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. The effort of workers.






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






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






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






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






6. 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






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






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. 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






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






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






12. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






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






15. 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.






16. An increase in the price level






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






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






19. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






20. A bad depressingly prolonged recession in economic activity.






21. The amount of a good actually sold.






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






23. 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






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






25. (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.






26. 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.






27. 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.






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






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. 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.






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






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






33. 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?






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






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






36. 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).






37. Consumer income rise - demand will rise.






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






39. 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).






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






41. 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.






42. 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.






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






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






45. 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.






46. 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).






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






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






49. 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






50. Not significantly responsive to changes in price.