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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. Anything that can be used to produce something else






2. Consumer income rise - demand will rise.






3. A special tax imposed on imported goods.






4. The dollar value of goods and services sold to governments.






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






6. The highest point of a business cycle.






7. 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).






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






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






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






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






12. The amount of a good actually sold.






13. 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.






14. 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.






15. 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






16. 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).






17. 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.






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






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






20. 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.






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






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






23. 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






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






25. 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.






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






27. 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.






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






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






31. A bad depressingly prolonged recession in economic activity.






32. (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.






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






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






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






36. 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.






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






39. A relationship between two factors in which the factors move in the same direction.






40. The study of scarcity and choice.






41. 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






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






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






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






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






46. 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.






47. 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.






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






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






50. 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.