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 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.






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






3. 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.






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






5. Long- run aggregate supply curve






6. 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.






7. 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.






8. 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.






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






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






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






12. The income of households after taxes have been paid






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






14. Anything that can be used to produce something else






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






16. 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.






17. Rising prices - across the board.






18. An increase in the price level






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






20. 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).






21. The effort of workers.






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






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






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






25. Not significantly responsive to changes in price.






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






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






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






29. Significantly responsive to a change in price.






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






31. 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






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






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






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






35. The study of scarcity and choice.






36. Anything that shows the economy as a whole.






37. 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).






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






39. 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






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






41. The branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






42. 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.






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






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






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






46. 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.






47. 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.






48. 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?






49. The lowest point of a business cycle






50. 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.