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






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






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






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






5. Long- run aggregate supply curve






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






7. Consumer income rise - demand will rise.






8. The proportion of each additional dollar of income that is saved.






9. 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.






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






11. (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.






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






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






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






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






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






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






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






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






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






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






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






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






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






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






26. 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.






27. Not significantly responsive to changes in price.






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






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






30. The lowest point of a business cycle






31. 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).






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






33. 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.






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






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






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






37. Anything that can be used to produce something else






38. 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?






39. 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).






40. 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.






41. The study of scarcity and choice.






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






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






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






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






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






47. Short-run aggregate supply curve






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






49. 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.






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