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 deliberate control of the money supply by the Federal government.






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






3. 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.






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






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






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






7. The transition point between economic recession and recovery.






8. Government officials make decisions about economy.






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






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






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






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






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






15. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






16. 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?






17. A bad depressingly prolonged recession in economic activity.






18. 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.






19. (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.






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






21. 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.






22. 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.






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






24. 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.






25. 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).






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






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






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






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






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






31. Anything that can be used to produce something else






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






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






34. Rising prices - across the board.






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






36. Long- run aggregate supply curve






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






38. 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).






39. The sum of all the quantities of a good supplies by all producers at each price.






40. 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






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






42. The study of scarcity and choice.






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






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






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






46. 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






47. 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.






48. 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).






49. 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.






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