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






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






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






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






5. 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.






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






7. Anything that can be used to produce something else






8. 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.






9. An increase in the price level






10. 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.






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






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






13. 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?






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






15. 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.






16. 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.






17. 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).






18. 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.






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






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






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






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






23. Short-run aggregate supply curve






24. The lowest point of a business cycle






25. The income of households after taxes have been paid






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






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






28. 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






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






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






31. 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.






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






33. 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






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






35. 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.






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






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






38. Long- run aggregate supply curve






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






40. 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.






41. The transition point between economic recession and recovery.






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






43. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






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






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






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






47. Not significantly responsive to changes in price.






48. 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






49. The study of scarcity and choice.






50. The amount of a good actually sold.