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






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






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






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






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






7. The effort of workers.






8. Government officials make decisions about economy.






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






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






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






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






13. Rising prices - across the board.






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






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






16. 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.






17. 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.






18. 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).






19. 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






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






21. Significantly responsive to a change in price.






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






23. The proportion of each additional dollar of income that is saved.






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






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






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






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






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






29. Anything that shows the economy as a whole.






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






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






32. 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).






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






34. 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.






35. The amount of a good actually sold.






36. (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.






37. 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.






38. The study of scarcity and choice.






39. Consumer income rise - demand will rise.






40. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






41. 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.






42. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






43. 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






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






45. 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.






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






47. Long- run aggregate supply curve






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






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






50. Anything that can be used to produce something else






Can you answer 50 questions in 15 minutes?



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