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






2. (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.






3. 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






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






5. 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.






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






7. A bad depressingly prolonged recession in economic activity.






8. 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).






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. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






11. Government officials make decisions about economy.






12. Anything that can be used to produce something else






13. The effort of workers.






14. 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.






15. Long- run aggregate supply curve






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






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






18. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






19. 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?






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






21. The highest point of a business cycle.






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






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






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






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






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






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






28. 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.






29. 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).






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






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






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






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. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






36. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






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






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






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






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






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






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






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






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






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






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






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






48. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






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