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






2. 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?






3. 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.






4. Consumer income rise - demand will rise.






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






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






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






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






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






10. The amount of a good actually sold.






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






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






13. Real cost of an item is its opportunity cost.






14. Government officials make decisions about economy.






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






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






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






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






19. 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.






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






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






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






23. 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.






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






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






26. 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






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






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






29. 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).






30. 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.






31. 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.






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






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






34. 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.






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






36. 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).






37. 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






38. 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.






39. (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.






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






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






42. Total revenue (TR) price of a good multiplied by the number of units sold; TR = P*Q.






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






44. Significantly responsive to a change in price.






45. 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).






46. Goods that go together - if price ? the demand for both that good and complimentary good ?.






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






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






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






50. A civilian - non-institutionalized adult is considered to be unemployed when he or she does not have a job but is actively looking for one; unemployment figures reflect the number of individuals meeting this definition who are parts of the labor forc