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






2. Not significantly responsive to changes in price.






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






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






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






6. 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.






7. 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






8. The dollar value of production within a nation's border.






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






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






11. 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.






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






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






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






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






17. 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).






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






19. 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.






20. 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.






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






22. 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.






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






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






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






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






27. 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






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






29. The amount of a good actually sold.






30. The income of households after taxes have been paid






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






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






33. 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.






34. Rising prices - across the board.






35. The study of scarcity and choice.






36. Long- run aggregate supply curve






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






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






39. 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?






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






41. 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.






42. The effort of workers.






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






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






45. 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).






46. (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.






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






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






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






50. 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.