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






2. A special tax imposed on imported goods.






3. 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.






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






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






6. 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.






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






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






9. The highest point of a business cycle.






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






11. 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?






12. The amount of money available to consumers to purchase goods and services.






13. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






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






15. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






16. 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.






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






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






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






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






21. The percentage of the civilian labor force that is unemployed. The number of persons unemployed divided by the number of persons in the civilian labor force (expressed as a percentage).






22. 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






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






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






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






26. The study of scarcity and choice.






27. 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.






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






29. Long- run aggregate supply curve






30. 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.






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






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






33. 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.






34. 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.






35. Short-run aggregate supply curve






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






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






38. 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).






39. The transition point between economic recession and recovery.






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






41. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






42. 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






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






44. Anything that shows the economy as a whole.






45. 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.






46. 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.






47. The proportion of each additional dollar of income that will go toward consumption expenditures.






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






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






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