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






2. 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).






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






4. The lowest point of a business cycle






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






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






7. 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.






8. The study of scarcity and choice.






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






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






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






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






13. A bad depressingly prolonged recession in economic activity.






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






15. The highest point of a business cycle.






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






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






18. 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).






19. A special tax imposed on imported goods.






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






21. Consumer income rise - demand will rise.






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






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






24. 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






25. 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.






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






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






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






29. 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.






30. 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.






31. Anything that can be used to produce something else






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






33. 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.






34. Anything that shows the economy as a whole.






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






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






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






39. 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.






40. The income of households after taxes have been paid






41. 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.






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






43. An increase in the price level






44. Significantly responsive to a change in price.






45. Short-run aggregate supply curve






46. 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






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






48. 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.






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.