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






2. Anything that shows the economy as a whole.






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






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






5. A bad depressingly prolonged recession in economic activity.






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






7. 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.






8. 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.






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






10. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






12. A shift of the demand curve resulting from a change in consumer taste and preferences.






13. Real cost of an item is its opportunity cost.






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






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






16. The income of households after taxes have been paid






17. 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.






18. 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.






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






20. 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.






21. 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.






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






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






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






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






26. Significantly responsive to a change in price.






27. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






28. The study of scarcity and choice.






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






30. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






31. 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.






32. 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.






33. 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).






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






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






36. 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).






37. The amount of a good actually sold.






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






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






40. 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).






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






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






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






44. 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






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






46. Consumer income rise - demand will rise.






47. Anything that can be used to produce something else






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






49. An increase in the price level






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