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






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






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






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






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






6. 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).






7. The income of households after taxes have been paid






8. Not significantly responsive to changes in price.






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






10. Consumer income rise - demand will rise.






11. 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).






12. Long- run aggregate supply curve






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






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






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






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






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. 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.






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






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






21. 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.






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






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






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






25. 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






26. The effort of workers.






27. 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.






28. 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).






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






30. The highest point of a business cycle.






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






32. 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.






33. The transition point between economic recession and recovery.






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






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






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






37. 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.






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 long-run pattern of growth and recession.






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






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. 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.






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






44. Anything that shows the economy as a whole.






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






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






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






48. A Latin phrase meaning 'all things constant.'






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






50. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.