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 & whose skills don't match the requirements of available jobs.






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






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






4. The highest point of a business cycle.






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






6. 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.






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






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






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






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






11. 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.






12. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






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






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






16. (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.






17. The lowest point of a business cycle






18. A special tax imposed on imported goods.






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






20. 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






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






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






23. The effort of workers.






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






25. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






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






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






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






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






30. 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






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






32. Anything that can be used to produce something else






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






34. 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






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






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






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






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






39. Short-run aggregate supply curve






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






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






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






43. 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.






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






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






46. 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.






47. The amount of a good actually sold.






48. 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).






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






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