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






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






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






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






5. Anything that shows the economy as a whole.






6. 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.






7. 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.






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






9. 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






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






11. 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.






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






13. 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.






14. 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.






15. Long- run aggregate supply curve






16. The proportion of each additional dollar of income that is saved.






17. 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.






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






19. 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).






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






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






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






23. A special tax imposed on imported goods.






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. 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).






26. Fluctuations in real GDP around the trend value; also called economic fluctuations.






27. 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.






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






29. 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.






30. Unemployment that reflects changes in the business cycle; the difference between the official unemployment rate & the natural rate of unemployment.






31. A bad depressingly prolonged recession in economic activity.






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. 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).






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






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






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






37. Significantly responsive to a change in price.






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






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






40. Anything that can be used to produce something else






41. 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.






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






43. The difference between the maximum price a consume is (or would be) willing to pay and the price he or she actually pays.






44. 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.






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






46. 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.






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






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






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






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