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






2. 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.






3. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.






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






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






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






7. 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).






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






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






10. 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






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






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






13. 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.






14. The dollar value of production within a nation's border.






15. Anything that can be used to produce something else






16. Significantly responsive to a change in price.






17. 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.






18. 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






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






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






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






22. Long- run aggregate supply curve






23. 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).






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






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






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






27. The effort of workers.






28. Consumer income rise - demand will rise.






29. 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.






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






31. The transition point between economic recession and recovery.






32. 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.






33. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






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






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






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






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






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






39. A special tax imposed on imported goods.






40. 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.






41. The amount of a good actually sold.






42. A bad depressingly prolonged recession in economic activity.






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






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






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






46. 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.






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






48. Short-run aggregate supply curve






49. (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.






50. 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).






Can you answer 50 questions in 15 minutes?



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