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






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






3. 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.






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






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






6. Period in which a recession becomes prolonged and deep - involving high unemployment.






7. Rising prices - across the board.






8. 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.






9. A bad depressingly prolonged recession in economic activity.






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






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






13. The amount of a good actually sold.






14. Short-run aggregate supply curve






15. 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






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






17. 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.






18. 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.






19. The dollar value of all the goods and services sold to house holds.






20. 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.






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






22. The highest point of a business cycle.






23. The effort of workers.






24. Not significantly responsive to changes in price.






25. Goods that go together - if price ? the demand for both that good and complimentary good ?.






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






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






28. 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.






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






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






31. The study of scarcity and choice.






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






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






34. The transition point between economic recession and recovery.






35. 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?






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






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






38. 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.






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






40. Consumer income rise - demand will rise.






41. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






42. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






43. 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






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






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






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






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






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






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