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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 income of households after taxes have been paid






2. Significantly responsive to a change in price.






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






4. 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.






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






6. 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?






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






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






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






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






11. The gross domestic product calculated using current-year prices; for example - the nominal GDP for 2001 would calculate the value of production using2001 prices for goods and services. Nominal GDP can vary widely from year to year - due to forces suc






12. The lowest point of a business cycle






13. Not significantly responsive to changes in price.






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






15. 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.






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






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






18. The transition point between economic recession and recovery.






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






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






21. 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.






22. Anything that can be used to produce something else






23. 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






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






25. 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.






26. A measure of the price level - or the average level of prices.






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






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






29. The amount of a good actually sold.






30. 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.






31. 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.






32. (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.






33. Anything that shows the economy as a whole.






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






35. 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.






36. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






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






38. 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






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






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






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






42. 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.






43. 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.






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






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






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






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






48. 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.






49. The highest point of a business cycle.






50. The effort of workers.