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AP Macroeconomics

Subjects : economics, ap
Instructions:
  • Answer 50 questions in 15 minutes.
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  • Match each statement with the correct term.
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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. An increase or decrease in consumer income will cause a shift in the Demand Curve.






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






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






4. Anything that can be used to produce something else






5. 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.






6. The income of households after taxes have been paid






7. Consumer income rise - demand will rise.






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






9. Significantly responsive to a change in price.






10. 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?






11. (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.






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






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






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






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






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






17. The highest point of a business cycle.






18. 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.






19. The study of scarcity and choice.






20. 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.






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






22. 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.






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






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






25. 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).






26. The deliberate control of the money supply by the Federal government.






27. 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.






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






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






30. The transition point between economic recession and recovery.






31. 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






32. An increase in the price level






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






34. 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).






35. 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






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






37. Government officials make decisions about economy.






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






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






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






41. Not significantly responsive to changes in price.






42. A bad depressingly prolonged recession in economic activity.






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






44. 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






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






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






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






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






49. 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






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