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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. A special tax imposed on imported goods.






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






3. 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.






4. 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.






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






6. 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.






7. The branch of economics that deals with human behavior and choices as they relate to the entire economy.






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






9. An increase in the price level






10. Consumer income rise - demand will rise.






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






12. The study of scarcity and choice.






13. Not significantly responsive to changes in price.






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






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






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






17. 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.






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






19. 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






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






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






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






23. 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.






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






25. A measure of the price level - or the average level of prices.






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






27. The effort of workers.






28. Anything that shows the economy as a whole.






29. 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.






30. Expenditure by businesses on plant and equipment and the change in business invention.






31. A bad depressingly prolonged recession in economic activity.






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






33. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






34. The lowest point of a business cycle






35. The income of households after taxes have been paid






36. Short-run aggregate supply curve






37. The transition point between economic recession and recovery.






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






39. 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






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






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






42. 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?






43. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






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






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






47. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






48. 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.






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






50. 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.