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






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






4. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






6. 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.






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






8. The study of scarcity and choice.






9. 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.






10. A special tax imposed on imported goods.






11. The addition to total revenue created by selling one additional unit of ouput.






12. Government officials make decisions about economy.






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






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






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






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






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






18. 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).






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






20. 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.






21. The highest point of a business cycle.






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






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






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






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






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






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






28. 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.






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






30. Significantly responsive to a change in price.






31. Anything that shows the economy as a whole.






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






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






34. The transition point between economic recession and recovery.






35. The income of households after taxes have been paid






36. 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.






37. Long- run aggregate supply curve






38. Short-run aggregate supply curve






39. Anything that can be used to produce something else






40. An increase in the price level






41. The amount of a good actually sold.






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






43. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






44. 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.






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






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






47. 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?






48. 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.






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






50. Consumer income rise - demand will rise.