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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. Rising prices - across the board.






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






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






4. Anything that can be used to produce something else






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






6. The effort of workers.






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






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






9. The amount of a good actually sold.






10. 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).






11. The income of households after taxes have been paid






12. 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.






13. (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.






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






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






16. The transition point between economic recession and recovery.






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






18. Short-run aggregate supply curve






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






20. 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






21. An increase in the price level






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






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






24. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






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






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






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






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






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






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






31. 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.






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






33. The deliberate control of the money supply by the Federal government.






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






35. Significantly responsive to a change in price.






36. 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






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






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






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






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






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






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






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






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






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






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






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






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






49. 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






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