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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 special tax imposed on imported goods.






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






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






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






5. The transition point between economic recession and recovery.






6. 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.






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






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






9. 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.






10. 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.






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






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






13. 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.






14. An increase in the price level






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






16. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






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






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






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






20. Not significantly responsive to changes in price.






21. Government officials make decisions about economy.






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






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






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






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






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






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






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






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






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






31. 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.






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






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






34. 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.






35. 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.






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






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






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






39. 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.






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






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






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






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






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






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






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






47. A bad depressingly prolonged recession in economic activity.






48. 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).






49. Significantly responsive to a change in price.






50. The amount of a good actually sold.