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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 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).






2. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






3. Consumer income rise - demand will rise.






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. Real cost of an item is its opportunity cost.






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






7. The highest point of a business cycle.






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






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






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






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






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






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






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






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






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






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






18. (population); Then there is a shift in the demand curve resulting from and increase or decrease in market demand - as specific consumption related to demographics is concerned.






19. 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






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






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






22. The income of households after taxes have been paid






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






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






25. 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.






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






27. 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






28. Anything that shows the economy as a whole.






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






30. 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






31. 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






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






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






34. Not significantly responsive to changes in price.






35. The amount of a good actually sold.






36. Significantly responsive to a change in price.






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






38. 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.






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






40. 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.






41. A special tax imposed on imported goods.






42. The study of scarcity and choice.






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






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






45. 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?






46. 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).






47. A bad depressingly prolonged recession in economic activity.






48. When consumers substitute a similar - lower priced product for a product which is relatively more expensive.






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






50. Rising prices - across the board.