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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






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






4. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






6. Restrictions on the quantity of a good that can be imported






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






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






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






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






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






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






13. 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






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






16. Short-run aggregate supply curve






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






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






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






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






21. 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).






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






23. 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.






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






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






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






27. 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.






28. Government officials make decisions about economy.






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






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






31. States that as prices rise - people are willing and able to buy less of a good and - hence - the quantity demanded decreases; as prices fall - people are willing and able to buy more - so the quantity demanded increases and the demand curve slopes do






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






33. 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.






34. Anything that can be used to produce something else






35. Anything that shows the economy as a whole.






36. 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.






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






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






39. 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.






40. 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






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






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






43. When the percent of change in the quantity demanded is less than then percent of change in price; when there is a small change in the quantity of a good demanded - and a large change in the price of the good.






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






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






46. The amount of a good actually sold.






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






48. 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.






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






50. 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.