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






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






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






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






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






6. Significantly responsive to a change in price.






7. 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).






8. Anything that shows the economy as a whole.






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






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






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






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






13. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






15. Short-run aggregate supply curve






16. 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.






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






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






19. A special tax imposed on imported goods.






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






21. Government officials make decisions about economy.






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






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






24. Consumer income rise - demand will rise.






25. The income of households after taxes have been paid






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






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






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






29. Long- run aggregate supply curve






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






31. 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.






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






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






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






35. 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.






36. 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.






37. The highest point of a business cycle.






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






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






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






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






42. 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






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






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






45. 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






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






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






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






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






50. 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?