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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 branch of economics that deals with human behavior and choices as they relate to relatively small units--the individual - the business firm - a single market.






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






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






4. 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?






5. 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






6. Anything that shows the economy as a whole.






7. Anything that can be used to produce something else






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






9. Significantly responsive to a change in price.






10. 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.






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






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






13. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






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






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






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






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






19. 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.






20. 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.






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






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






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






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






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






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






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






28. A Latin phrase meaning 'all things constant.'






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






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






31. The highest point of a business cycle.






32. A special tax imposed on imported goods.






33. 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.






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






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






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






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






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






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






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






41. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






42. 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.






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






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






45. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






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






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






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






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






Can you answer 50 questions in 15 minutes?



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