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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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 conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






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






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






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






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






8. 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.






9. Consumer income rise - demand will rise.






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






11. Anything that can be used to produce something else






12. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






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






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






15. The study of scarcity and choice.






16. The cost of something in terms of what one must give up to get it.






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






18. The lowest point of a business cycle






19. A special tax imposed on imported goods.






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






21. 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).






22. 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.






23. 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.






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






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






26. The income of households after taxes have been paid






27. 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.






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






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






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






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






32. 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.






33. 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






34. 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






35. A bad depressingly prolonged recession in economic activity.






36. Rising prices - across the board.






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






38. 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?






39. 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.






40. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






41. 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.






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






44. The long-run pattern of growth and recession.






45. 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.






46. 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






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






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






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






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







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