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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. Anything that can be used to produce something else






2. The transition point between economic recession and recovery.






3. Consumer income rise - demand will rise.






4. 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.






5. 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.






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






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






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






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






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






11. The effort of workers.






12. 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.






13. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






14. An increase in the price level






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






16. 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






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






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






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






20. A bad depressingly prolonged recession in economic activity.






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






22. 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






23. The amount of a good actually sold.






24. 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.






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






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






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






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






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






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






31. Restrictions on the quantity of a good that can be imported






32. 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?






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






34. 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.






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






36. 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.






37. 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.






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






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






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






41. 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.






42. 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.






43. 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.






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






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






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






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






48. 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.






49. Rising prices - across the board.






50. Not significantly responsive to changes in price.







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