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






2. 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






3. The amount of a good actually sold.






4. 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.






5. Not significantly responsive to changes in price.






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






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






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






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






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






11. (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.






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






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






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






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






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






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






18. 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.






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






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






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






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






23. Short-run aggregate supply curve






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






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






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






27. Anything that shows the economy as a whole.






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






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






30. 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






31. The highest point of a business cycle.






32. The lowest point of a business cycle






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






34. Government officials make decisions about economy.






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






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






37. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






38. Significantly responsive to a change in price.






39. 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.






40. A bad depressingly prolonged recession in economic activity.






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






42. 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.






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






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






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






46. Anything that can be used to produce something else






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






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. 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.






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