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






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






3. 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.






4. 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.






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






6. The amount of a good actually sold.






7. Rising prices - across the board.






8. A special tax imposed on imported goods.






9. The long-run pattern of growth and recession.






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






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






12. 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.






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






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






15. 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






16. The transition point between economic recession and recovery.






17. An increase in the price level






18. 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.






19. 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.






20. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






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






22. 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.






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






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






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






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






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






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






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






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






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






32. 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.






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






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






35. The study of scarcity and choice.






36. 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).






37. 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.






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






39. Anything that can be used to produce something else






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






41. The income of households after taxes have been paid






42. (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.






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






44. 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.






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






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






47. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






48. 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.






49. Significantly responsive to a change in price.






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