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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. Significantly responsive to a change in price.






2. The transition point between economic recession and recovery.






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






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






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






6. 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.






7. Anything that shows the economy as a whole.






8. A bad depressingly prolonged recession in economic activity.






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






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






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






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






13. 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).






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






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






16. Rising prices - across the board.






17. The highest point of a business cycle.






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






19. Long- run aggregate supply curve






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






21. 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.






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






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






24. 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.






25. 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






26. 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.






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






28. 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.






29. 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






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






31. The lowest point of a business cycle






32. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






34. The amount of a good actually sold.






35. The effort of workers.






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






37. An increase in the price level






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






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






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






41. A relationship between two factors in which the factors move in the same direction.






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






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






44. The income of households after taxes have been paid






45. 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.






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






47. 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.






48. The study of scarcity and choice.






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






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