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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 deliberate control of the money supply by the Federal government.






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






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






4. 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.






5. 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






6. A special tax imposed on imported goods.






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






8. The highest point of a business cycle.






9. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.






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






11. 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






12. Significantly responsive to a change in price.






13. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






14. 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.






15. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






17. An increase in the price level






18. 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.






19. Anything that can be used to produce something else






20. 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?






21. 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.






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






23. The transition point between economic recession and recovery.






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






25. The amount of a good actually sold.






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






27. 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.






28. 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.






29. Not significantly responsive to changes in price.






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






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






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






33. The study of scarcity and choice.






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






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






36. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






37. 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.






38. 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






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






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






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






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






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






44. 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.






45. 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.






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






47. Government officials make decisions about economy.






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






49. Short-run aggregate supply curve






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