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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 special tax imposed on imported goods.






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






3. The income of households after taxes have been paid






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






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






6. Anything that can be used to produce something else






7. 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






8. 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.






9. 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.






10. 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.






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






12. Not significantly responsive to changes in price.






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






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






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






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






17. 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






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






19. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






21. 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.






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






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. 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






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






26. The highest point of a business cycle.






27. 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).






28. (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.






29. 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.






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






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






32. 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.






33. Short-run aggregate supply curve






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






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






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






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






38. An increase in the price level






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






40. 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






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






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






43. The effort of workers.






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






45. Where the demand curve is horizontal - reflecting situation in which any change in price reduces quantity demanded to '0.' the result of a competitive market consumers will go elsewhere to purchase the product.






46. 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.






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






48. Government officials make decisions about economy.






49. 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






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