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






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






3. 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.






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






5. Consumer income rise - demand will rise.






6. A Latin phrase meaning 'all things constant.'






7. Government officials make decisions about economy.






8. 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.






9. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






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






11. 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.






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






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






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






15. The amount of money available to consumers to purchase goods and services.






16. Long- run aggregate supply curve






17. Significantly responsive to a change in price.






18. 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






19. The effort of workers.






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






21. 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.






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






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






24. 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.






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






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






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






28. The proportion of each additional dollar of income that will go toward consumption expenditures.






29. The lowest point of a business cycle






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






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






32. 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.






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






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






35. (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.






36. An increase in the price level






37. The income of households after taxes have been paid






38. The highest point of a business cycle.






39. Anything that shows the economy as a whole.






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






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






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






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






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






45. The amount of a good actually sold.






46. 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.






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






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






49. 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.






50. A bad depressingly prolonged recession in economic activity.