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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 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.






2. 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).






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






4. 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.






5. A bad depressingly prolonged recession in economic activity.






6. The amount of a good actually sold.






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






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






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






10. 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.






11. The transition point between economic recession and recovery.






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






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






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






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






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






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






18. 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.






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






20. 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.






21. The lowest point of a business cycle






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






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






24. Significantly responsive to a change in price.






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






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






27. 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).






28. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






29. The willingness and ability of buyers to purchase a good or service.






30. The highest point of a business cycle.






31. Anything that shows the economy as a whole.






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






33. 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.






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






35. 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.






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






37. The effort of workers.






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






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






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






41. 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.






42. Rising prices - across the board.






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






44. Consumer income rise - demand will rise.






45. Government officials make decisions about economy.






46. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc






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






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






49. 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.






50. A shift in the demand curve resulting from consumer expectations regarding future income or future price of Goods and Services.