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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. An increase in the price level






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






3. 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.






4. Anything that shows the economy as a whole.






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






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






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






8. 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.






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






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






11. 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.






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






13. 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






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






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






16. 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).






17. Short-run aggregate supply curve






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






19. 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.






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






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






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. 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.






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






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






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






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






28. 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.






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






30. A special tax imposed on imported goods.






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






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






33. Consumer income rise - demand will rise.






34. The study of scarcity and choice.






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






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






37. 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.






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






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






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






41. 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.






42. 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?






43. 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.






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






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






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






47. The income of households after taxes have been paid






48. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






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






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