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






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






3. 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.






4. 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).






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






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






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






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






9. 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.






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






11. The transition point between economic recession and recovery.






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






13. A special tax imposed on imported goods.






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






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






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






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






18. 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.






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






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






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






22. 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






23. 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.






24. 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).






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






26. 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






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






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






29. 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.






30. The income of households after taxes have been paid






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






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






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






34. The amount of a good actually sold.






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






36. 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.






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






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






39. 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.






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






41. Rising prices - across the board.






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 sum of all the quantities of a good supplies by all producers at each price.






44. 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






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






46. The highest point of a business cycle.






47. Long- run aggregate supply curve






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






49. 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






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







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