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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. The proportion of each additional dollar of income that is saved.






2. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






4. 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.






5. 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






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






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






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






9. 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






10. The income of households after taxes have been paid






11. 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.






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






13. 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






14. 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.






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






16. Short-run aggregate supply curve






17. The lowest point of a business cycle






18. A bad depressingly prolonged recession in economic activity.






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






20. Rising prices - across the board.






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






22. 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.






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






24. The effort of workers.






25. 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.






26. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






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






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






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






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






32. 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?






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






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






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






36. 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






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






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






40. States that as the price of a good increases - the quantity supplied of a good increases - and as the price of a good decreases - the quantity supplied of the good decreases.






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






42. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






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






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






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






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






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






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






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






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







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