AP Macro. Units 1-3 Review

Actual unemployment is...

An individual has _________ if the opportunity cost of producing a good/service is lower for that individual.

Makes prescriptions about the way the economy should work.

The rate at which one good can be exchanged for another.

rising overall price level

Business cycle: output is rising, unemployment is falling

Which of the following is NOT a factor of production?

Allows people to get more of what they want than they could if they tried to be self-sufficient.

Which of the following is NOT included in GDP?

Unemployment that results when workers lack the skills required for available jobs or more people seeking than jobs.

An economy achieves _________ if it produces at the point on the PPC that makes consumers as well off as possible.

An individual has __________ in producing a good/service if he can make more of it with given amount of time/resources.

Two goods are _______ if a rise in the price of one of the goods leads to an increase in the demand for the other good.

Nonworking people who would like to work but have given up looking for a job due to the job market.

What you must give up to get something (next best forgone alternative)!

When the quantity supplied of a good/service exceeds the quantity demanded. It is a...

Which of these is NOT a way to measure GDP?

The increased costs of transactions caused by inflation.

The "all other things equal" assumption (other factors remain unchanged)

An upper limit on the quantity of a good that can be bought or sold.

GDP that is equivalent to the average GDP per person

Legal restrictions on how high or low a price may go.

States the higher the price the less people will demand of a good/service.

When a rise in income decreases the demand for a good. It is a(n)

Which of these is NOT a supply shifter?

People who would like to be employed & have recently looked for work but are not currently looking for work.

The sum of employment and unemployment

Rewards or punishments that motivate particular choices.

An economic situation is in __________ when no individual would be better off doing something different.

Industry is publicly owned and a central authority makes production & consumption decisions.