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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. Decisions by individuals about what to do and what not to do.






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






3. 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?






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






5. (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.






6. Anything that can be used to produce something else






7. 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.






8. A special tax imposed on imported goods.






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






10. 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.






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






12. The income of households after taxes have been paid






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






14. 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).






15. Not significantly responsive to changes in price.






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






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






18. The study of scarcity and choice.






19. 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.






20. A Latin phrase meaning 'all things constant.'






21. 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.






22. The lowest point of a business cycle






23. 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.






24. Government officials make decisions about economy.






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. 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.






27. 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.






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






29. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






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






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






32. Rising prices - across the board.






33. 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






34. 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.






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






36. 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.






37. The effort of workers.






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






39. The transition point between economic recession and recovery.






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






41. Anything that shows the economy as a whole.






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






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






44. 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).






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






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






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






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






49. 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).






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