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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 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






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






3. Short-run aggregate supply curve






4. 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).






5. 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.






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






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






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






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






10. The lowest point of a business cycle






11. 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?






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






13. 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.






14. Government officials make decisions about economy.






15. 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).






16. 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.






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






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






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






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






21. 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.






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






23. Anything that can be used to produce something else






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






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






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






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






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






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






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






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






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






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






34. Significantly responsive to a change in price.






35. 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.






36. A special tax imposed on imported goods.






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






38. 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).






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






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






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






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






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






45. Anything that shows the economy as a whole.






46. The transition point between economic recession and recovery.






47. Not significantly responsive to changes in price.






48. The income of households after taxes have been paid






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






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