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






2. The study of scarcity and choice.






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






4. A special tax imposed on imported goods.






5. 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.






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






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






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






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. Significantly responsive to a change in price.






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






12. The highest point of a business cycle.






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






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






15. Long- run aggregate supply curve






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






17. 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.






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






19. 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.






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. Law stating that as a price of a good increases - the quantity demanded of the good decreases - and vice versa.






22. Anything that can be used to produce something else






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






24. Anything that shows the economy as a whole.






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






26. The deliberate control of the money supply by the Federal government.






27. The income of households after taxes have been paid






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






29. Short-run aggregate supply curve






30. 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.






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






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






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






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






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






36. 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.






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






38. 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.






39. 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.






40. The dollar value of production by a country's citizens.






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






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






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






44. The effort of workers.






45. 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).






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






47. 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






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






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