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






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






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






4. 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.






5. The income of households after taxes have been paid






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






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






8. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






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






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






11. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






12. 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.






13. The dollar value of production by a country's citizens.






14. A bad depressingly prolonged recession in economic activity.






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






16. The highest point of a business cycle.






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






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






19. 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.






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






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






22. Rising prices - across the board.






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






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






25. 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.






26. Government officials make decisions about economy.






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






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






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






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






31. 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.






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






33. 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






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






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






36. 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.






37. 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.






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






39. 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.






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






41. Significantly responsive to a change in price.






42. The transition point between economic recession and recovery.






43. 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.






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






45. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






46. 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.






47. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






49. 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.






50. The effort of workers.