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






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






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






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






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






6. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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






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






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






10. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






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






12. The effort of workers.






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






14. Consumer income rise - demand will rise.






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






16. 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).






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






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






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






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






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






22. Not significantly responsive to changes in price.






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






24. (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.






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






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






27. Government officials make decisions about economy.






28. 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.






29. 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.






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






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






33. 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.






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






35. 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






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






37. A special tax imposed on imported goods.






38. 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.






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






40. 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.






41. The income of households after taxes have been paid






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






43. Significantly responsive to a change in price.






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






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






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






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






48. 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






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






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