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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. 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.






2. 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.






3. A special tax imposed on imported goods.






4. 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






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






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






7. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






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






9. 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.






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






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






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






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






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






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






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






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






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






19. 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.






20. 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.






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






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






23. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






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






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






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






28. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






29. 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.






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






31. 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






32. The study of scarcity and choice.






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






34. The proportion of each additional dollar of income that will go toward consumption expenditures.






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






36. 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.






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






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






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






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






41. Anything that shows the economy as a whole.






42. 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).






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






44. 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.






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






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






47. Short-run aggregate supply curve






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






49. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






50. The highest point of a business cycle.