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






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






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






4. 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.






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






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






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






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






9. The study of scarcity and choice.






10. Long- run aggregate supply curve






11. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






13. 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.






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






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






16. 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.






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






18. 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






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






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






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






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






23. The transition point between economic recession and recovery.






24. 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.






25. 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.






26. The highest point of a business cycle.






27. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






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






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






30. Government officials make decisions about economy.






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






33. 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?






34. (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.






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






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






37. 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.






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






39. 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.






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






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






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






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






44. 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.






45. 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.






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






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






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






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






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