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






2. 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.






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






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






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






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






7. The lowest point of a business cycle






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






9. Short-run aggregate supply curve






10. 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






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






13. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






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






17. The income of households after taxes have been paid






18. Government officials make decisions about economy.






19. The highest point of a business cycle.






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






21. 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).






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






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






24. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






25. Long- run aggregate supply curve






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






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






28. 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.






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






30. 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.






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






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






33. 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.






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






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






36. 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).






37. Anything that shows the economy as a whole.






38. 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.






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






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






41. Anything that can be used to produce something else






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






43. Consumer income rise - demand will rise.






44. 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






45. 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.






46. 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.






47. 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.






48. 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.






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






50. 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.