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






2. Significantly responsive to a change in price.






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






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






5. Government officials make decisions about economy.






6. 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






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






8. 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?






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






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






11. Long- run aggregate supply curve






12. Anything that can be used to produce something else






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






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






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






16. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






17. 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.






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






19. 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.






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






21. 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.






22. The amount of a good actually sold.






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






24. Anything that shows the economy as a whole.






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






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






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






28. An increase in the price level






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






30. 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






31. 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.






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






33. 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






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






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






36. 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






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






38. The effort of workers.






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






40. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






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






43. 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.






44. Rising prices - across the board.






45. The study of scarcity and choice.






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






47. 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.






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






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






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