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






2. The price of a domestic currency in terms of a foreign currency.






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






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






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






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






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






8. 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






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






10. 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).






11. 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.






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






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






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






15. The income of households after taxes have been paid






16. 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.






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






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






19. A bad depressingly prolonged recession in economic activity.






20. Rising prices - across the board.






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






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






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






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






25. 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.






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






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






28. 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.






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






30. 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






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






32. Not significantly responsive to changes in price.






33. Long- run aggregate supply curve






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






35. 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.






36. 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.






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






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






39. The transition point between economic recession and recovery.






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






41. A special tax imposed on imported goods.






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






43. 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.






44. 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.






45. The lowest point of a business cycle






46. Government officials make decisions about economy.






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 study of scarcity and choice.






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






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