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






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






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






4. 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.






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






6. A bad depressingly prolonged recession in economic activity.






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






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






9. 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.






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






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






12. 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.






13. Rising prices - across the board.






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






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






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






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






18. A special tax imposed on imported goods.






19. 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.






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. 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.






22. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






23. Significantly responsive to a change in price.






24. The amount of a good actually sold.






25. 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?






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






27. Long- run aggregate supply curve






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






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






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






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






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






33. 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






34. The study of scarcity and choice.






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






36. 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.






37. Anything that shows the economy as a whole.






38. The effort of workers.






39. The highest point of a business cycle.






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






41. 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






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






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






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






45. 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.






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






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






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






49. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






50. (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.