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






2. 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.






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






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






5. 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.






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






7. 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






8. A measure of the price level - or the average level of prices.






9. 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.






10. An increase in the price level






11. (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.






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






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






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






15. The dollar value of production within a nation's border.






16. Anything that shows the economy as a whole.






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






18. 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.






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






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






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






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






23. Anything that can be used to produce something else






24. 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.






25. The highest point of a business cycle.






26. 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






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






28. Long- run aggregate supply curve






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






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






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






32. 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.






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






34. The transition point between economic recession and recovery.






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






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






37. 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.






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






39. Significantly responsive to a change in price.






40. 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).






41. 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






42. Consumer income rise - demand will rise.






43. Rising prices - across the board.






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






45. 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.






46. 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.






47. 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.






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






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






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