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






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






3. (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.






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






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






6. Government officials make decisions about economy.






7. The highest point of a business cycle.






8. 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.






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






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






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






12. 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.






13. A bad depressingly prolonged recession in economic activity.






14. 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.






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






16. The amount of a good actually sold.






17. Long- run aggregate supply curve






18. 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.






19. The dollar value of goods and services sold to governments.






20. 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






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






22. An increase in the price level






23. 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.






24. 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.






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






26. The long-run pattern of growth and recession.






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






28. 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.






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






30. 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






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






32. 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).






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






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






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






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






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






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






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






40. The income of households after taxes have been paid






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






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






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






44. 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.






45. The income earned by households and profits earned by firms after subtracting.






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






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






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






49. 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.






50. 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.