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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 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.






2. The effort of workers.






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






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






5. 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






6. Government officials make decisions about economy.






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






8. Anything that shows the economy as a whole.






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






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






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






12. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






13. The highest point of a business cycle.






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






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






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






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






18. 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.






19. 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.






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






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






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






23. The transition point between economic recession and recovery.






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






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






26. The income of households after taxes have been paid






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






28. A special tax imposed on imported goods.






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






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






31. 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.






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






33. Long- run aggregate supply curve






34. 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).






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






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






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






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






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






41. 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.






42. 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.






43. The lowest point of a business cycle






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






45. A bad depressingly prolonged recession in economic activity.






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






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






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






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






50. 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).