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. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






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






4. 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.






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






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






7. 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.






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






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






10. Not significantly responsive to changes in price.






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






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






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






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






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






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






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






18. 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






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






20. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






22. 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






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






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






25. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






26. The highest point of a business cycle.






27. 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).






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






29. The cost of something in terms of what one must give up to get it.






30. Long- run aggregate supply curve






31. 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.






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






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






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






35. The lowest point of a business cycle






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






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






38. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






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






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






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






42. 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.






43. A special tax imposed on imported goods.






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






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






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






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






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






49. 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.






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