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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. 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.






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






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






4. Rising prices - across the board.






5. 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).






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






7. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






8. A bad depressingly prolonged recession in economic activity.






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






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






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






12. 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).






13. (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.






14. Price control set when the market price is believed to be too low.






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






16. 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.






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






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






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






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






21. 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.






22. An increase in the price level






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






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






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






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






27. 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.






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






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






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






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






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






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






34. A Latin phrase meaning 'all things constant.'






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






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






37. 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.






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






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






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






41. The study of scarcity and choice.






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






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






44. 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






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






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






47. The highest point of a business cycle.






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






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






50. The amount of a good actually sold.