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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 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.






3. Long- run aggregate supply curve






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






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






6. 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.






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






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






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






10. Anything that can be used to produce something else






11. 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.






12. 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.






13. The effort of workers.






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






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






16. Results an increase in the demand for normal goods and a decrease in the demand for inferior goods.






17. 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.






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






19. 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






20. 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.






21. 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.






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






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






24. Goods that compete with one another. If the price for one goes up the demand for the other will go up.






25. 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.






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






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






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






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






30. 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.






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






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






33. Short-run aggregate supply curve






34. Restrictions on the quantity of a good that can be imported






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






36. 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.






37. (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.






38. Not significantly responsive to changes in price.






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






40. 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.






41. An increase in the price level






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






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






44. 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.






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






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






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






48. 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






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






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