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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 study of scarcity and choice.






2. Real cost of an item is its opportunity cost.






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






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






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






6. Significantly responsive to a change in price.






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






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






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






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






11. 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).






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






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






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






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






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






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






18. Anything that can be used to produce something else






19. 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.






20. 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).






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






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






23. Rising prices - across the board.






24. Consumer income rise - demand will rise.






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






27. 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.






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






29. 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






30. A special tax imposed on imported goods.






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






32. Government officials make decisions about economy.






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






34. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






36. The effort of workers.






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






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






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






40. The lowest point of a business cycle






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






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






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






44. 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.






45. A Latin phrase meaning 'all things constant.'






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






47. A bad depressingly prolonged recession in economic activity.






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






49. An increase in the price level






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