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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. 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.






2. 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.






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






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






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






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






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






8. 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






9. 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.






10. A bad depressingly prolonged recession in economic activity.






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






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






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






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






15. 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.






16. Government officials make decisions about economy.






17. 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.






18. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






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






21. The transition point between economic recession and recovery.






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






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






24. Significantly responsive to a change in price.






25. The effort of workers.






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






27. 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.






28. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






31. 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






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






33. 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.






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






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






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






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






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






39. 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).






40. 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.






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






42. Rising prices - across the board.






43. Short-run aggregate supply curve






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






45. Consumer income rise - demand will rise.






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






47. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






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






50. 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.






Can you answer 50 questions in 15 minutes?



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