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






2. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






3. 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.






4. Consumer income rise - demand will rise.






5. A bad depressingly prolonged recession in economic activity.






6. The amount of a good actually sold.






7. The transition point between economic recession and recovery.






8. 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.






9. The sum of all the quantities of a good supplies by all producers at each price.






10. 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.






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






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






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






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






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






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






17. Anything that shows the economy as a whole.






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






19. 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.






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






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






22. Anything that can be used to produce something else






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






24. 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.






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






26. Not significantly responsive to changes in price.






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






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






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






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






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






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






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






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






35. The lowest point of a business cycle






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






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






38. 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.






39. 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.






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






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






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






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






44. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






45. Short-run aggregate supply curve






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






47. The study of scarcity and choice.






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






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






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.







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