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






2. A curve depicting the relationship between real GDP demanded (i.e. - expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right.






3. 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.






4. The lowest point of a business cycle






5. 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.






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






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






8. Anything that can be used to produce something else






9. The income of households after taxes have been paid






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






11. The study of scarcity and choice.






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






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






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






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






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






17. Not significantly responsive to changes in price.






18. Significantly responsive to a change in price.






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






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






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






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






23. 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






24. Long- run aggregate supply curve






25. The amount of a good actually sold.






26. 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






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






28. 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.






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






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






31. 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.






32. 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.






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






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






35. Consumer income rise - demand will rise.






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






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






38. 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.






39. 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






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






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






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






43. The graphical representation of the law of demand. Shows the amount of a good buyers are willing and able to buy at various prices.






44. 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.






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






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






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






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






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






50. 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.