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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. Anything that can be used to produce something else






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






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






5. 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.






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






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






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






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






10. Significantly responsive to a change in price.






11. 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.






12. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






13. 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).






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






15. The price of a domestic currency in terms of a foreign currency.






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






17. (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.






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






19. 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.






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






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






22. 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






23. The transition point between economic recession and recovery.






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






25. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






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






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






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






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






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






31. 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






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






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






34. 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?






35. 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.






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






37. 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.






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






39. 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.






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






41. A special tax imposed on imported goods.






42. The amount of a good actually sold.






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






44. The income of households after taxes have been paid






45. Not significantly responsive to changes in price.






46. 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.






47. Consumer income rise - demand will rise.






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






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






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