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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. Significantly responsive to a change in price.






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






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






5. 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






6. 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.






7. 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.






8. 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.






9. 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






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






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






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






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






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






15. 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.






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






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






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






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






20. The effort of workers.






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






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






23. An increase in the price level






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






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






26. The transition point between economic recession and recovery.






27. 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).






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






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






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






31. Not significantly responsive to changes in price.






32. The highest point of a business cycle.






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






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






35. 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






36. 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.






37. Long- run aggregate supply curve






38. 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.






39. 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.






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






41. 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.






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






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






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






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






46. 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






47. 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






48. 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).






49. The study of scarcity and choice.






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