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






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






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






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






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






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






7. The amount of a good actually sold.






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






9. 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.






10. Not significantly responsive to changes in price.






11. Anything that can be used to produce something else






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






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






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






15. 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.






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






17. The income of households after taxes have been paid






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






19. 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






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






21. 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






22. 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).






23. A special tax imposed on imported goods.






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






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






26. 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.






27. 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.






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






29. 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.






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






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






32. When the percent of change in quantity demanded is greater than the percent of change in price; when there is a large change in the quantity of a good demanded - and a small change in price of the good.






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






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






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






36. 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.






37. (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.






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






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






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






41. 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.






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






43. Expenditure by businesses on plant and equipment and the change in business invention.






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






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






46. Significantly responsive to a change in price.






47. The transition point between economic recession and recovery.






48. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






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






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