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






2. 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.






3. 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.






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






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






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






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






8. 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






9. Government officials make decisions about economy.






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






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






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






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






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






15. 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






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






17. 1/RRR - where RRR is the required reserve ratio expressed as a decimal; if the required reserve ratio is 10% (0.1) - the money multiplier is 1/0.1 = 10.






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






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






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






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






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






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






24. 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.






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






26. 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






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






28. Not significantly responsive to changes in price.






29. Rising prices - across the board.






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






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






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






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






34. The long-run pattern of growth and recession.






35. 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






36. 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.






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






38. 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.






39. The sum of each individual consumer's demand curves for a certain good in a market (e.g. - all the individual quantities of Good B demanded at each price).






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






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






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






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






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






45. Will shift either to the left(decrease) in demand - or to the right(increase) in demand; shift is caused by a change in one of the non-price determinates for the good.






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






47. Anything that can be used to produce something else






48. (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.






49. The amount of a good actually sold.






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