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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. Real cost of an item is its opportunity cost.






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






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






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






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






6. 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).






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






8. A bad depressingly prolonged recession in economic activity.






9. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






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






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






12. Anything that shows the economy as a whole.






13. An increase in the price level






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






15. Period in which the economy moves from a trough to a peak and a real GDP is increasing; also called a boom.






16. 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.






17. 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.






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






19. 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






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






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






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






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






24. Period in which a recession becomes prolonged and deep - involving high unemployment.






25. 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.






26. 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).






27. The effort of workers.






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






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






30. Not significantly responsive to changes in price.






31. Significantly responsive to a change in price.






32. 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.






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






34. 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?






35. 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






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






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






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






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






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






41. 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.






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






43. 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






44. The transition point between economic recession and recovery.






45. 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.






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






47. The amount of a good actually sold.






48. Anything that can be used to produce something else






49. The highest point of a business cycle.






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