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






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






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






4. 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.






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






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






7. 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.






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






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






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






11. Government officials make decisions about economy.






12. 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.






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






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






15. (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.






16. Anything that can be used to produce something else






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






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






19. Not significantly responsive to changes in price.






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






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






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






23. 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.






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






25. 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.






26. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






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






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






29. 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






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






31. 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.






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






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






34. 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.






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






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






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






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






39. Long- run aggregate supply curve






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






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






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






43. Short-run aggregate supply curve






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






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






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






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






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






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






50. The highest point of a business cycle.