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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 graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






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






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






4. 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.






5. 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.






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






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






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






9. Anything that shows the economy as a whole.






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






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






12. 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.






13. The study of scarcity and choice.






14. 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.






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






16. Short-run aggregate supply curve






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






18. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






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






20. 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.






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






22. A special tax imposed on imported goods.






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






24. 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.






25. Rising prices - across the board.






26. 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).






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






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






29. Anything that can be used to produce something else






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






31. A bad depressingly prolonged recession in economic activity.






32. 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






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






34. 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.






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






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






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






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






39. 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.






40. Government officials make decisions about economy.






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






42. 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.






43. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






45. Long- run aggregate supply curve






46. 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.






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






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






49. The income of households after taxes have been paid






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







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