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






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






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






4. 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).






5. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






6. Short-run aggregate supply curve






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






8. 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.






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






10. 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






11. Significantly responsive to a change in price.






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






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






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






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






16. The amount of money available to consumers to purchase goods and services.






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






18. 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.






19. 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






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






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






22. 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






23. The transition point between economic recession and recovery.






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






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






26. Not significantly responsive to changes in price.






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






28. A bad depressingly prolonged recession in economic activity.






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






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






31. Government officials make decisions about economy.






32. The income of households after taxes have been paid






33. 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.






34. 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?






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






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






37. 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.






38. A special tax imposed on imported goods.






39. The lowest point of a business cycle






40. 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.






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






42. 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.






43. 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).






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






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






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






47. 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.






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






49. Fluctuations in real GDP around the trend value; also called economic fluctuations.






50. An increase in the price level