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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 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).






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






3. Anything that shows the economy as a whole.






4. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






5. 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).






6. Government officials make decisions about economy.






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






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






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






10. 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.






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






12. 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.






13. 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.






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






15. The effort of workers.






16. Long- run aggregate supply curve






17. 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.






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






19. 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






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






21. 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.






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






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






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






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






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






27. Significantly responsive to a change in price.






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






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






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






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






32. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






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






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






35. 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.






36. (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.






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






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






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






40. 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.






41. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






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






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






45. A bad depressingly prolonged recession in economic activity.






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






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






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






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






50. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






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