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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 effort of workers.






3. Significantly responsive to a change in price.






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






5. An increase in the price level






6. 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.






7. 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.






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






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






10. A bad depressingly prolonged recession in economic activity.






11. 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.






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






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






14. The transition point between economic recession and recovery.






15. 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.






16. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






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






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






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






21. Not significantly responsive to changes in price.






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






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






24. Long- run aggregate supply curve






25. 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.






26. 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.






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






28. 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.






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






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






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






32. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






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






34. Rising prices - across the board.






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






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






37. 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.






38. 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).






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






40. The dollar value of goods and services sold to governments.






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






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






43. 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.






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






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






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






47. Anything that shows the economy as a whole.






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






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






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