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






2. Rising prices - across the board.






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






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






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






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






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






8. (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.






9. 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.






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






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






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






13. 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.






14. The effort of workers.






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






16. 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.






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






18. The addition to total revenue created by selling one additional unit of ouput.






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






20. 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.






21. 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.






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






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






24. 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.






25. 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






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






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






28. 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.






29. 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.






30. 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).






31. The lowest point of a business cycle






32. Long- run aggregate supply curve






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






34. 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.






35. The willingness and ability of buyers to purchase a good or service.






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






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






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






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






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






41. An increase in the price level






42. 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).






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






44. 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).






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






46. 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).






47. 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.






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






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






50. The amount of a good actually sold.