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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. 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.






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






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






4. (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.






5. 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






6. Long- run aggregate supply curve






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






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






9. A bad depressingly prolonged recession in economic activity.






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






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






12. 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.






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






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. 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?






16. 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).






17. 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.






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






19. The highest point of a business cycle.






20. 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






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






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






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






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






25. Consumer income rise - demand will rise.






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






27. 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).






28. 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.






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






30. A special tax imposed on imported goods.






31. 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.






32. The study of scarcity and choice.






33. 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.






34. 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.






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






36. 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






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






38. The effort of workers.






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






40. Significantly responsive to a change in price.






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






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






43. The lowest point of a business cycle






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






45. 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.






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






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






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






49. 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.






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