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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. 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






2. 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.






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






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






5. The lowest point of a business cycle






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






7. Anything that can be used to produce something else






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






9. (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.






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






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






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






13. Rising prices - across the board.






14. Anything that shows the economy as a whole.






15. 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.






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






17. 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.






18. An increase in the price level






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






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






21. Consumer income rise - demand will rise.






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






23. The highest point of a business cycle.






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






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






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






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






28. 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.






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






30. Not significantly responsive to changes in price.






31. 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).






32. The transition point between economic recession and recovery.






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






34. 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.






35. 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).






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






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






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






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






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






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. 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.






43. 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).






44. 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






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






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






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






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






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






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