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






3. Anything that shows the economy as a whole.






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






5. Short-run aggregate supply curve






6. Long- run aggregate supply curve






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






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






9. 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.






10. The amount of a good actually sold.






11. The highest point of a business cycle.






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






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






14. The lowest point of a business cycle






15. 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?






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






17. Rising prices - across the board.






18. 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.






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






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






21. 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






22. 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.






23. A market with only a few sellers - each offering a product that is largely the same as the others' products; in an oligopoly - there is always a tension between cooperation and competition.






24. 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






25. 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.






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






27. An industry structure in which there is only one seller for a product.






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






29. 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.






30. 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.






31. Significantly responsive to a change in price.






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






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






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






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






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






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






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






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






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. Not significantly responsive to changes in price.






42. Government officials make decisions about economy.






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






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






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






46. Consumer income rise - demand will rise.






47. (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.






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






49. 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






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