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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. 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.






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






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






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






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






6. 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.






7. 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.






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






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






10. 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.






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






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






13. 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.






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






15. 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






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






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






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






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






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






21. 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.






22. 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






23. A bad depressingly prolonged recession in economic activity.






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






25. 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.






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






27. A special tax imposed on imported goods.






28. Short-run aggregate supply curve






29. The study of scarcity and choice.






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






31. The highest point of a business cycle.






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






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






34. 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






35. 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).






36. Consumer income rise - demand will rise.






37. The proportion of each additional dollar of income that is saved.






38. Anything that shows the economy as a whole.






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






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






41. Rising prices - across the board.






42. Long- run aggregate supply curve






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






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






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






46. 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.






47. 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.






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 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.






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