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






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






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






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






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






6. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






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






8. 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.






9. 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






10. The highest point of a business cycle.






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






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






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






14. Consumer income rise - demand will rise.






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






16. 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.






17. Government officials make decisions about economy.






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






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






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






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






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






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






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






25. 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.






26. Long- run aggregate supply curve






27. An increase in the price level






28. When the percent of change in the quantity demanded equals the percent of change in price.






29. 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






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






31. 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.






32. Rising prices - across the board.






33. 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).






34. Not significantly responsive to changes in price.






35. Anything that shows the economy as a whole.






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






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






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






39. 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.






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






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






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






43. 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






44. A special tax imposed on imported goods.






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






46. 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.






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






48. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






50. Significantly responsive to a change in price.