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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. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






3. 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.






4. 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.






5. The lowest point of a business cycle






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






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






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






9. The highest point of a business cycle.






10. 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






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






12. 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.






13. 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?






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






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






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






17. 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).






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






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






20. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






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






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






24. 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).






25. 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.






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






27. 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.






28. The study of scarcity and choice.






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






30. The effort of workers.






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






32. 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.






33. 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).






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






35. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






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






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






38. Anything that shows the economy as a whole.






39. Consumer income rise - demand will rise.






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






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






42. A bad depressingly prolonged recession in economic activity.






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






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






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






46. 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.






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






48. Significantly responsive to a change in price.






49. (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.






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