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






2. 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.






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






4. 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.






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






6. 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.






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






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






9. Significantly responsive to a change in price.






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






11. Consumer income rise - demand will rise.






12. 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.






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






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






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






16. The transition point between economic recession and recovery.






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






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






19. 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.






20. The effort of workers.






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






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






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






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






25. 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.






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






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






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






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






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






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






32. 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






33. 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.






34. Anything that shows the economy as a whole.






35. 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).






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






37. Rising prices - across the board.






38. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






40. 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






41. 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






42. 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.






43. 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?






44. 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.






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






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






47. A bad depressingly prolonged recession in economic activity.






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






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






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







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