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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. 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.






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






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






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






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






6. A bad depressingly prolonged recession in economic activity.






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






8. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






9. The lowest point of a business cycle






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






11. 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.






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






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






14. 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.






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






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






17. A special tax imposed on imported goods.






18. (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.






19. 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.






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






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






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






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






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






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






26. Anything that shows the economy as a whole.






27. Anything that can be used to produce something else






28. The study of scarcity and choice.






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






30. 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.






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






32. 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






33. 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.






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






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






36. The transition point between economic recession and recovery.






37. A measure of the price level - or the average level of prices.






38. 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






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






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






41. Long- run aggregate supply curve






42. The deliberate control of the money supply by the Federal government.






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






44. 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.






45. 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.






46. 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).






47. 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.






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






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






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







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