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






2. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






3. 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.






4. 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.






5. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






7. Short-run aggregate supply curve






8. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






10. 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.






11. A Latin phrase meaning 'all things constant.'






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






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






14. The amount of a good actually sold.






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






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






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






18. When the percent of change in the quantity demanded equals the percent of change in price.






19. Consumer income rise - demand will rise.






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






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






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






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






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






25. 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.






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






27. 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.






28. The study of scarcity and choice.






29. A bad depressingly prolonged recession in economic activity.






30. 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.






31. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






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






33. Significantly responsive to a change in price.






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






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






36. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






37. The sum of all the quantities of a good supplies by all producers at each price.






38. 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






39. The income of households after taxes have been paid






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






41. Not significantly responsive to changes in price.






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 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.






44. 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






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






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






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






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






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






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