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






2. 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.






3. Not significantly responsive to changes in price.






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






5. Anything that can be used to produce something else






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






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






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






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






10. The proportion of each additional dollar of income that will go toward consumption expenditures.






11. 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.






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






13. (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.






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






15. Government officials make decisions about economy.






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






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






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






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






20. The study of scarcity and choice.






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






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






23. Rising prices - across the board.






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






25. 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.






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






27. 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.






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






29. Mathematical approximation used to measure the effect of economic growth; this rule tells us the approximate number of years it will take for some measure (real GDP - price level - savings account - etc.) to double given a known annual percentage inc






30. 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






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






32. 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).






33. A bad depressingly prolonged recession in economic activity.






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






35. 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.






36. 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.






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






38. 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.






39. 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.






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






41. Short-run aggregate supply curve






42. 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).






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






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






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






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






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






48. 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?






49. 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.






50. A Latin phrase meaning 'all things constant.'