)
cost-push inflation
44. 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.
recession
consumer good
demand curve shifts
hyperinflation
45. Decisions by individuals about what to do and what not to do.
individual choice
expansionary fiscal policy
elastic
trough
46. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
quantity exchanged
price ceiling
market demand curve
47. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
Gross National Product
national economic accounts
normal good
government expenditures
48. 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
business cycle
resource
marginal propensity to consume (MPC)
expansionary monetary policy
49. The amount of money available to consumers to purchase goods and services.
purchasing power
demand curve
complimentary goods
recession
50. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
demand elasticity
consumer income rise
change in quantity demanded
entrepreneurship