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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. The transition point between economic recession and recovery.






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






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






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






5. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






6. 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?






7. 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.






8. The income of households after taxes have been paid






9. 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.






10. An increase in the price level






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






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






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






14. Government officials make decisions about economy.






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






16. 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).






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






18. The lowest point of a business cycle






19. 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.






20. 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






21. 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.






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






23. 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






24. 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.






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






26. 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.






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






28. Consumer income rise - demand will rise.






29. 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.






30. 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.






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






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






33. The study of scarcity and choice.






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






35. 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






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






37. Not significantly responsive to changes in price.






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






39. Expenditure by businesses on plant and equipment and the change in business invention.






40. Anything that shows the economy as a whole.






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






42. (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.






43. Price control set when the market price is believed to be too low.






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






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






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






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






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






49. 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.






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