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






2. 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.






3. The amount of a good actually sold.






4. The study of scarcity and choice.






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






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






7. An increase in the price level






8. A shift of the demand curve resulting from a change in consumer taste and preferences.






9. 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






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






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






12. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






13. 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.






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






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






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






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






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






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






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






21. The highest point of a business cycle.






22. 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).






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






24. 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.






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






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






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






28. 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.






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






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






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






32. A bad depressingly prolonged recession in economic activity.






33. 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.






34. 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.






35. Rising prices - across the board.






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






37. 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).






38. The effort of workers.






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






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






41. The lowest point of a business cycle






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






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






44. Government officials make decisions about economy.






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






46. Significantly responsive to a change in price.






47. A special tax imposed on imported goods.






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






49. Anything that shows the economy as a whole.






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