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






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






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






4. The income of households after taxes have been paid






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






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






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






8. 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.






9. Consumer income rise - demand will rise.






10. 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.






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






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






13. 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?






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






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






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






17. 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).






18. The study of scarcity and choice.






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






20. The lowest point of a business cycle






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






22. Anything that shows the economy as a whole.






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






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






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






26. The transition point between economic recession and recovery.






27. 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.






28. Government officials make decisions about economy.






29. 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.






30. 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






31. 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






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






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






34. 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.






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






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






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






38. The cost of something in terms of what one must give up to get it.






39. 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






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






41. The effort of workers.






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






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






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






45. Significantly responsive to a change in price.






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






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






48. 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.






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






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