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






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






3. Consumer income rise - demand will rise.






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






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






6. 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.






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






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






9. 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).






10. A bad depressingly prolonged recession in economic activity.






11. 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?






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






13. Short-run aggregate supply curve






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






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






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






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






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






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






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






21. The study of scarcity and choice.






22. 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.






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






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






25. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






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






27. 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.






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






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






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






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






32. 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.






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






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






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






36. 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.






37. 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.






38. An increase in the price level






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






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






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






42. 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.






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






44. 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.






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






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






47. The dollar value of all the goods and services sold to house holds.






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






49. 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.






50. 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.