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






2. 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.






3. An increase in the price level






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






5. 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






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






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






8. A bad depressingly prolonged recession in economic activity.






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






10. 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).






11. 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.






12. 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.






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






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






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






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






17. Monetary policy methods by which the Fed aims to increase the money supply and lower interest rates - thereby creating an increase in output; in pursuit of expansionary policy goals - the Fed can lower the required reserve ratio - lower the discount






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






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






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






21. 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






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






23. 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.






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






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






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






27. 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).






28. 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






29. 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






30. The lowest point of a business cycle






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






32. 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






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






34. Short-run aggregate supply curve






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






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






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






38. Decisions of individual producers and consumers determine what how and for whom to reduce. Minor Government interference. Economy is run by itself.






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. The payment that capital receives in the factor market.






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






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






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






44. Price control set when the market price is believed to be too high.






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






46. Consumer income rise - demand will rise.






47. The dollar value of goods and services sold to governments.






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






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






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