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






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






3. Anything that can be used to produce something else






4. 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.






5. 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.






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






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






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






9. An increase in the price level






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






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. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






14. Consumer income rise - demand will rise.






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






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






17. 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.






18. Anything that shows the economy as a whole.






19. 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






20. The amount of a good actually sold.






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






22. 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.






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






24. 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.






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






26. 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.






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






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






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






30. 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






31. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






33. A person who has been unemployed and searching for a job for so long - that they have given up on finding a job and therefore forfeit unemployment.






34. 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).






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






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






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






38. 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.






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






40. The transition point between economic recession and recovery.






41. Long- run aggregate supply curve






42. The lowest point of a business cycle






43. The income of households after taxes have been paid






44. 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.






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






46. A bad depressingly prolonged recession in economic activity.






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






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






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






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