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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 dollar value of production by a country's citizens.






2. A special tax imposed on imported goods.






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






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






5. 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.






6. The lowest point of a business cycle






7. 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






8. 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






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






10. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






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






13. 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).






14. 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.






15. Government officials make decisions about economy.






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






17. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






19. The transition point between economic recession and recovery.






20. An increase in the price level






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






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






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






24. 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






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






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






27. (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.






28. Consumer income rise - demand will rise.






29. The highest point of a business cycle.






30. 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






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






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






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






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






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






36. 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.






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






39. Short-run aggregate supply curve






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






41. 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).






42. 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.






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






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






45. Not significantly responsive to changes in price.






46. Decisions by individuals about what to do and what not to do.






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






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






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






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