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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. 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






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






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






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. 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.






6. 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).






7. The amount of a good actually sold.






8. 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?






9. The highest point of a business cycle.






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






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






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






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






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






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






16. 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).






17. 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).






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






19. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






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






21. 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.






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






23. 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.






24. 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.






25. Anything that can be used to produce something else






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






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






28. 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.






29. 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).






30. 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






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






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






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






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






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






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






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






38. A special tax imposed on imported goods.






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






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






41. Significantly responsive to a change in price.






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






43. Long- run aggregate supply curve






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






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






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






47. Consumer income rise - demand will rise.






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






49. 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.






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