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






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






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






4. Anything that shows the economy as a whole.






5. 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.






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






7. The transition point between economic recession and recovery.






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






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






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






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






12. 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.






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. 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.






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






16. 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).






17. 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.






18. Short-run aggregate supply curve






19. The income of households after taxes have been paid






20. 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






21. 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.






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






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






24. 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).






25. 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






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






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






28. Anything that can be used to produce something else






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






30. A bad depressingly prolonged recession in economic activity.






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






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






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






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






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






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






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






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






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






40. Restrictions on the quantity of a good that can be imported






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






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






43. The study of scarcity and choice.






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






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






46. 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.






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






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






49. Not significantly responsive to changes in price.






50. Rising prices - across the board.