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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 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.






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






3. 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.






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






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






6. Not significantly responsive to changes in price.






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






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






9. An increase in the price level






10. 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.






11. 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?






12. 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).






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






14. Significantly responsive to a change in price.






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






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






17. The dollar value of all the goods and services sold to house holds.






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






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






20. A bad depressingly prolonged recession in economic activity.






21. 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






22. Consumer income rise - demand will rise.






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






24. (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.






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






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






27. Government officials make decisions about economy.






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






29. 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.






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






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






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






33. 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).






34. 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.






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






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






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






38. 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






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






40. Long- run aggregate supply curve






41. Period in which a recession becomes prolonged and deep - involving high unemployment.






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






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






44. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & whose skills don't match the requirements of available jobs.






45. 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.






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






47. 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.






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






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






50. The highest point of a business cycle.