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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. Anything that shows the economy as a whole.






2. 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.






3. 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.






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






5. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






7. (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.






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






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






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






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






12. The income of households after taxes have been paid






13. Anything that can be used to produce something else






14. The transition point between economic recession and recovery.






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






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






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






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






19. Consumer income rise - demand will rise.






20. 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.






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






22. Significantly responsive to a change in price.






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






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






26. A special tax imposed on imported goods.






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






28. The amount of a good actually sold.






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






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






31. 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.






32. 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.






33. 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.






34. 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?






35. An increase in the price level






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






37. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






38. Government officials make decisions about economy.






39. 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.






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






41. 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.






42. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






43. The highest point of a business cycle.






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






45. Short-run aggregate supply curve






46. 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






47. 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






48. 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.






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






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