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






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






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






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






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






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






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






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






9. Long- run aggregate supply curve






10. 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.






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






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






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






14. 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.






15. An increase in the price level






16. (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.






17. 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.






18. Anything that can be used to produce something else






19. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






21. 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.






22. 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






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






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






25. 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).






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






27. 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.






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






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






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






31. 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.






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






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






34. A bad depressingly prolonged recession in economic activity.






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






36. 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.






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






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






39. 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.






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






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






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






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






45. 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).






46. The amount of a good actually sold.






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






48. The lowest point of a business cycle






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






50. 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.