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






2. The amount of a good actually sold.






3. The conflict between limited resources and unlimited human wants; the basic economic problem facing all societies.






4. Significantly responsive to a change in price.






5. 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.






6. The study of scarcity and choice.






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






8. Government officials make decisions about economy.






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






10. 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.






11. A curve defining the relationship between real production and price level.






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






13. 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.






14. 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.






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






16. 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.






17. A comprehensive group of statistics that measures various aspects of the economy's performance - net exports exports minus imports.






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






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






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






21. 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.






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






23. The lowest point of a business cycle






24. 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).






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






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






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






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






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






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






31. (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.






32. 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.






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






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






36. The proportion of each additional dollar of income that is saved.






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






38. 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






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






40. 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.






41. The highest point of a business cycle.






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






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






44. Anything that can be used to produce something else






45. The transition point between economic recession and recovery.






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






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






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






50. Not significantly responsive to changes in price.