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






2. 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.






3. Short-run aggregate supply curve






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






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






6. 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.






7. 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.






8. 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






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






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






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






12. 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).






13. 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.






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






15. The effort of workers.






16. Rising prices - across the board.






17. The highest point of a business cycle.






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






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






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






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






22. 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.






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






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






25. 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






26. 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.






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






28. A special tax imposed on imported goods.






29. The income of households after taxes have been paid






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






31. 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.






32. 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.






33. The transition point between economic recession and recovery.






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






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






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






37. 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.






38. Not significantly responsive to changes in price.






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






40. 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.






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






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






43. 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).






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






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






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






47. Resource is unavailable in sufficient amounts to satisfy various ways society wants to use it.






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






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






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







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests