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






2. 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.






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






4. A bad depressingly prolonged recession in economic activity.






5. Not significantly responsive to changes in price.






6. Anything that shows the economy as a whole.






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






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






9. 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.






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






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






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






13. The amount of a good actually sold.






14. 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.






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






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






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






18. Significantly responsive to a change in price.






19. 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).






20. 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?






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






22. Anything from the land and/or nature. Ex: minerals - timber - petroleum - cotton.






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






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






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






26. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






27. 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.






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






29. 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.






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






31. 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.






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






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






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






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






36. 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.






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






38. The effort of workers.






39. Government officials make decisions about economy.






40. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






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






42. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






43. The transition point between economic recession and recovery.






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






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






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






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






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






50. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.