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






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






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






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






5. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






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






7. 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.






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






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






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






11. An increase in the price level






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






13. The amount of a good actually sold.






14. The lowest point of a business cycle






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






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






17. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






18. 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.






19. Long- run aggregate supply curve






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






21. (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.






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






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






24. The income of households after taxes have been paid






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






26. Fluctuations in real GDP around the trend value; also called economic fluctuations.






27. 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.






28. 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.






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






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






31. The income earned by households and profits earned by firms after subtracting.






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






33. Not significantly responsive to changes in price.






34. 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).






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






36. A special tax imposed on imported goods.






37. Rising prices - across the board.






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






39. Short-run aggregate supply curve






40. The highest point of a business cycle.






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






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






43. 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.






44. 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






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






46. Anything that can be used to produce something else






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






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






49. Government officials make decisions about economy.






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