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. Long- run aggregate supply curve






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






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






4. 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






5. The highest point of a business cycle.






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






7. 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.






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






9. 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.






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






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






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






13. Government officials make decisions about economy.






14. Short-run aggregate supply curve






15. The price of a domestic currency in terms of a foreign currency.






16. Decisions by individuals about what to do and what not to do.






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






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






20. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






21. 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.






22. The payment that capital receives in the factor market.






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






24. The lowest point of a business cycle






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






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






27. 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.






28. The effort of workers.






29. 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.






30. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






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






32. 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.






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






34. 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.






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






36. Anything that shows the economy as a whole.






37. The income of households after taxes have been paid






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






39. The dollar value of goods and services sold to governments.






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






41. The dollar value of production by a country's citizens.






42. An increase in the price level






43. 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.






44. A shift of the demand curve resulting from a change in consumer taste and preferences.






45. A special tax imposed on imported goods.






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






47. 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






48. 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?






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






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