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






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






3. 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.






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






5. A shift of the demand curve resulting from a change in consumer taste and preferences.






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






7. 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).






8. The effort of workers.






9. 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.






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






11. An increase in the price level






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






13. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






14. 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.






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






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






17. 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.






18. The lowest point of a business cycle






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






20. Rising prices - across the board.






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






22. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






23. 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?






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






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






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






27. 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.






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






29. Anything that can be used to produce something else






30. 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.






31. 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).






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






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






34. 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.






35. 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.






36. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






38. 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






39. The study of scarcity and choice.






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






41. 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.






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






43. The transition point between economic recession and recovery.






44. The income of households after taxes have been paid






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






46. Government officials make decisions about economy.






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






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






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






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