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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. Not significantly responsive to changes in price.






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






3. 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.






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






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






6. The effort of workers.






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






8. The amount of a good actually sold.






9. The study of scarcity and choice.






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






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






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






13. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






14. 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.






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






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






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






18. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






19. 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.






20. 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.






21. Short-run aggregate supply curve






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






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






24. 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.






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






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






27. 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.






28. An increase in the price level






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






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






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






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






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






34. Rising prices - across the board.






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






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






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






38. The lowest point of a business cycle






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






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






41. 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.






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






43. 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.






44. 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.






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






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






47. 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).






48. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






49. 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.






50. 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