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






2. The transition point between economic recession and recovery.






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






4. Significantly responsive to a change in price.






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






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






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






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






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






10. 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.






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. 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.






13. 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.






14. 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.






15. The lowest point of a business cycle






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






17. The study of scarcity and choice.






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






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






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






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






22. The effort of workers.






23. Fluctuations in real GDP around the trend value; also called economic fluctuations.






24. Anything that can be used to produce something else






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






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






27. The highest point of a business cycle.






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






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






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






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






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






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






34. 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.






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






36. Decisions by individuals about what to do and what not to do.






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






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






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






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






41. 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






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






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






44. 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.






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






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






47. An increase in the price level






48. Anything that shows the economy as a whole.






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






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