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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 special tax imposed on imported goods.






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






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






4. 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






5. 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.






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






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






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






9. 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.






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






11. The amount of a good actually sold.






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






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






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






15. 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.






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






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






18. 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.






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






20. 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).






21. 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.






22. The effort of workers.






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






24. 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.






25. 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?






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






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






28. Anything that shows the economy as a whole.






29. 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.






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






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






32. Rising prices - across the board.






33. 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.






34. Significantly responsive to a change in price.






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






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






37. Government officials make decisions about economy.






38. Anything that can be used to produce something else






39. The lowest point of a business cycle






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. 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






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






43. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






45. Consumer income rise - demand will rise.






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






47. 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.






48. 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.






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






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