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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • 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. 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.






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






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






4. Nominal GDP corrected for inflation; real GDP is calculated using prices from a given base year - which may not be the same as the year being measured or the year in which the calculations are made. Real GDP allows economists to compare changes in pr






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






6. Consumer income rise - demand will rise.






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






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






9. Rising prices - across the board.






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






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






12. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






15. 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.






16. 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?






17. 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).






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






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






20. The cost of something in terms of what one must give up to get it.






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






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






23. The study of scarcity and choice.






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






25. An increase in the price level






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






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






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






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






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






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






32. 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).






33. The lowest point of a business cycle






34. Government officials make decisions about economy.






35. 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






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






37. 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.






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






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






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






41. 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.






42. The amount of a good actually sold.






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






44. Anything that can be used to produce something else






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






46. 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.






47. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






48. Significantly responsive to a change in price.






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






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







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