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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 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.






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






3. The income of households after taxes have been paid






4. 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.






5. Significantly responsive to a change in price.






6. A bad depressingly prolonged recession in economic activity.






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






8. 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.






9. 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.






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






11. Real cost of an item is its opportunity cost.






12. 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






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






14. 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.






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






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






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






18. 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.






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






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






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






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






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






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






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






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






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






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






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






30. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






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






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






33. 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






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






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






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






37. 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.






38. 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.






39. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






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






41. The effort of workers.






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






43. An increase in the price level






44. 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.






45. The amount of a good actually sold.






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






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






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






49. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






50. 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.