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. (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.






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






3. 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.






4. 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).






5. 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.






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






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. The transition point between economic recession and recovery.






9. The income of households after taxes have been paid






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






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






12. The highest point of a business cycle.






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






14. 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.






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






16. 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






17. The amount of a good actually sold.






18. Significantly responsive to a change in price.






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






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






21. Not significantly responsive to changes in price.






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






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






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






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






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






27. Long- run aggregate supply curve






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






30. 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).






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






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






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






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






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






36. An increase in the price level






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






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






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






40. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






41. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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






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






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






45. Rising prices - across the board.






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






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






48. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






49. 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.






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