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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. 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






2. The amount of a good actually sold.






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






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






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






6. 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.






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






8. 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.






9. The highest point of a business cycle.






10. 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.






11. Short-run aggregate supply curve






12. (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.






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






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






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






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






17. 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






18. Government officials make decisions about economy.






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






20. 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.






21. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






23. Anything that shows the economy as a whole.






24. 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.






25. 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).






26. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






27. 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.






28. 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.






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






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






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






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






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






34. Long- run aggregate supply curve






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






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






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






38. 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.






39. Price control set when the market price is believed to be too high.






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






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






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






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






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






45. The effort of workers.






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






47. The income of households after taxes have been paid






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






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






50. A bad depressingly prolonged recession in economic activity.