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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 group of individuals who are either working or actively looking for work; the labor force includes the unemployed: labor force = number of individuals in labor force/number of individuals in the adult population - expressed as a percentage.






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






3. Anything that can be used to produce something else






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






5. 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.






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






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






8. 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






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






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






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






12. 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






13. The amount of a good actually sold.






14. Government officials make decisions about economy.






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






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






17. (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.






18. 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.






19. The effort of workers.






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






21. 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.






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






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






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






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






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






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






28. The study of scarcity and choice.






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






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






31. Rising prices - across the board.






32. Not significantly responsive to changes in price.






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






34. 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).






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






36. 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






37. Long- run aggregate supply curve






38. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






39. Anything that shows the economy as a whole.






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






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






42. A special tax imposed on imported goods.






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






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






45. A good the demand for which rises as income rises and falls as income falls; consumer income rises and demand rises.






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






47. 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.






48. 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.






49. The lowest point of a business cycle






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