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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 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.






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






4. 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).






5. The sum of all the quantities of a good supplies by all producers at each price.






6. 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.






7. 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.






8. 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.






9. 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.






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






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






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






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






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






16. Enacted when the government deliberately increases its deficit to stimulate the economy; the government increases its spending (increases G) - cuts taxes (decreases T) - or both - and stimulates the economy by expanding aggregate demand (AD).






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






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






19. The income of households after taxes have been paid






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






21. 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






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






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






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






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






26. The amount of a good actually sold.






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






28. 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






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






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






31. 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






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






33. Short-run aggregate supply curve






34. Anything that can be used to produce something else






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






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






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






38. Government officials make decisions about economy.






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






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






41. (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.






42. Significantly responsive to a change in price.






43. The study of scarcity and choice.






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






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






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






47. 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.






48. 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.






49. A bad depressingly prolonged recession in economic activity.






50. 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.