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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. Anything that shows the economy as a whole.






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






3. The highest point of a business cycle.






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






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






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






7. Rising prices - across the board.






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






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






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






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






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






13. 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.






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






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






16. 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.






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






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






19. 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).






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






21. 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.






22. 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.






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






24. 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.






25. Significantly responsive to a change in price.






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






27. 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.






28. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






29. Not significantly responsive to changes in price.






30. Consumer income rise - demand will rise.






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






32. 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?






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






34. The transition point between economic recession and recovery.






35. 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.






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






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






38. 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.






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






40. The lowest point of a business cycle






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






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






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






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






45. A bad depressingly prolonged recession in economic activity.






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






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






48. The amount of a good actually sold.






49. 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.






50. 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.