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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. Real cost of an item is its opportunity cost.
peak
structural unemployment
opportunity cost
Phillips curve
2. 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?
government expenditures
demand elasticity
consumer taste and preferences
required reserve ratio (RRR)
3. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
price index
hyperinflation
consumer income rise
rule of 70
4. Anything that shows the economy as a whole.
fiscal policy
economic aggregates
money multiplier
consumer income rise
5. A curve defining the relationship between real production and price level.
aggregate supply curve
consumer surplus
inferior good
hidden unemployment
6. 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
aggregate demand curve
nominal GDP
purchasing power
unemployment rate
7. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.
money multiplier
economics
inelastic demand
price index
8. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr
monopoly
diminishing marginal utility
real GDP
resource
9. 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.
consumption expenditures
aggregate demand curve
scarcity
purchasing power
10. The deliberate control of the money supply by the Federal government.
monetary policy
consumer good
consumption expenditures
money multiplier
11. The long-run pattern of growth and recession.
substitution effect
market supply curve
interest
business cycle
12. The payment that capital receives in the factor market.
national income (NI)
price index
cost-push inflation
interest
13. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.
purchasing power
law of demand
Phillips curve
demand curve shifts
14. The sum of all the quantities of a good supplies by all producers at each price.
recession
inelastic
real GDP
market supply curve
15. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
Marginal Propensity to Save (MPS)
expenditure approach
cost-push inflation
demand curve
16. Goods that go together - if price ? the demand for both that good and complimentary good ?.
direct relationship
unemployed
complimentary goods
individual choice
17. Rising prices - across the board.
expansionary fiscal policy
opportunity cost
inflation
structural unemployment
18. Government officials make decisions about economy.
diminishing marginal utility
frictional unemployment
price index
command economy
19. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
depression
trade surplus
elastic
depreciation
20. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
real GDP
marginal propensity to consume (MPC)
Phillips curve
depreciation
21. The dollar value of production within a nation's border.
substitution effect
unemployment rate
Gross Domestic Product
Labor
22. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
purchasing power
rule of 70
change in quantity demanded
susbtitute goods
23. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.
consumer surplus
price index
aggregate supply curve
expansion
24. A shift of the demand curve resulting from a change in consumer taste and preferences.
unit elastic
exchange rate
consumer taste and preferences
investment expenditures
25. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
trade deficit
scarce
opportunity cost
inferior good
26. 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.
consumer good
inferior good
neutral good
law of supply
27. 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.
depression
structural unemployment
labor force
susbtitute goods
28. The highest point of a business cycle.
interest
investment expenditures
depression
peak
29. Decisions by individuals about what to do and what not to do.
individual choice
expenditure approach
entrepreneurship
required reserve ratio (RRR)
30. The amount of a good actually sold.
expansionary monetary policy
trough
quantity exchanged
entrepreneurship
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
unemployed
hyperinflation
peak
trough
32. A Latin phrase meaning 'all things constant.'
fiscal policy
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
money multiplier
LRAS curv
33. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
demand curve shifts
inverse relationship
macroeconomics
expansionary fiscal policy
34. The amount of money available to consumers to purchase goods and services.
law of demand
trade surplus
inflation
purchasing power
35. 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.
national economic accounts
demand-pull inflation
expenditure approach
rule of 70
36. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
business cycle
scarcity
aggregate supply curve
oligopoly
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).
peak
unemployment rate
interest
hidden unemployment
38. The dollar value of goods and services sold to governments.
government expenditures
hidden unemployment
inverse relationship
hyperinflation
39. When the percent of change in the quantity demanded equals the percent of change in price.
demand-pull inflation
command economy
elastic demand
unit elastic
40. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.
unit elastic
nominal GDP
cyclical unemployment
diminishing marginal utility
41. The lowest point of a business cycle
depression
Gross Domestic Product
trough
macroeconomics
42. 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.
peak
frictional unemployment
individual choice
inferior good
43. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.
hyperinflation
market economy
money multiplier
command economy
44. 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.
resource
demand schedule
complimentary goods
market demand curve
45. 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.
Phillips curve
structural unemployment
Gross National Product
LRAS curv
46. An increase in the price level
change in quantity demanded
depression
quantity exchanged
inflation
47. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
number of composition of consumers
changes in consumer expectations
susbtitute goods
trough
48. Not significantly responsive to changes in price.
inelastic
consumer taste and preferences
market economy
entrepreneurship
49. A relationship between two factors in which the factors move in the same direction.
law of demand
rule of 70
direct relationship
total revenue
50. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
law of demand
exchange rate
purchasing power
labor force