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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 Latin phrase meaning 'all things constant.'






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






3. 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.






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






5. 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.






6. The study of scarcity and choice.






7. Anything that shows the economy as a whole.






8. 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.






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






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






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






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






13. 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.






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






15. 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.






16. Significantly responsive to a change in price.






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






18. 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






19. 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.






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






21. Anything that can be used to produce something else






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






23. 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






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






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






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






27. 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.






28. Rising prices - across the board.






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






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






31. Not significantly responsive to changes in price.






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






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






34. A way of measuring the GDP by adding up all spending on final goods and services during a given year.






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






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






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






38. Consumer income rise - demand will rise.






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






40. 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.






41. 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.






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






43. A special tax imposed on imported goods.






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






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






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






47. 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.






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






49. Short-run aggregate supply curve






50. 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.