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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. Real cost of an item is its opportunity cost.






2. 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?






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






4. Anything that shows the economy as a whole.






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






6. 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






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






8. 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






9. 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.






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






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






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






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






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






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






16. Goods that go together - if price ? the demand for both that good and complimentary good ?.






17. Rising prices - across the board.






18. Government officials make decisions about economy.






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






20. When the price of one currency falls relative to another currency - the first currency has depreciated relative to the other one.






21. The dollar value of production within a nation's border.






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






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






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






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






26. 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.






27. 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.






28. The highest point of a business cycle.






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






30. The amount of a good actually sold.






31. 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






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






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






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






35. 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.






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






37. 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).






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






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






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






41. The lowest point of a business cycle






42. 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.






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






44. 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.






45. 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.






46. An increase in the price level






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






48. Not significantly responsive to changes in price.






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






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