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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. Consumer income rise - demand will rise.
money multiplier
price ceiling
exchange rate
neutral good
2. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.
real GDP
price ceiling
depression
market equilibrium
3. When the percent of change in the quantity demanded equals the percent of change in price.
Phillips curve
market supply curve
substitution effect
unit elastic
4. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
susbtitute goods
expansionary monetary policy
economic aggregates
recession
5. The payment that capital receives in the factor market.
government expenditures
tariff
interest
frictional unemployment
6. A bad depressingly prolonged recession in economic activity.
business cycle
market equilibrium
depression
depreciation
7. 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.
perfectly elastic
change in quantity demanded
Phillips curve
macroeconomics
8. 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
business cycles
import quotas
opportunity cost
9. The willingness and ability of buyers to purchase a good or service.
market demand curve
Gross National Product
fiscal policy
demand
10. 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.
direct relationship
scarce
demand curve shifts
opportunity cost
11. The proportion of each additional dollar of income that will go toward consumption expenditures.
marginal propensity to consume (MPC)
frictional unemployment
marginal revenue
tariff
12. Price control set when the market price is believed to be too high.
aggregate demand curve
price floor
price ceiling
tariff
13. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
changes in consumer expectations
demand curve
price index
entrepreneurship
14. The amount of a good actually sold.
demand
total revenue
inelastic demand
quantity exchanged
15. The proportion of each additional dollar of income that is saved.
depression
demand schedule
Marginal Propensity to Save (MPS)
unemployment rate
16. Anything that shows the economy as a whole.
market demand curve
unit elastic
economic aggregates
normal good
17. Significantly responsive to a change in price.
elastic demand
inflation
investment expenditures
elastic
18. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
quantity exchanged
individual choice
entrepreneurship
monetary policy
19. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
perfectly elastic
disposable personal income
cyclical unemployment
consumer taste and preferences
20. Fluctuations in real GDP around the trend value; also called economic fluctuations.
business cycles
demand-pull inflation
consumer surplus
unemployment rate
21. 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).
peak
expansionary fiscal policy
entrepreneurship
real GDP
22. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
aggregate demand curve
inverse relationship
inferior good
expenditure approach
23. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).
inferior good
elastic
market demand curve
inverse relationship
24. The long-run pattern of growth and recession.
Gross Domestic Product
business cycle
market economy
fiscal policy
25. 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.
price ceiling
oligopoly
microeconomics
import quotas
26. The highest point of a business cycle.
peak
disposable personal income
demand schedule
Gross Domestic Product
27. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
price ceiling
simple money multiplier
scarce
movement along a demand curve
28. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
command economy
structural unemployment
depreciation
change in quantity demanded
29. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
market demand curve
oligopoly
susbtitute goods
simple money multiplier
30. Decisions by individuals about what to do and what not to do.
individual choice
structural unemployment
trough
disposable personal income
31. The amount of money available to consumers to purchase goods and services.
entrepreneurship
purchasing power
neutral good
Labor
32. Rising prices - across the board.
law of demand
fiscal policy
inflation
scarce
33. Price control set when the market price is believed to be too low.
substitution effect
price floor
expansion
investment expenditures
34. The income earned by households and profits earned by firms after subtracting.
national income (NI)
normal good
trade surplus
demand curve shifts
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.
consumer good
inelastic demand
demand elasticity
perfectly elastic
36. The addition to total revenue created by selling one additional unit of ouput.
depression
market equilibrium
marginal revenue
direct relationship
37. An industry structure in which there is only one seller for a product.
real GDP
peak
monopoly
individual choice
38. The dollar value of all the goods and services sold to house holds.
expansion
consumption expenditures
depression
hyperinflation
39. 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.
scarce
change in quantity demanded
perfectly elastic
complimentary goods
40. Short-run aggregate supply curve
inelastic demand
scarcity
SRAS curve
required reserve ratio (RRR)
41. Expenditure by businesses on plant and equipment and the change in business invention.
recession
oligopoly
investment expenditures
hidden unemployment
42. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
land
SRAS curve
elastic
43. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
consumer good
expansion
hidden unemployment
cost-push inflation
44. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
opportunity cost
demand
recession
45. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
unemployed
consumer good
depreciation
macroeconomics
46. A curve defining the relationship between real production and price level.
resource
monopoly
disposable personal income
aggregate supply curve
47. 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.
import quotas
demand schedule
monopoly
trough
48. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
demand
required reserve ratio (RRR)
structural unemployment
hyperinflation
49. A shift of the demand curve resulting from a change in consumer taste and preferences.
consumer taste and preferences
monetary policy
susbtitute goods
inelastic
50. 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.
Gross Domestic Product
law of supply
inelastic
Ceteris Paribus (sayr-iht-us pahr-ih-bos)