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






2. The study of scarcity and choice.






3. 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






4. Consumer income rise - demand will rise.






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






6. 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.






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






8. 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.






9. Significantly responsive to a change in price.






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






11. 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.






12. 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






13. The income of households after taxes have been paid






14. Government officials make decisions about economy.






15. 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






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






17. The proportion of each additional dollar of income that is saved.






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






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






20. Not significantly responsive to changes in price.






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






22. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






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






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






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






27. Anything that shows the economy as a whole.






28. Short-run aggregate supply curve






29. 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.






30. 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.






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






32. 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).






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






34. 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.






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






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






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






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






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






40. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






41. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






44. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






45. The highest point of a business cycle.






46. Long- run aggregate supply curve






47. 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.






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






49. Anything that can be used to produce something else






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