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






2. 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.






3. The transition point between economic recession and recovery.






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






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






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






7. 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.






8. Short-run aggregate supply curve






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






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






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






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






13. Anything that shows the economy as a whole.






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






15. 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).






16. A shift of the demand curve resulting from a change in consumer taste and preferences.






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






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






19. 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






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






21. 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.






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






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






24. 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.






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






26. 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.






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






28. 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






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






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






31. Anything that can be used to produce something else






32. 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.






33. 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.






34. Consumer income rise - demand will rise.






35. A measure of the price level - or the average level of prices.






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






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






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






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






40. The highest point of a business cycle.






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






42. 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?






43. The study of scarcity and choice.






44. 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.






45. Period in which a recession becomes prolonged and deep - involving high unemployment.






46. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






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






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






49. 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.






50. 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