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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 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.






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






3. Rising prices - across the board.






4. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






5. The effort of workers.






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






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






8. Significantly responsive to a change in price.






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






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






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






12. 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






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






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






15. Changes - adjustments - and strategies that the governments implements in spending or taxation to achieve particular economic goals.






16. A special tax imposed on imported goods.






17. 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.






18. Anything that can be used to produce something else






19. The lowest point of a business cycle






20. 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






21. Government officials make decisions about economy.






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






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






24. 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.






25. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






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






27. 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?






28. 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.






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






30. The study of scarcity and choice.






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






32. Consumer income rise - demand will rise.






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






34. A bad depressingly prolonged recession in economic activity.






35. 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).






36. Short-run aggregate supply curve






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






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






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






40. Anything that shows the economy as a whole.






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






42. When the percent of change in the quantity demanded equals the percent of change in price.






43. (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.






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






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






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






47. 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).






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






49. 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.






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