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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 in the price level
SRAS curve
depression
movement along a demand curve
inflation
2. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.
nominal GDP
expansionary monetary policy
law of demand
total revenue
3. 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.
demand schedule
aggregate demand curve
individual choice
Phillips curve
4. Anything that shows the economy as a whole.
hidden unemployment
economic aggregates
trough
total revenue
5. The deliberate control of the money supply by the Federal government.
perfectly elastic
business cycle
monetary policy
movement along a demand curve
6. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.
price ceiling
Phillips curve
diminishing marginal utility
scarcity
7. A way of measuring the GDP by adding up all spending on final goods and services during a given year.
land
expenditure approach
law of demand
diminishing marginal utility
8. 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.
hyperinflation
SRAS curve
elastic demand
simple money multiplier
9. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.
aggregate supply curve
consumer income rise
government expenditures
opportunity cost
10. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.
consumer surplus
complimentary goods
nominal GDP
demand curve
11. 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
inflation
expenditure approach
SRAS curve
12. 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
command economy
scarce
SRAS curve
13. 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
consumer taste and preferences
trade deficit
law of supply
nominal GDP
14. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.
normal good
consumer surplus
change in quantity demanded
price floor
15. Fluctuations in real GDP around the trend value; also called economic fluctuations.
demand-pull inflation
inverse relationship
business cycles
price floor
16. 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).
consumer surplus
expansionary monetary policy
cost-push inflation
investment expenditures
17. Short-run aggregate supply curve
SRAS curve
law of supply
neutral good
inflation
18. Decisions by individuals about what to do and what not to do.
elastic demand
business cycles
expansion
individual choice
19. 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.
consumer income rise
simple money multiplier
trade deficit
structural unemployment
20. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.
land
demand elasticity
Marginal Propensity to Save (MPS)
market supply curve
21. Goods that compete with one another. If the price for one goes up the demand for the other will go up.
Ceteris Paribus (sayr-iht-us pahr-ih-bos)
scarcity
peak
susbtitute goods
22. 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.
complimentary goods
law of supply
government expenditures
unemployed
23. 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.
demand
susbtitute goods
inferior good
trough
24. Goods that go together - if price ? the demand for both that good and complimentary good ?.
complimentary goods
depression
SRAS curve
economics
25. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.
direct relationship
recession
law of supply
labor force
26. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.
money multiplier
business cycles
market economy
trade surplus
27. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.
direct relationship
simple money multiplier
demand curve
entrepreneurship
28. 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.
labor force
trade deficit
frictional unemployment
A decrease in TR following an increase in price = elastic demand
29. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.
fiscal policy
changes in consumer expectations
trade deficit
market equilibrium
30. A special tax imposed on imported goods.
entrepreneurship
fiscal policy
opportunity cost
tariff
31. The willingness and ability of buyers to purchase a good or service.
diminishing marginal utility
demand
aggregate demand curve
unemployment rate
32. The dollar value of production within a nation's border.
Gross Domestic Product
movement along a demand curve
nominal GDP
business cycles
33. Consumer income rise - demand will rise.
economics
neutral good
stagflation
depression
34. The study of scarcity and choice.
trade deficit
aggregate demand curve
command economy
economics
35. The proportion of each additional dollar of income that is saved.
opportunity cost
hidden unemployment
complimentary goods
Marginal Propensity to Save (MPS)
36. Period in which a recession becomes prolonged and deep - involving high unemployment.
depression
command economy
direct relationship
recession
37. 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.
demand curve shifts
demand-pull inflation
stagflation
Labor
38. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.
opportunity cost
expenditure approach
law of demand
individual choice
39. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.
depreciation
neutral good
law of supply
consumer taste and preferences
40. The income earned by households and profits earned by firms after subtracting.
number of composition of consumers
national income (NI)
marginal propensity to consume (MPC)
demand-pull inflation
41. 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.
demand curve shifts
change in quantity demanded
microeconomics
LRAS curv
42. 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 curve shifts
opportunity cost
inflation
demand elasticity
43. 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.
stagflation
depreciation
oligopoly
market supply curve
44. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.
aggregate demand curve
labor force
expansionary monetary policy
cyclical unemployment
45. The dollar value of all the goods and services sold to house holds.
monetary policy
consumption expenditures
expenditure approach
structural unemployment
46. The branch of economics that deals with human behavior and choices as they relate to the entire economy.
recession
aggregate supply curve
complimentary goods
macroeconomics
47. The income of households after taxes have been paid
consumer surplus
recession
disposable personal income
demand-pull inflation
48. 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
rule of 70
market demand curve
movement along a demand curve
monopoly
49. The price of a domestic currency in terms of a foreign currency.
normal good
real GDP
depression
exchange rate
50. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.
scarce
quantity exchanged
trough
demand elasticity