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






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






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






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






5. 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.






6. 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.






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






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






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






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






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






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






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






14. The income of households after taxes have been paid






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






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






17. 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.






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






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






20. 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.






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






22. 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.






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






24. The study of scarcity and choice.






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






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






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. 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).






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






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






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






32. Rising prices - across the board.






33. 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.






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






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






36. Significantly responsive to a change in price.






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






38. Government officials make decisions about economy.






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






40. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






41. 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.






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






43. 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.






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






45. Anything that can be used to produce something else






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






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






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






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






50. 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