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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. The amount of a good actually sold.






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






3. 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.






4. Government officials make decisions about economy.






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






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






7. Anything that can be used to produce something else






8. Price control set when the market price is believed to be too low.






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






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






11. 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.






12. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






13. 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).






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






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






16. The highest point of a business cycle.






17. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






18. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






19. Long- run aggregate supply curve






20. 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






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






22. An increase in the price level






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






24. A measure of the price level - or the average level of prices.






25. 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






26. The study of scarcity and choice.






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






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






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 lowest point of a business cycle






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






32. The effort of workers.






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






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






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






36. 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.






37. 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






38. 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.






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. 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.






41. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






42. The addition to total revenue created by selling one additional unit of ouput.






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






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






45. Consumer income rise - demand will rise.






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






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






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






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






50. 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.