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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 Latin phrase meaning 'all things constant.'






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






3. The dollar value of production by a country's citizens.






4. The transition point between economic recession and recovery.






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






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






7. 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).






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






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






10. The effort of workers.






11. Long- run aggregate supply curve






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






13. 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






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






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






16. The highest point of a business cycle.






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






18. 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






19. 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.






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






21. 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.






22. A bad depressingly prolonged recession in economic activity.






23. 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.






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






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






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






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






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






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






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






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






32. 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.






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






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






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






36. 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).






37. Significantly responsive to a change in price.






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






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






40. 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.






41. 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.






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






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






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






45. A special tax imposed on imported goods.






46. 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).






47. 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.






48. 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).






49. The dollar value of all the goods and services sold to house holds.






50. (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.