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






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






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






4. Rising prices - across the board.






5. 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.






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






7. Significantly responsive to a change in price.






8. 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.






9. 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.






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






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






12. (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.






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






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






15. 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.






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






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






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






19. 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.






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






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






22. 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






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






24. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






25. 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.






26. 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?






27. 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.






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






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






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






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






32. 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.






33. A special tax imposed on imported goods.






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






35. 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.






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






37. 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.






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






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






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






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






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






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






44. The amount of a good actually sold.






45. Long- run aggregate supply curve






46. Anything that shows the economy as a whole.






47. The highest point of a business cycle.






48. Short-run aggregate supply curve






49. 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






50. 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.