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 dollar value of goods and services sold to governments.






2. 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).






3. 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.






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






5. A bad depressingly prolonged recession in economic activity.






6. 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.






7. 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.






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






9. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






11. 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






12. 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.






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






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






15. 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.






16. 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.






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






18. Significantly responsive to a change in price.






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






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






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






22. The study of scarcity and choice.






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






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






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






26. Anything that can be used to produce something else






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






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






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






30. Rising prices - across the board.






31. The amount of a good actually sold.






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






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






34. An increase in the price level






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






36. 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?






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






38. A shift of the demand curve resulting from a change in consumer taste and preferences.






39. Anything that shows the economy as a whole.






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






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






42. 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






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






44. The highest point of a business cycle.






45. 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.






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






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






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






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






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