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






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






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






4. 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.






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






6. 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.






7. 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






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






9. 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.






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






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






12. 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






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






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






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






16. 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.






17. 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.






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






19. The income of households after taxes have been paid






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






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






22. 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).






23. Short-run aggregate supply curve






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






25. 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?






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






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






28. 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






29. 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.






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






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






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






33. Significantly responsive to a change in price.






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






35. 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.






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






37. Anything that can be used to produce something else






38. 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).






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






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






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






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






43. 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.






44. 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.






45. A bad depressingly prolonged recession in economic activity.






46. The transition point between economic recession and recovery.






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






48. The highest point of a business cycle.






49. 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.






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







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