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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. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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






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






5. An increase in the price level






6. Consumer income rise - demand will rise.






7. 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.






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






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






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






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






12. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






14. 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.






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






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






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






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






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






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






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






22. 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.






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






24. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






26. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






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






28. Anything that can be used to produce something else






29. 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?






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






31. Significantly responsive to a change in price.






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






33. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






34. 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.






35. The lowest point of a business cycle






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






37. 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.






38. A bad depressingly prolonged recession in economic activity.






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






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






41. Rising prices - across the board.






42. 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






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






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






45. The effort of workers.






46. 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.






47. The transition point between economic recession and recovery.






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






49. The study of scarcity and choice.






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