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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. Significantly responsive to a change in price.






2. The amount of a good actually sold.






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






4. 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.






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






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






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






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






9. A special tax imposed on imported goods.






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






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






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






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






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






15. 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.






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






17. 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).






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






19. 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).






20. 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.






21. The amount of money available to consumers to purchase goods and services.






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






23. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






24. The effort of workers.






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






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






27. 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






28. 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.






29. 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.






30. Anything that can be used to produce something else






31. An industry structure in which there is only one seller for a product.






32. 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.






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






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






35. The transition point between economic recession and recovery.






36. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






38. 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).






39. 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






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






41. 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.






42. An increase in the price level






43. Rising prices - across the board.






44. 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.






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






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






47. 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.






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






49. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






50. 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.