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






2. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






3. 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.






4. 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.






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






6. Rising prices - across the board.






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






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






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






10. 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.






11. Long- run aggregate supply curve






12. 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.






13. A bad depressingly prolonged recession in economic activity.






14. 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.






15. 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.






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






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






18. Short-run aggregate supply curve






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






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






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






22. 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.






23. 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






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






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






26. The long-run pattern of growth and recession.






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






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






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






30. 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






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






32. 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






33. The study of scarcity and choice.






34. Anything that shows the economy as a whole.






35. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






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






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






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






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






40. 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






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






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






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






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






45. 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.






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






47. Consumer income rise - demand will rise.






48. 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.






49. 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.






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