Test your basic knowledge |

AP Macroeconomics

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. 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.






2. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






3. Anything that can be used to produce something else






4. Rising prices - across the board.






5. Consumer income rise - demand will rise.






6. The addition to total revenue created by selling one additional unit of ouput.






7. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






8. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






9. 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.






10. 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).






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.






12. 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.






13. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






14. Price control set when the market price is believed to be too high.






15. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






16. An increase in the price level






17. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






18. 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.






19. 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.






20. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






21. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






22. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






23. An industry structure in which there is only one seller for a product.






24. A curve defining the relationship between real production and price level.






25. The cost of something in terms of what one must give up to get it.






26. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






27. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






28. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






29. A country has a trade surplus if the value of its commodity exports exceeds the value of its commodity imports.






30. 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.






31. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






32. The income of households after taxes have been paid






33. The long-run pattern of growth and recession.






34. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






35. Restrictions on the quantity of a good that can be imported






36. The dollar value of production within a nation's border.






37. Expenditure by businesses on plant and equipment and the change in business invention.






38. 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.






39. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






40. The amount of money available to consumers to purchase goods and services.






41. A relationship between two factors in which the factors move in the same direction.






42. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






43. A special tax imposed on imported goods.






44. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






45. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






46. Long- run aggregate supply curve






47. 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






48. 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.






49. The willingness and ability of buyers to purchase a good or service.






50. 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).