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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. Rising prices - across the board.






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






3. Significantly responsive to a change in price.






4. The long-run pattern of growth and recession.






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






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






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






8. 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.






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






10. 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.






11. 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.






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






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






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






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






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






17. 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.






18. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






19. 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.






20. The highest point of a business cycle.






21. A bad depressingly prolonged recession in economic activity.






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






23. 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.






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






25. 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.






26. 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.






27. 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.






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






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






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






31. The amount of a good actually sold.






32. 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.






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






34. 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.






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






36. A special tax imposed on imported goods.






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






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






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






40. Long- run aggregate supply curve






41. Anything that shows the economy as a whole.






42. The effort of workers.






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






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






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






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






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






49. 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?






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