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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 bad depressingly prolonged recession in economic activity.






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






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






4. 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.






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






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






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






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






9. 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.






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






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






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






13. 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.






14. 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.






15. 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






16. Long- run aggregate supply curve






17. Anything that shows the economy as a whole.






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






19. Significantly responsive to a change in price.






20. 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).






21. The transition point between economic recession and recovery.






22. 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.






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






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






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






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






27. 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.






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






29. 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.






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






31. 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






32. 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).






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






34. The income of households after taxes have been paid






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






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






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






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






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






40. Consumer income rise - demand will rise.






41. 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






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






43. The income earned by households and profits earned by firms after subtracting.






44. The lowest point of a business cycle






45. The effort of workers.






46. 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.






47. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






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