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AP Macroeconomics

Subjects : economics, ap
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. A curve defining the relationship between real production and price level.

2. Government officials make decisions about economy.

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

4. Significantly responsive to a change in price.

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

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

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

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

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

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

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

12. A special tax imposed on imported goods.

13. An increase in the price level

14. The payment that capital receives in the factor market.

15. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.

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

17. The transition point between economic recession and recovery.

18. Long- run aggregate supply curve

19. A bad depressingly prolonged recession in economic activity.

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

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

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

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

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

25. The income of households after taxes have been paid

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

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

28. Anything that shows the economy as a whole.

29. 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

30. Rising prices - across the board.

31. The amount of a good actually sold.

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

33. The effort of workers.

34. 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.

35. 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

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

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

38. The lowest point of a business cycle

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

40. 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.

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

42. The study of scarcity and choice.

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

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

45. 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.

46. Not significantly responsive to changes in price.

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

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

49. 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.

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