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






2. 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.






3. 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.






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






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






6. 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.






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






8. The dollar value of production within a nation's border.






9. The amount of a good actually sold.






10. 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?






11. The effort of workers.






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






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






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






15. 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.






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






17. Not significantly responsive to changes in price.






18. 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.






19. 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.






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






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






22. 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.






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






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






25. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






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






28. (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.






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






30. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






31. 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).






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






34. 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






35. 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.






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






37. Significantly responsive to a change in price.






38. The study of scarcity and choice.






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






40. The income of households after taxes have been paid






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






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






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






44. 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.






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






46. The highest point of a business cycle.






47. A special tax imposed on imported goods.






48. 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.






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






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







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