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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. 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.






4. 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.






5. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






6. 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?






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






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






9. 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






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






11. Short-run aggregate supply curve






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






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






14. The amount of a good actually sold.






15. 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.






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






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






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






19. 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.






20. A bad depressingly prolonged recession in economic activity.






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






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






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






24. Anything that can be used to produce something else






25. A special tax imposed on imported goods.






26. The income of households after taxes have been paid






27. 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






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






29. Long- run aggregate supply curve






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






31. Consumer income rise - demand will rise.






32. Significantly responsive to a change in price.






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






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






35. 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.






36. The lowest point of a business cycle






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






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






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






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






41. 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.






42. 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.






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






44. 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).






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






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






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






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






49. 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.






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