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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 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






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






3. Consumer income rise - demand will rise.






4. Significantly responsive to a change in price.






5. 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.






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






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






8. 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






9. A law stating that as an additional unit of a particular food is consumed the utility (satisfaction) gained decreases.






10. 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.






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






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






13. 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.






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






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






16. 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.






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






18. 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.






19. The transition point between economic recession and recovery.






20. An increase in the price level






21. 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.






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






23. A special tax imposed on imported goods.






24. Decisions by individuals about what to do and what not to do.






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






26. 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.






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






28. The amount of a good actually sold.






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






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






31. 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).






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






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






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






35. A table showing quantities of a good demanded at varying prices; a table demonstrating the number of units of a good demanded at various points.






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






37. 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.






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






39. 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.






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






41. (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.






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






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






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






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






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






47. 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).






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






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






50. 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.