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






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






3. The highest point of a business cycle.






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






5. Not significantly responsive to changes in price.






6. A special tax imposed on imported goods.






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






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






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






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






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






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






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






14. Decisions by individuals about what to do and what not to do.






15. 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.






16. 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.






17. Government officials make decisions about economy.






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






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






20. The deliberate control of the money supply by the Federal government.






21. 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






22. 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.






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






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






25. 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.






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






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






28. 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?






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






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






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






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






33. The transition point between economic recession and recovery.






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






35. The amount of a good actually sold.






36. 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.






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






38. Significantly responsive to a change in price.






39. (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.






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






41. 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).






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






43. 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.






44. 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






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






46. The income of households after taxes have been paid






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






48. 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.






49. 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).






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