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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. 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






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






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






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






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






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






7. 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.






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






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. 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).






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






12. 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.






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






14. Significantly responsive to a change in price.






15. (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.






16. An increase in the price level






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






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






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






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






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






22. 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.






23. 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).






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






25. 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.






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






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






28. 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.






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






30. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






32. Anything that can be used to produce something else






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






34. The dollar value of all the goods and services sold to house holds.






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






36. A special tax imposed on imported goods.






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






39. The effort of workers.






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






41. The lowest point of a business cycle






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






43. A bad depressingly prolonged recession in economic activity.






44. Rising prices - across the board.






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






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






47. Fluctuations in real GDP around the trend value; also called economic fluctuations.






48. The highest point of a business cycle.






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






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