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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. Anything that shows the economy as a whole.






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






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






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






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






6. 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).






7. 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.






8. 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.






9. 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.






10. Short-run aggregate supply curve






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






12. The amount of a good actually sold.






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






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






15. 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.






16. (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.






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






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






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






20. 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.






21. 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.






22. Not significantly responsive to changes in price.






23. The transition point between economic recession and recovery.






24. 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






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






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






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






28. 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.






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






30. 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).






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






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






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






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






35. 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.






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






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






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






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






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






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






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






43. 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.






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






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






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






47. 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.






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






49. Consumer income rise - demand will rise.






50. 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?