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






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






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






4. 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.






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






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






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






8. Long- run aggregate supply curve






9. Anything that shows the economy as a whole.






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






11. 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.






12. 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.






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






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






15. The effort of workers.






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






17. 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.






18. 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.






19. 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.






20. Graphic representation of an inverse relationship between wage growth (percentage change in price level - such as inflation) and unemployment.






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






22. 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.






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






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






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






26. Price control set when the market price is believed to be too low.






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






28. Anything that can be used to produce something else






29. 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).






30. An increase in the price level






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






32. 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.






33. Can be measured by using TR as a gauge; a decrease in TR following an increase in Price = Elastic Demand - When Price and TR move in opposite directions..... P?/TR? or P?/TR?






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






35. The amount of a good actually sold.






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






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






38. The proportion of each additional dollar of income that is saved.






39. Rising prices - across the board.






40. Fluctuations in real GDP around the trend value; also called economic fluctuations.






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






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






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






44. 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.






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






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






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






48. A specific percentage of checking account deposits that each bank must keep in liquid - zero-interest reserves; this amount is set by the Fed.






49. 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.






50. Goods that go together - if price ? the demand for both that good and complimentary good ?.