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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. Anything that shows the economy as a whole.






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






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






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






5. 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.






6. 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






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






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






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






10. Rising prices - across the board.






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






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






13. A special tax imposed on imported goods.






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






15. 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.






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






17. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






19. Significantly responsive to a change in price.






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






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






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






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






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






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 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.






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






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






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






30. 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).






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






32. 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






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






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






35. 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.






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






37. 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).






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






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






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






41. Long- run aggregate supply curve






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






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






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






45. 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?






46. 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






47. 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.






48. 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).






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






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