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






2. The income of households after taxes have been paid






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






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






5. Short-run aggregate supply curve






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






7. The lowest point of a business cycle






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






9. 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.






10. 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.






11. 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.






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






13. The highest point of a business cycle.






14. The effort of workers.






15. A bad depressingly prolonged recession in economic activity.






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






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. 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?






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






20. The amount of a good actually sold.






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






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






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






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






25. 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.






26. (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.






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






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






29. 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.






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






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






32. 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.






33. Significantly responsive to a change in price.






34. The deliberate control of the money supply by the Federal government.






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






36. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






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






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






39. 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.






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






41. Not significantly responsive to changes in price.






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






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






44. 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.






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






46. 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






47. 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.






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






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