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






2. The proportion of each additional dollar of income that will go toward consumption expenditures.






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






4. The income of households after taxes have been paid






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






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






7. 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).






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






9. 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).






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






11. Anything that can be used to produce something else






12. 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.






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






14. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






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






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






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






18. 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.






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






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






21. A special tax imposed on imported goods.






22. 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.






23. Anything that shows the economy as a whole.






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






25. Government officials make decisions about economy.






26. Not significantly responsive to changes in price.






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






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






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






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






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






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






33. 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).






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






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






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






37. Unemployment faced by workers who have lost their jobs because of changing market (demand) conditions & who have transferable skills; unemployment due to the natural frictions of the economy.






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






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






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






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






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






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






44. 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.






45. Significantly responsive to a change in price.






46. A very high rate of inflation - under which prices go up very rapidly - often more than 1 -000 percent in a year. This causes money to become a poor store of value.






47. A relationship between two factors in which the factors move in opposite directions. ex: price increases - then quantity decreases.






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






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






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