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






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






3. 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.






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






5. Rising prices - across the board.






6. 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.






7. 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.






8. 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.






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






10. The amount of money available to consumers to purchase goods and services.






11. 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?






12. The dollar value of all the goods and services sold to house holds.






13. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






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






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






17. 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






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. 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






20. An increase in the price level






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






22. 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






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






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






26. Anything that shows the economy as a whole.






27. The study of scarcity and choice.






28. Not significantly responsive to changes in price.






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






30. 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).






31. 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.






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






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. 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.






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






36. 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).






37. 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






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






39. 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).






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






41. 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.






42. Government officials make decisions about economy.






43. Short-run aggregate supply curve






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






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






46. A bad depressingly prolonged recession in economic activity.






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






48. A country has a trade deficit if the value of its commodity imports exceeds the value of its commodity exports.






49. 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.






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