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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 Latin phrase meaning 'all things constant.'






2. 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






3. 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.






4. The income of households after taxes have been paid






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






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






7. Short-run aggregate supply curve






8. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






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






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






11. Anything that shows the economy as a whole.






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






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






14. 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.






15. Rising prices - across the board.






16. 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?






17. 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.






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






19. The transition point between economic recession and recovery.






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






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






22. The effort of workers.






23. 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.






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






25. A special tax imposed on imported goods.






26. 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).






27. 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






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 addition to total revenue created by selling one additional unit of ouput.






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






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






32. 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.






33. 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.






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






35. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






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






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






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






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






40. Consumer income rise - demand will rise.






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






42. 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.






43. 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.






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






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






46. The highest point of a business cycle.






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






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






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






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