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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. Significantly responsive to a change in price.






2. The effort of workers.






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






4. A curve defining the relationship between real production and price level.






5. 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.






6. Real cost of an item is its opportunity cost.






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






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






9. A bad depressingly prolonged recession in economic activity.






10. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






13. The transition point between economic recession and recovery.






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






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






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






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






18. 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).






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






20. 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.






21. 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.






22. 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.






23. Short-run aggregate supply curve






24. 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






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






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






27. The amount of a good actually sold.






28. 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.






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






30. 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.






31. 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).






32. 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.






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






34. 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.






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. 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.






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






38. The highest point of a business cycle.






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






41. 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






42. 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).






43. 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).






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






45. Anything that can be used to produce something else






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






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






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






49. 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.






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







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