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






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






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






4. An increase in the price level






5. 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.






6. Rising prices - across the board.






7. 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






8. 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.






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






10. 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.






11. Not significantly responsive to changes in price.






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






13. A type of inflation that occurs when an economy's output (real GDP decreases and its price level rises; production stagnates (as during a recession) while prices (and unemployment) go up.






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






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






16. The highest point of a business cycle.






17. 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.






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






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






20. 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.






21. 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.






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






23. (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.






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






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






26. The income of households after taxes have been paid






27. Consumer income rise - demand will rise.






28. Anything that can be used to produce something else






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






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






31. 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.






32. 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).






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






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






35. 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






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






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






38. The lowest point of a business cycle






39. A period of slow economic growth - usually accompanied by rising unemployment; two consecutive quarters of declining output.






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






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






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






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






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






45. 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.






46. Short-run aggregate supply curve






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






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






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






50. A special tax imposed on imported goods.