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






2. 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.






3. 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






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






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






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






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






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






9. Long- run aggregate supply curve






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






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






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






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






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






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






16. A special tax imposed on imported goods.






17. 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).






18. The lowest point of a business cycle






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






20. 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).






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






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






23. The highest point of a business cycle.






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






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






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






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






28. 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.






29. 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.






30. A bad depressingly prolonged recession in economic activity.






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






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






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






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






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






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






37. 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.






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






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






40. The income of households after taxes have been paid






41. 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.






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






43. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






46. 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.






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






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






49. 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.






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