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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 shows the economy as a whole.






2. 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.






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






4. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






5. 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.






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






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






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






9. 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.






10. 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.






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






12. Long- run aggregate supply curve






13. 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






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






15. The transition point between economic recession and recovery.






16. 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.






17. 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.






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






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 dollar value of production by a country's citizens.






21. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






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






23. 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.






24. Significantly responsive to a change in price.






25. Not significantly responsive to changes in price.






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






27. Consumer income rise - demand will rise.






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






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






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






31. 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.






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






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






34. 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






35. 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.






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






37. 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?






38. 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).






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






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






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






42. 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.






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






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






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






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






47. A special tax imposed on imported goods.






48. 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






49. A bad depressingly prolonged recession in economic activity.






50. 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).







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