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






3. 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).






4. Long- run aggregate supply curve






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






6. 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






7. The study of scarcity and choice.






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






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






10. 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.






11. 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).






12. The group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






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






15. An increase in the price level






16. 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.






17. 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.






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






19. The income of households after taxes have been paid






20. 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.






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






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






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






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






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






26. 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).






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






28. 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






29. The price of a domestic currency in terms of a foreign currency.






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






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






32. Consumer income rise - demand will rise.






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






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






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






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






37. 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.






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






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






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






41. Government officials make decisions about economy.






42. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






43. The effort of workers.






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






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. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






47. 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.






48. Anything that can be used to produce something else






49. (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.






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