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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. (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.






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






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






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






5. 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).






6. The proportion of each additional dollar of income that is saved.






7. 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.






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






9. A bad depressingly prolonged recession in economic activity.






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






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






12. 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.






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






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






15. 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?






16. 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.






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






18. A special tax imposed on imported goods.






19. An increase in the price level






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






21. Anything that can be used to produce something else






22. 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.






23. The amount of a good actually sold.






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






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






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






27. Government officials make decisions about economy.






28. Long- run aggregate supply curve






29. 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






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






31. The addition to total revenue created by selling one additional unit of ouput.






32. 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






33. The highest point of a business cycle.






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






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






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






37. 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






38. The study of scarcity and choice.






39. 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.






40. Significantly responsive to a change in price.






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






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






43. Rising prices - across the board.






44. Occurs when supply and demand are balanced such that the market price and the quantity exchanged are under no market pressure to change.






45. 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.






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






47. 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.






48. 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).






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






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