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






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






3. The transition point between economic recession and recovery.






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






5. 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.






6. Long- run aggregate supply curve






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






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






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






10. 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.






11. 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






12. 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.






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






14. 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).






15. 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.






16. 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.






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






18. 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.






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






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






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






22. A special tax imposed on imported goods.






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






24. 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






25. 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).






26. The income of households after taxes have been paid






27. 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.






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






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






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






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






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






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






34. A measure of the price level - or the average level of prices.






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






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






37. 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






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






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






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






41. The study of scarcity and choice.






42. 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.






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






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






45. A bad depressingly prolonged recession in economic activity.






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






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






48. The highest point of a business cycle.






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






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