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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. Government officials make decisions about economy.






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






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






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






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






6. 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.






7. The study of scarcity and choice.






8. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






9. The transition point between economic recession and recovery.






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






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






12. 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.






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






14. Short-run aggregate supply curve






15. Rising prices - across the board.






16. Anything that can be used to produce something else






17. 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






18. 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.






19. 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).






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






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






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






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






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






25. 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.






26. 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.






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






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






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






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






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






32. The effort of workers.






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






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






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






36. 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).






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






38. 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.






39. 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.






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






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






42. 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






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






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






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






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






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






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






49. Inflation that follows from an increase in aggregate demand - which will cause equilibrium real GDP (Y) to increase and the equilibrium price level (P) to increase.






50. 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.