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. 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.






3. An increase in the price level






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






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






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






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






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






9. 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






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






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






12. 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.






13. 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






14. 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.






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






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






17. 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






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






19. Fluctuations in real GDP around the trend value; also called economic fluctuations.






20. The study of scarcity and choice.






21. 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).






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






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






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






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






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






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






28. 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.






29. The lowest point of a business cycle






30. Not significantly responsive to changes in price.






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






32. 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.






33. Short-run aggregate supply curve






34. Rising prices - across the board.






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






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






37. Decisions by individuals about what to do and what not to do.






38. The effort of workers.






39. The payment that capital receives in the factor market.






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






41. Consumer income rise - demand will rise.






42. The income of households after taxes have been paid






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






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






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






46. The long-run pattern of growth and recession.






47. Anything that can be used to produce something else






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






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






50. 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.