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






2. A bad depressingly prolonged recession in economic activity.






3. 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






4. 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.






5. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






6. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






7. Anything that shows the economy as a whole.






8. Real cost of an item is its opportunity cost.






9. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






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






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






12. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






13. 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.






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






15. 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.






16. The lowest point of a business cycle






17. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






18. Period in which a recession becomes prolonged and deep - involving high unemployment.






19. 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.






20. 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).






21. 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).






22. The income of households after taxes have been paid






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






24. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






25. An increase in the price level






26. 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.






27. Goods that go together - if price ? the demand for both that good and complimentary good ?.






28. Long- run aggregate supply curve






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






30. Price control set when the market price is believed to be too low.






31. 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.






32. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






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






34. 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






35. Government officials make decisions about economy.






36. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






38. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






39. 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.






40. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






41. The dollar value of all the goods and services sold to house holds.






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






43. 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.






44. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






45. 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






46. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






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






49. The deliberate control of the money supply by the Federal government.






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