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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. Anything that shows the economy as a whole.






2. A special tax imposed on imported goods.






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






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






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






6. The income of households after taxes have been paid






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






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






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






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






11. 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






12. Rising prices - across the board.






13. 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






14. 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.






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






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






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






18. Not significantly responsive to changes in price.






19. 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.






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






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






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






23. 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.






24. The study of scarcity and choice.






25. An increase in the price level






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






27. 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.






28. 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.






29. 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






30. 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).






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






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






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






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






35. (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.






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






37. 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.






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. 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).






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






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






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






43. 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.






44. 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.






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






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






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






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






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






50. Significantly responsive to a change in price.