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






2. 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.






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






4. The effort of workers.






5. The study of scarcity and choice.






6. A bad depressingly prolonged recession in economic activity.






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






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






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






10. 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.






11. 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






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






13. 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?






14. 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).






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






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






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






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






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






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






21. 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.






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






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






24. 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.






25. 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.






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






27. The highest point of a business cycle.






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






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






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






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






32. Long- run aggregate supply curve






33. 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.






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






35. 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.






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






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






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






39. Not significantly responsive to changes in price.






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






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






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






43. 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






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






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






46. 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.






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






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






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






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