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






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






3. 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.






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






5. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






6. 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).






7. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






8. Anything that shows the economy as a whole.






9. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






11. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






14. 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






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






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






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






18. The study of scarcity and choice.






19. 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.






20. 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.






21. A bad depressingly prolonged recession in economic activity.






22. 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.






23. 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






24. 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.






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






26. Not significantly responsive to changes in price.






27. The highest point of a business cycle.






28. 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.






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






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






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






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






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






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






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






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






37. 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.






38. 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.






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






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






41. Consumer income rise - demand will rise.






42. Government officials make decisions about economy.






43. 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).






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






45. Rising prices - across the board.






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






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






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






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






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







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