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






2. The study of scarcity and choice.






3. 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).






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






5. The lowest point of a business cycle






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






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






8. The transition point between economic recession and recovery.






9. 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.






10. 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.






11. An increase in the price level






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






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






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






15. 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.






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






17. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






19. The amount of money available to consumers to purchase goods and services.






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






21. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






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






23. 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






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






25. 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?






26. Government officials make decisions about economy.






27. Period in which a recession becomes prolonged and deep - involving high unemployment.






28. The highest point of a business cycle.






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






30. The proportion of each additional dollar of income that will go toward consumption expenditures.






31. The amount of a good actually sold.






32. 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).






33. 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






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






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






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






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






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






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






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






41. Anything that shows the economy as a whole.






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






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






44. Consumer income rise - demand will rise.






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






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






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






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






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






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