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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. 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.






2. 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.






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






4. 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.






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






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






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






8. Significantly responsive to a change in price.






9. Anything that can be used to produce something else






10. 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.






11. 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






12. 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).






13. Long- run aggregate supply curve






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






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






16. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






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






18. 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.






19. 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.






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






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






22. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






23. 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).






24. 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.






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






26. When the percent of change in the quantity demanded equals the percent of change in price.






27. The income of households after taxes have been paid






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






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






30. A bad depressingly prolonged recession in economic activity.






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






32. 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.






33. 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.






34. 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.






35. Not significantly responsive to changes in price.






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






37. 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).






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






39. 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






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






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






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






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






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






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






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






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






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






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






50. 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