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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. 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.






2. A bad depressingly prolonged recession in economic activity.






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






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






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






6. Consumer income rise - demand will rise.






7. Short-run aggregate supply curve






8. An increase in the price level






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






10. Anything that shows the economy as a whole.






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






12. Not significantly responsive to changes in price.






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






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






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






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






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






18. 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.






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






20. Government officials make decisions about economy.






21. 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.






22. 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.






23. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






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






25. 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.






26. Significantly responsive to a change in price.






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






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






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






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






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






32. 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.






33. 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).






34. 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






35. 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.






36. A special tax imposed on imported goods.






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






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






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






40. (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.






41. The study of scarcity and choice.






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






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






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






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






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






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






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






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






50. 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.







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