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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. Consumer income rise - demand will rise.






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






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






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






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






6. A special tax imposed on imported goods.






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






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






9. 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






10. 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.






11. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






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






14. 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






15. An increase in the price level






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






17. 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






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






19. Decisions by individuals about what to do and what not to do.






20. Short-run aggregate supply curve






21. The income of households after taxes have been paid






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






23. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






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






25. Anything that can be used to produce something else






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






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






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






29. 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.






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






31. 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.






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






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






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






35. 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.






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






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






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






39. 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.






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






41. Not significantly responsive to changes in price.






42. 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.






43. Rising prices - across the board.






44. The study of scarcity and choice.






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






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






47. 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.






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






49. 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.






50. (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.