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






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






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






4. 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.






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






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






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






8. 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.






9. The income of households after taxes have been paid






10. 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.






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






12. 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






13. 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).






14. 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).






15. 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.






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






17. Movement up or down a single demand curve - contrasted with movement of the demand curve itself.






18. Long- run aggregate supply curve






19. 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.






20. An increase in the price level






21. 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.






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






23. 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






24. (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.






25. 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.






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






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






28. 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.






29. 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.






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






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






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






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






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






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






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






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






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






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






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






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






42. The effort of workers.






43. 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






44. Not significantly responsive to changes in price.






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






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






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






48. Inflation created when an increase in the costs of production (wages or raw materials) shifts the short-run aggregate supply (AS) curve to the left; tends to push prices up while reducing the level of real GDP at the same time (stagflation).






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






50. A bad depressingly prolonged recession in economic activity.