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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. 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






2. 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






3. Significantly responsive to a change in price.






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






5. 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.






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






7. 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






8. 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.






9. 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






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






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






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






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






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






15. 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.






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






17. 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.






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






19. The amount of a good actually sold.






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






21. 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.






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






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






24. Government officials make decisions about economy.






25. A bad depressingly prolonged recession in economic activity.






26. 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).






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






28. Economic tool used to determine exactly the amount of the new demand deposits that can be created from an initial deposit.






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






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






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






32. Anything that shows the economy as a whole.






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






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






35. 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.






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






37. 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?






38. The efforts of entrepreneurs in organizing resources for production taking risk to create new enterprises and innovating to develop new product.






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






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






41. An increase in the price level






42. The study of scarcity and choice.






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






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






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






46. 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.






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






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






49. 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).






50. The income of households after taxes have been paid