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






2. Anything that can be used to produce something else






3. A special tax imposed on imported goods.






4. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






5. The transition point between economic recession and recovery.






6. 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.






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






8. An increase in the price level






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






10. The effort of workers.






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






12. Government officials make decisions about economy.






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






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






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






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






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






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






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






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






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






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






24. Long- run aggregate supply curve






25. 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.






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






27. The amount of a good actually sold.






28. 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






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






30. 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?






31. The income of households after taxes have been paid






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






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






34. A bad depressingly prolonged recession in economic activity.






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






36. Significantly responsive to a change in price.






37. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






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






40. 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.






41. 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.






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






43. 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).






44. The lowest point of a business cycle






45. The amount of money available to consumers to purchase goods and services.






46. 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.






47. 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






48. 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.






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






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