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






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






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






4. 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.






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






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






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






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






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






10. 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.






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. 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.






13. 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).






14. A movement along the demand curve in response to a change in price - ceteris paribus; change in price means move along the demand curve; movement = money.






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






16. 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.






17. 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.






18. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






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






20. The study of scarcity and choice.






21. Short-run aggregate supply curve






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






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






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






25. The transition point between economic recession and recovery.






26. 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






27. 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.






28. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






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






30. Government officials make decisions about economy.






31. Not significantly responsive to changes in price.






32. Anything that shows the economy as a whole.






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






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






35. Long- run aggregate supply curve






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






37. A good for which there is less demand as income rises; a good the demand for which falls as income rises and rises as income falls; consumer income rises while demand decreases.






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






39. 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






40. When the percent of change in the quantity demanded equals the percent of change in price.






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






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






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






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






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






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






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






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






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






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