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






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






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






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






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






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






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






8. 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.






9. 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.






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. The effort of workers.






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






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






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






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






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






17. A special tax imposed on imported goods.






18. 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






19. The income of households after taxes have been paid






20. Rising prices - across the board.






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






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






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






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






25. 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.






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. Short-run aggregate supply curve






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






29. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






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






31. 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.






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






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






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






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






36. 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.






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






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






39. 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).






40. 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?






41. 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.






42. 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).






43. 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.






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






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






46. (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.






47. 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






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






49. 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.






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