AP Macroeconomics Review Game

AP Macroeconomics Review Game

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Multiple Choice

Which result occurs when federal government expenditures are greater than the federal government's total receipts?

• reduced net exports
  
• increased excise taxes
  
• a federal budget surplus
  
• a federal budget deficit

Multiple Choice

What occurred between 2007 and 2008?

• Inflation
• Deflation
• Hyperinflation
• Consumer Price Index

Multiple Choice

What occurred between June and July of 2016?

• Inflation
• Hyperinflation
• Deflation
• Cost-push Inflation

Multiple Choice

A general rise in overall prices is called:

• Deflation
• Inflation
• Consumer Price Index
• Federal Reserve

Multiple Choice

What is the size of the Labor Force?

Unemployed (Looking for job) = 200

Retired = 5

Prison = 2

School (full time, not looking for job) = 10

Employed = 180

Unemployed (not looking for job) = 20

• 180

• 200

• 220

• 237

Multiple Choice

During a recession, which of the following is likely to occur?

• an increase in real wages
• an increase in production
• and increase in the GDP growth rate
• an increase in the unemployment rate

Multiple Choice

Which of the following would be counted as investment when calculating gross domestic product?

• The purchase of a used computer by an auto manufacturer
• The purchase of a share of IBM stock by an employee
• The construction of a new house
• The construction of roads by the government

Multiple Choice

Which of the following purchases is included in the calculation of gross domestic product?

• A used economics textbook from the bookstore
• 1,000 shares of stock in a computer firm
• A car produced in a foreign country
• New harvesting equipment for the farm

Multiple Choice

The value of exports of goods and services minus the value of imports of goods and services.

• Gross Domestic Product

• Net exports of goods and services

• Investment

• Nominal GDP

Multiple Choice

Items that firms in the United States produce and sell to the rest of the world

• Imports of goods and services

• Investment

• Nominal GDP

• Exports of goods and services

Multiple Choice

The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year.

• Real GDP

• Gross Domestic Product

• Business Cycle

• Nominal GDP

Multiple Choice

The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories

• Exports of goods and services

• Real GDP

• Investment

• Net exports of goods and services

Multiple Choice

The market value of all the final goods and services produced within a country in a given time period.

• Gross Domestic Product

• Net exports of goods and services

• Nominal GDP

• Real GDP

Multiple Choice

If the consumer price index (CPI) were 131 at year-end 1999 and 125 at year-end 1998, then inflation during 1999 was 

• zero; prices were stable during 1999
• 4.8 percent
• 6.0 percen
• 8.4 percent

Multiple Choice

Which of the following will most likely occur during the expansionary phase of the business cycle? 

• Real GDP rises and unemployment falls.
• Real GDP rises and unemployment rises. 
• Real GDP declines and inflation rises.
• Interest rates rise and the number of business failures rise. 

Multiple Choice

A graphical representation with unemployment on the horizontal axis and inflation on the vertical axis is known as: 

• Okun’s law
• Stagflation
• Phillips curve 
• Natural rate of unemployment and inflation 

Multiple Choice

Which of the following people would be considered structurally unemployed? 

• Unemployed auto assembly line factory worker during a recession.
• A high school student who mows lawns during the summer, but is out of work because it is winter
• An auto assembly line worker who quit her job to go back to school full-time to improve her job skills
• Unemployed auto assembly line factory worker who was replaced with a robot

Multiple Choice

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

Multiple Choice

Each individual on food stamps in Delaware can receive up to $194 a month.  Is this included in government spending?

• Yes - Government spending
• Yes - Consumer Spending
• No - Intermediate Goods
• No - Tranfer Payment

Multiple Choice

A Chik-fil-A milkshake today costs $2.75.  The Camden location sold 5,000,000 this year.  In 1961, it cost $0.80 and they sold 2,000,000.  How do I find the nominal GDP for Chik-fil-A milkshakes in 1961?

• 2.75 x 5,000,000
• .80 x 2,000,000
• .80 x 5,000,000
• 2.75 x 2,000,000

Multiple Choice

What type of GDP is calculated with the current year's prices?

• Nominal GDP
• Real GDP
• GDP per capita
• Base Year GDP

Multiple Choice

If the supply and demand curves intersect at a price of $20 then any price above that would result in a(n):

• shortage.
• equilibrium.
• increase in demand.
• surplus.

Multiple Choice

There is an increase in supply.  This will cause the equilibrium price to ______ & the equilibrium quantity to ______.

• decrease; increase
• decrease; decrease
• increase; increase
• increase; decrease

Multiple Choice

Workers agree to a 10% wage increase.  Everything else remaining constant, this will cause the _______ curve to shift _____. 

• demand; right
• demand; left
• supply; right
• supply; left

Multiple Choice

Oil is this type of scarce resource.

• Human Capital
• Land/Natural 
• Labor
• Physical Capital