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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. 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.






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






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






4. 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.






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






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






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






8. 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.






9. 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.






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






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






12. The amount of a good actually sold.






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






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






15. 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.






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






17. 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.






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






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






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






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






22. An increase in the price level






23. 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.






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






25. 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






26. The highest point of a business cycle.






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






28. 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.






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






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






31. 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.






32. Anything that shows the economy as a whole.






33. A special tax imposed on imported goods.






34. The study of scarcity and choice.






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






36. A bad depressingly prolonged recession in economic activity.






37. 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).






38. The transition point between economic recession and recovery.






39. 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.






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






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






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






43. Consumer income rise - demand will rise.






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






45. 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






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






47. 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?






48. 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).






49. 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).






50. Not significantly responsive to changes in price.