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. Government officials make decisions about economy.






2. 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






3. 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






4. The lowest point of a business cycle






5. 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.






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






7. The highest point of a business cycle.






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






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






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






11. A special tax imposed on imported goods.






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






13. 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.






14. The effort of workers.






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






16. 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.






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






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






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






20. The transition point between economic recession and recovery.






21. 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.






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






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






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






25. 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.






26. 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.






27. 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.






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






29. The study of scarcity and choice.






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






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






32. The income of households after taxes have been paid






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






34. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






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






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






38. Not significantly responsive to changes in price.






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






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






41. 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






42. 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.






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






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






45. 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.






46. (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.






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






48. 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.






49. A bad depressingly prolonged recession in economic activity.






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