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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. Anything that can be used to produce something else
total revenue
trade surplus
tariff
resource
2. 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
business cycle
diminishing marginal utility
law of demand
tariff
3. Expenditure by businesses on plant and equipment and the change in business invention.
opportunity cost
cost-push inflation
unemployment rate
investment expenditures
4. A shift of the demand curve resulting from a change in consumer taste and preferences.
import quotas
Labor
consumer taste and preferences
cost-push inflation
5. The study of scarcity and choice.
SRAS curve
economics
price index
money multiplier
6. The dollar value of all the goods and services sold to house holds.
expansionary monetary policy
trade deficit
Marginal Propensity to Save (MPS)
consumption expenditures
7. When the percent of change in the quantity demanded equals the percent of change in price.
complimentary goods
land
unit elastic
tariff
8. The proportion of each additional dollar of income that is saved.
marginal propensity to consume (MPC)
expansion
Marginal Propensity to Save (MPS)
consumption expenditures
9. 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
expansionary monetary policy
substitution effect
consumption expenditures
10. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
consumer income rise
expansionary monetary policy
consumer surplus
real GDP
11. 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.
law of supply
national economic accounts
quantity exchanged
changes in consumer expectations
12. 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.
hidden unemployment
inflation
demand curve shifts
SRAS curve
13. The income earned by households and profits earned by firms after subtracting.
command economy
unemployment rate
import quotas
national income (NI)
14. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
changes in consumer expectations
unemployed
marginal propensity to consume (MPC)
depreciation
15. The long-run pattern of growth and recession.
business cycle
monetary policy
price ceiling
recession
16. 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.
peak
depression
demand schedule
expenditure approach
17. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.
Labor
complimentary goods
consumer income rise
substitution effect
18. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.
normal good
labor force
required reserve ratio (RRR)
consumer surplus
19. The amount of money available to consumers to purchase goods and services.
purchasing power
expenditure approach
A decrease in TR following an increase in price = elastic demand
quantity exchanged
20. The transition point between economic recession and recovery.
trough
scarcity
entrepreneurship
expansionary monetary 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.
neutral good
hidden unemployment
quantity exchanged
scarce
22. The dollar value of production within a nation's border.
trough
Gross Domestic Product
price index
demand curve
23. Not significantly responsive to changes in price.
demand schedule
macroeconomics
money multiplier
inelastic
24. Consumer income rise - demand will rise.
consumer surplus
neutral good
entrepreneurship
expenditure approach
25. When Price and TR move in opposite directions..... P?/TR? or P?/TR?
import quotas
fiscal policy
opportunity cost
A decrease in TR following an increase in price = elastic demand
26. The lowest point of a business cycle
consumer income rise
trough
interest
national economic accounts
27. The amount of a good actually sold.
demand curve
national income (NI)
quantity exchanged
government expenditures
28. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
LRAS curv
scarcity
law of demand
demand-pull inflation
29. A Latin phrase meaning 'all things constant.'
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
change in quantity demanded
Marginal Propensity to Save (MPS)
entrepreneurship
30. 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
national income (NI)
simple money multiplier
macroeconomics
31. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.
Labor
unit elastic
consumer surplus
economics
32. 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.
monetary policy
aggregate supply curve
demand-pull inflation
number of composition of consumers
33. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
rule of 70
structural unemployment
market economy
macroeconomics
34. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.
stagflation
fiscal policy
law of demand
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
35. A curve defining the relationship between real production and price level.
entrepreneurship
aggregate supply curve
labor force
real GDP
36. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
recession
inflation
disposable personal income
normal good
37. 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).
microeconomics
Gross National Product
number of composition of consumers
unemployment rate
38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
consumption expenditures
entrepreneurship
hyperinflation
depression
39. The sum of all the quantities of a good supplies by all producers at each price.
market supply curve
opportunity cost
change in quantity demanded
cost-push inflation
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.
inflation
national economic accounts
microeconomics
structural unemployment
41. Anything that shows the economy as a whole.
expansionary monetary policy
economic aggregates
normal good
Phillips curve
42. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
expenditure approach
normal good
diminishing marginal utility
price index
43. 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?
demand elasticity
interest
depression
depression
44. 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
susbtitute goods
consumer good
nominal GDP
depression
45. 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.
trade deficit
demand curve shifts
perfectly elastic
Gross Domestic Product
46. A relationship between two factors in which the factors move in the same direction.
monopoly
direct relationship
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
exchange rate
47. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
susbtitute goods
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
A decrease in TR following an increase in price = elastic demand
scarce
48. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.
fiscal policy
trade deficit
peak
microeconomics
49. 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
diminishing marginal utility
Labor
depression
50. 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.
A decrease in TR following an increase in price = elastic demand
frictional unemployment
interest
inelastic