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






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






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






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






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






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






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






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






9. Not significantly responsive to changes in price.






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






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






12. An increase in the price level






13. 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.






14. Long- run aggregate supply curve






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






16. The lowest point of a business cycle






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






18. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






19. 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.






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






21. 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.






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






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






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






25. Anything that shows the economy as a whole.






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






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






28. (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.






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






30. 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.






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






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






33. The deliberate control of the money supply by the Federal government.






34. The study of scarcity and choice.






35. 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).






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






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






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






39. Consumer income rise - demand will rise.






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






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






42. 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.






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






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






45. 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.






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






47. 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.






48. Rising prices - across the board.






49. Significantly responsive to a change in price.






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






Can you answer 50 questions in 15 minutes?



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