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






2. 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






3. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






5. Short-run aggregate supply curve






6. The payment that capital receives in the factor market.






7. 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.






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






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






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






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






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






13. 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.






14. The study of scarcity and choice.






15. 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






16. The highest point of a business cycle.






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






18. The effort of workers.






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






20. 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.






21. Decisions by individuals about what to do and what not to do.






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






23. 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.






24. 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.






25. 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.






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






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






28. 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).






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






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






31. 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.






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






33. A special tax imposed on imported goods.






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






35. Anything that shows the economy as a whole.






36. 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.






37. An increase in the price level






38. The transition point between economic recession and recovery.






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






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






41. 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.






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






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






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






45. Rising prices - across the board.






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






47. 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






48. 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).






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






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






Can you answer 50 questions in 15 minutes?



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