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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 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.






2. The study of scarcity and choice.






3. 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.






4. Significantly responsive to a change in price.






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






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






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






8. 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).






9. Rising prices - across the board.






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






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






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






13. 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.






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






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






16. 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?






17. 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.






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






19. 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.






20. Long- run aggregate supply curve






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






22. Anything that can be used to produce something else






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






24. Anything that shows the economy as a whole.






25. 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






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






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






28. 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.






29. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






31. 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






32. 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).






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






34. The transition point between economic recession and recovery.






35. A bad depressingly prolonged recession in economic activity.






36. 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.






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






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






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






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






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






42. 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.






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






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






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






46. The dollar value of goods and services sold to governments.






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






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






49. 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.






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