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 civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






2. Restrictions on the quantity of a good that can be imported






3. Long- run aggregate supply curve






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






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






6. 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.






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






8. 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.






9. Significantly responsive to a change in price.






10. 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.






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






12. The transition point between economic recession and recovery.






13. A bad depressingly prolonged recession in economic activity.






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






15. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






17. 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.






18. 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.






19. A special tax imposed on imported goods.






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






21. 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






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






23. Consumer income rise - demand will rise.






24. 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






25. 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.






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






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






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






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






30. 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.






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






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






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






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






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






36. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






37. 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).






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






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






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






41. The effort of workers.






42. 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






43. Anything that can be used to produce something else






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






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






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






47. 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.






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






49. The amount of a good actually sold.






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