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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. The long-run pattern of growth and recession.






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






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






4. Government officials make decisions about economy.






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. The cost of something in terms of what one must give up to get it.






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






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






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






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






11. Significantly responsive to a change in price.






12. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






14. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






15. 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.






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






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






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






19. 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






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






21. 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.






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






23. Anything that shows the economy as a whole.






24. 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.






25. The income of households after taxes have been paid






26. A bad depressingly prolonged recession in economic activity.






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






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






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






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






31. Anything that can be used to produce something else






32. 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.






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






34. 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).






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






36. 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.






37. The study of scarcity and choice.






38. Long- run aggregate supply curve






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






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






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






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






43. The highest point of a business cycle.






44. A special tax imposed on imported goods.






45. 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.






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






47. The lowest point of a business cycle






48. An increase or decrease in consumer income will cause a shift in the Demand Curve.






49. 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






50. 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