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






2. 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.






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






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






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






6. The highest point of a business cycle.






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






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






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






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






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






12. A special tax imposed on imported goods.






13. 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.






14. 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.






15. 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






16. An increase in the price level






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






18. 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).






19. Rising prices - across the board.






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






21. 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).






22. 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.






23. Significantly responsive to a change in price.






24. 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.






25. 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.






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






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






28. A bad depressingly prolonged recession in economic activity.






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






30. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






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






32. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






33. 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.






34. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






35. The lowest point of a business cycle






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






37. 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.






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






39. Short-run aggregate supply curve






40. 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.






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






42. 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.






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






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






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






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






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






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






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






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.