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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. 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.






2. 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.






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






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






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






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






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






8. The amount of a good actually sold.






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






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






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






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






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






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






15. 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






16. The transition point between economic recession and recovery.






17. 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).






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






19. The effort of workers.






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






21. Government officials make decisions about economy.






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






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






24. 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.






25. 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






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






27. 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






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






29. Significantly responsive to a change in price.






30. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






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






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






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






34. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






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






36. 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






37. 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.






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






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






40. Consumer income rise - demand will rise.






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






42. 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.






43. 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.






44. 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.






45. 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.






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






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






48. 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.






49. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






50. Short-run aggregate supply curve







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